The EU’s CSRD (Corporate Sustainability Reporting Directive) replaces the previous Non-Financial Reporting Directive (NFRD). With the CSRD, more companies are required to report their sustainability data more broadly and in greater detail. The directive applies to all large companies, listed small and medium-sized enterprises (SMEs), as well as small credit institutions and banks.
In the future, sustainability reporting will follow the ESRS standards prepared for the directive. There are 12 European Sustainability Reporting Standards, and among these, ESRS 2 General disclosures is a mandatory standard for all companies subject to the CSRD. For other standards, companies assess which standards are relevant to their operations using a double materiality analysis. In addition to the standards on general company information, there are five environmental impact standards, four social impact standards, and one governance-related standard.