Corporate Sustainability Reporting Directive (CSRD)

The Corporate Sustainability Reporting Directive (CSRD) is an EU directive requiring in-scope companies to report information on their sustainability-related risks and opportunities and on the impacts of their activities on people and the environment. The CSRD is intended to improve the availability, comparability and reliability of sustainability information for investors and other stakeholders.

Companies subject to the CSRD are required to report in accordance with the European Sustainability Reporting Standards (ESRS), using a “double materiality” approach that considers both how sustainability matters may affect the company and how the company and its activities may affect people and the environment. Sustainability information is subject to independent assurance, initially at a limited-assurance level.

The scope and implementation timetable of the CSRD have been amended as part of the EU’s 2025–26 sustainability reporting simplification measures. The revised framework focuses the mandatory requirements on the largest companies, with the detailed scope and application depending on the relevant EU legislation and the characteristics of the undertaking. The ESRS have also been revised to simplify and streamline the reporting requirements.