.png)
In November 2022, the European Commission introduced the Corporate Sustainability Reporting Directive (CSRD). This directive imposes annual reporting obligations on all large corporations, compelling them to issue reports detailing their environmental and social impact activities.
Similar to its predecessor, the Non-Financial Reporting Directive (NFRD), the CSRD serves a dual purpose: firstly, it facilitates routine reporting, enabling stakeholders such as investors, financial market participants, consumers, policymakers, and others to assess the non-financial performance of large enterprises. Consequently, this fosters the adoption of more robust environmental and social management practices by these companies.
Companies subject to the CSRD must submit their initial reports in accordance with CSRD requirements by January 2025.
The CSRD shares many commonalities with the NFRD, but it additionally mandates companies to disclose information regarding their sustainability risks and their impact on the environment and society. Consequently, the CSRD builds upon the foundation laid by the NFRD, both aiming to enhance transparency within the corporate sector, with the CSRD incorporating more extensive requirements than its predecessor.
