3: Corporate Sustainable Reporting Directive, CSRD

From NFRD to CSRD.The new Corporate Sustainability Reporting Directive (CSRD) revises and strengthens the current rules (NFRD). The requirements are extended to all large companies and all listed companies in the EU.

To comply with the CSRD, companies have to to publish regular reports on the social and environmental impacts of their activities in line with the EU sustainability reporting standards.

More detailed reporting requirements and requirements to report under mandatory EU standards are being introduced and developed by the European Financial Reporting Advisory Group, EFRAG. A first set of these standards, the European Sustainability Reporting Standards, (ESRS) were implemented in July 2023.

The ESRS comprises 13 standards related to environmental, social and governance issues. They include requirements to describe strategy, objectives, performance and value chains, as well as to define materiality and set requirements for the structure of reporting. ESRS E4 deals specifically with Biodiversity and ecosystems.