CSRD (Corporate Sustainability Reporting Directive) is a new directive developed with the purpose of making sustainability disclosures by European companies or foreign companies with significant operations in the EU, more comprehensive and comparable and aligned with the rigor and accountability of financial accounting and reporting. It is part of the European Union (EU) Action Plan on Financing Sustainable Growth (2018) and EU Green Deal (2019). These larger initiatives build on the understanding that the path to more just and sustainable economies requires a massive shift in investment priorities. They are focused on creating a common taxonomy and more consistent flow of standardized information from companies to investors and other stakeholders to help drive sustainability in investment decision-making.
The CSRD replaces the Non-Financial Reporting Directive (NFRD), expanding the number of companies that will have to comply by nearly four times (from nearly 12,000 to 50,000). In-scope companies will need to prepare a non-financial statement that discloses information on their policies, risks, impacts, and outcomes relating to ESG issues. The statement must be audited by an independent third-party and included in the company’s annual financial report. Organizations across the globe with operations in the EU must start disclosing a variety of data to comply with the first disclosures required in 2025 for reporting year 2024, depending on the size of the organization.
Preparing for the upcoming CSRD legislation can be a daunting task especially when considering it within the quickly evolving EU Taxonomy. Organizations must act quickly to keep up. Join Chris Fenwick, Head of OneTrust’s ESG Center of Excellence and a variety of guest speakers for our Introductory CSRD Masterclass from February to April where we will take a deep dive into all things CSRD. Highlighted sessions include:
- How to prepare and operationalize CSRD initiatives
- CSRD’s role within the EU Taxonomy
- A conversation with a sustainability leader on CSRD
