DEFINITION
The CSRD is the EU directive that obliges large and listed companies to provide comprehensive, auditable sustainability reporting in accordance with the ESRS. It extends the scope compared to the NFRD and establishes detailed content, process and audit requirements.
DeclarationCSRD
The CSRD introduces a standardised reporting framework (ESRS) with mandatory disclosures on strategy, governance, impacts, risks and opportunities; the report is subject to mandatory assurance and must be integrated into the management report. The scope will be rolled out progressively, starting with large undertakings and listed SMEs, with specific exemptions and transitional provisions.
In practice, this means that companies require robust processes for materiality assessment, data collection and internal control, as well as consistent interfaces to the supply chain, environmental and financial systems. Mapping customer requirements (e.g. EcoVadis, CDP) to ESRS disclosures reduces duplication of effort and improves auditability.
Key Points
- Applies progressively to large and listed companies.
- Reporting framework defined by ESRS.
- Requires consistent, auditable data sources.
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