In short: The EU Corporate Sustainability Reporting Directive entered into force on 5 January 2023. It expands the number of companies required to report on sustainability, introduces European Sustainability Reporting Standards (ESRS) and requires assurance of reported information.
What is the CSRD?
The CSRD replaces the Non-Financial Reporting Directive and requires in-scope companies to report on environmental, social and governance matters using common standards.
What is double materiality?
Companies must report both how sustainability issues affect the company (financial materiality) and how the company affects people and the environment (impact materiality).
Why does assurance matter?
Sustainability information must be subject to external assurance, so reliable processes, controls and data quality become essential.
Key takeaways
- CSRD entered into force on 5 January 2023.
- Reporting follows ESRS and a double materiality approach.
- Assurance makes data quality and controls critical.
Frequently asked questions
Does CSRD apply to non-EU companies?
Some non-EU companies with significant EU activity fall within scope under specific conditions.
What are ESRS?
European Sustainability Reporting Standards that define what and how companies report.
How can quality professionals help?
By designing data processes, controls and internal audits for sustainability information.