Corporate Sustainability Reporting (CSRD)

The Corporate Sustainability Reporting Directive (CSRD) was officially enacted on 5th January 2023, representing a significant milestone in the European Union’s (EU) efforts to promote sustainable business practices. It is one of the cornerstones of the European Green Deal and is integrated together with other EU initiatives, such as the EU Taxonomy and the Sustainable Finance Disclosure Regulation. A key element of the CSRD is the European Sustainability Reporting Standards (ESRS), which were adopted by the European Commission through a delegated Act on July 2023.

As one of the primary instruments facilitating the evaluation of sustainability performance by organizations, consumers, and other relevant stakeholders, the CSRD demonstrates the EU’s commitment to improving the quality, comparability, and transparency of sustainability reporting within its jurisdiction. The directive highlights the increasing prominence of Environmental, Social, and Governance (ESG) factors in business decision-making processes and emphasizes the necessity for enhanced accountability in corporate sustainability practices.