CSRD

The Corporate Sustainability Reporting Directive (CSRD) is the EU framework that requires companies to disclose information on their environmental and social impacts, and on how sustainability issues affect their business. It replaces and substantially extends the older Non-Financial Reporting Directive (NFRD), increasing both the number of companies in scope and the detail required.

Companies report against the European Sustainability Reporting Standards (ESRS), which set out what to disclose across environment, social, and governance topics. A defining feature is double materiality: companies report both how sustainability matters affect the company (financial materiality) and how the company affects people and the environment (impact materiality).

Reported sustainability information must be digitally tagged and is subject to assurance, starting with limited assurance. The directive is being phased in by company size and type over several reporting years. The scope and timing have been the subject of EU simplification proposals, so the exact obligations for a given company depend on its cohort and the latest legislative text.

For careers, CSRD has driven demand for sustainability reporting, ESG data, and assurance skills across corporates, auditors, and consultancies.