What is Corporate Sustainability Reporting Directive (CSRD)?
Corporate Sustainability Reporting Directive (CSRD) expands the scope of sustainability reporting and replaces the NFRD.
It Applies To:
- All large companies meeting two out of three criteria:
- Over 250 employees.
- Net turnover exceeding €40 million.
- Total assets above €20 million.
- Listed companies, including SMEs (small and medium-sized enterprises), although simplified requirements apply to smaller companies.
- Reporting Standards:
- Companies must comply with the European Sustainability Reporting Standards (ESRS), which detail how to report on ESG performance.
- Reporting must include a detailed account of the company’s Taxonomy-aligned activities and their environmental and social impacts.
EU Taxonomy Regulation:
- Non-financial companies must disclose:
- Proportion of Turnover Aligned with Taxonomy:
- Revenue derived from environmentally sustainable activities.
- Capital Expenditure (CapEx):
- Investments into Taxonomy-aligned projects or assets.
- Operational Expenditure (OpEx):
- Costs related to maintaining assets or activities aligned with the Taxonomy.
- Focus Areas:
- Climate change mitigation and adaptation are currently the main focus, but other environmental objectives will follow.
- Disclosure deadlines depend on company size and type, with staggered implementation based on the adoption of technical screening criteria.