Corporate Sustainability Reporting Directive (CSRD)
Shaping the Future of Sustainability Reporting
CSRD is here
In November 2022, the EU Council announced its final approval on the adoption of the Corporate Sustainability Reporting Directive (CSRD). This is consistent with the commitment made by the Commission under the European Green Deal. The CSRD amends the existing Non-Financial Reporting Directive (NFRD) and entails a significant increase in reporting requirements for organisations that fall within its scope, in efforts to ensure availability and transparency of corporate sustainability disclosures for stakeholders.
Why the need for CSRD?
Investors, non-governmental organisations (NGOs), and civil society amongst others, have been identified as stakeholders who would fundamentally utilise sustainability information disclosed by company annual reports. These stakeholders are referred to as “primary users” by the Directive.
Investors are becoming increasingly cognisant of their investment risks and opportunities arising from sustainability issues, as well as the impacts of those investments on the environment and society.
NGOs, civil society, and other stakeholders also want to hold companies more accountable for their wider impact of their business activity.
The NFRD was not as stringent in prescribing how to report these sustainability issues, with the result that some companies were not reporting at all, or only partially reporting the sustainability information to the relevant primary users.
The CSRD intends to bridge this gap by ensuring that adequate disclosure regarding the risks that sustainability issues present for companies, and the impacts of these companies on people and the environment, is made publicly available. The CSRD also aims for reported information to be comparable, reliable, relevant, and easy for users to find, whilst making disclosures digitally accessible, enabling performance comparisons between peers.
What are the main differences compared to the NRFD?
How can companies prepare for the CSRD?
The CSRD directive and the ESRS’ are complex and extensive. Companies need to start preparing now before disclosures are due. DNV’s various support packages help upskill, align and get you started on preparing for the disclosure requirements, whilst simultaneously adding long-term value to your organisation.
The CSRD timeline in detail:
The Commission is adopting a phased approach for implementing the Directive. The CSRD will be implemented as follows:
About DNV:
DNV is an independent assurance and risk management provider, operating in more than 100 countries, with the purpose of safeguarding life, property, and the environment. As a trusted voice for many of the world’s most successful organizations, we help seize opportunities and tackle the risks arising from global transformations. We use our broad experience and deep expertise to advance safety and sustainable performance, set industry standards, and inspire and invent solutions.
Do you have more questions about preparing for the CSRD?
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