By Business & Finance 
The Corporate Sustainability Reporting Directive (CSRD) came into being on 5 January 2023. It strengthens the rules around reporting data concerning a company’s environmental and social information. But what does this mean?
The Corporate Sustainability Reporting Directive was introduced by the European Union and came into force in January 2023.
The new rules ensure investors and key stakeholders have direct access to the environmental and social data they need to assess the impact of compliant companies on the world’s climate and its people. It also aids them in gauging financial risk arising from climate change.
Legally, large EU-based companies and listed SMEs are now expected to report on their sustainability endeavours. Non-EU companies must also comply if they generate over the €150 million threshold in the EU.
Companies will also have to abide by the European Sustainability Reporting Standards (ESRS), an independent body bringing together various different stakeholders.
The CSRD also requires assurance on sustainability information reported, and will provide for the digital taxonomy of such information.
The Corporate Sustainability Due Diligence Directive (CSDDD) was also adopted in May 2024. This has created additional reporting requirements for companies, as has also introduced legal liability for companies regarding their supply chain.
Recently, Ursula von der Leyen, President of the European Commission, announced that the EU Taxonomy for Sustainable Activities (a classification system introduced in 2020 to gauge what is climate friendly) will be combined with CSRD and CSDDD into a single piece of regulation.
According to Forbes, insiders speculate the ‘Omnibus Simplification Package’ will likely be published in February 2025.
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Corporate Sustainability Reporting Directive Puts Sustainability at the Heart of Business Practices
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