EU Corporate Sustainability Reporting Directive (CSRD)

The European Parliament has 10 November 2022 adopted the Corporate Sustainability Reporting Directive (CSRD) proposed by the European Commission (EC) in April 2021. The proposal amends the 2014 non-financial reporting directive by introducing more detailed reporting requirements while capturing additional companies that will be required to report on sustainability issues such as environmental rights, social rights, human rights and governance factors.

The proposal aims to fill the gaps in the existing rules on non-financial information. Sustainability reporting could attract additional investments and funding to facilitate the transition to a sustainable economy as described in the Green Deal. For example, companies would need to provide better information on the sustainability risks to which they are exposed and on their own impact on people and the environment.
The CSRD introduces a certification requirement for sustainability reporting as well as improved accessibility of information mainly by requiring its publication in a dedicated section of company management reports. The European Financial Reporting Advisory Group (EFRAG) will be responsible for drafting the European reporting standards on which the reporting requirements will be based on. Thereafter, the European Commission is expected to adopt the corresponding Delegated Acts that will contain these reporting standards.

An analysis of the legislation can be found in the attached document.

The text of the CSRD adopted by the EU Parliament can be found at the following link

For any questions contact Valeria Sepe vsepe@rics.org