The Corporate Sustainability Reporting Directive (CSRD) is now in effect, with disclosure requirements phasing in between 2025 and 2029 for companies within the European Union (EU) and ultimately extending to non-EU companies with significant operations in the EU. The CSRD significantly expands the scope of both the companies affected and their required environmental, social and governance (ESG) disclosures, in comparison to the 2014 Non-Financial Reporting Directive (NFRD). The deadline for member States to transpose the Directive is July 6, 2024.
Affected companies should prepare to make significant changes to the breadth and detail of sustainability information they disclose and their processes for developing and certifying the information.