The Corporate Sustainability Reporting Directive (CSRD) is an EU legislative framework aimed at improving and standardizing sustainability reporting among companies. Expanding on the Non-Financial Reporting Directive (NFRD) it requires detailed and comparable disclosures on environmental, social, and governance (ESG) factors.
The CSRD applies to all large companies and listed SMEs, mandating them to report on sustainability issues, undergo assurance of sustainability information, and follow European Sustainability Reporting Standards (ESRS). This directive enhances transparency and reliability in sustainability reporting, supporting the EU’s goals for sustainable business practices and climate change mitigation.