CSRD (Corporate Sustainability Reporting Directive)

A new directive for companies in the EU

The Corporate Sustainability Reporting Directive (CSRD) of the European Union requires all large companies and all listed small companies (SMEs) to disclose information on their risks and opportunities in the field of ESG (Environmental, Social, and Governance). This helps investors, civil society organizations, consumers and other stakeholders to evaluate the sustainability performance of companies, as part of the European Green Deal.
The Green Deal aims to transform the Union into a modern, resource-efficient and competitive economy with no net emissions of greenhouse gases (GHG) by 2050. It also aims to protect, conserve and enhance the Union’s natural capital, and protect the health and well-being of Union citizens from environment-related risks and impacts. It aims to decouple economic growth from resource use. It ensures that all  citizens participate in a socially just transition whereby no person and no place is left behind.

The required details of the CSRD are described in the separate European Sustainability Reporting Standards (ESRS).

On the Environment:
– Climate Change (ESRS E1)
– Pollutants (ESRS E2)
– Water and marine resources (ESRS E3)
– Biodiversity and ecosystems (ESRS E4)
– Resource use and circular economy (ESRS E5)

On Social issues:
– Own workforce (ESRS S1)
– Workers in the value chain (ESRS S2)
– Affected communities (ESRS S3)
– Consumers and end-users (ESRS S4)

On Governance:
– Business conducts (ESRS G1)


The time line of the CSRD is:

  • 2024, January (report in 2025), all listed companies with more than 500 employees
  • 2025, January (report in 2026), all companies that fulfil 2 of the 3 criteria: (a) more than 250 employees, (b) turnover bigger than € 40 million (c) balance sheet exceeding € 20 million
  • 2026, January (report 2027), all listed small and medium-sized enterprises (SMEs)