Corporate Sustainability Reporting Directive (CSRD)

The CSRD aims to replace and expand upon the existing Non-Financial Reporting Directive (NFRD) to strengthen the sustainability reporting obligations for large public-interest companies, including listed companies, banks, and insurance companies.The CSRD proposes to make sustainability reporting mandatory for covered companies, going beyond the current voluntary approach. It will introduce a standardized set of sustainability reporting requirements to ensure the comparability, reliability, and relevance of disclosed information.The CSRD aims to expand the scope of sustainability topics covered in reporting. It is likely to include a broader range of environmental, social, and governance (ESG) factors, such as climate change, biodiversity, human rights, diversity and inclusion, and supply chain impacts. As well, it proposes to introduce requirements for external assurance of sustainability information to enhance the reliability and trustworthiness of reported data.