Final Corporate Sustainability Reporting Directive text adopted

The Corporate Sustainability Reporting Directive (CSRD) was adopted on 28 November 2022. CSRD will expand and standardise the existing rules on non-financial reporting and seek to increase the comparability of data. CSRD and the European Sustainability Reporting Standards (ESRS) will have a significant impact on companies’ reporting and wider approaches to sustainability, and seeks to place sustainability reporting on the same footing to financial reporting. Once CSRD enters into force, Member States will have 18 months to implement the new rules. The scope of CSRD will affect a large number of EU companies, as well as some non-EU companies.   

Additionally, the first set of draft ESRS were sent to the European Commission on 23 November 2022 by the European Financial Reporting Advisory Group (EFRAG). The ESRS apply to companies in scope of CSRD and seek to provide additional detail about a company’s sustainability-related impacts, risks and opportunities. 

Download this At a glance to see our summary of CSRD, the draft ESRS and their potential implications for firms.