What is the CSRD?

The Corporate Sustainability Reporting Directive (CSRD) is the EU’s updated legal framework for corporate sustainability reporting. It replaces the Non-Financial Reporting Directive (NFRD) and significantly expands who needs to report, what needs to be disclosed, and how reporting is conducted.

The CSRD introduces mandatory sustainability metrics for large companies. These metrics must be structured according to the European Sustainability Reporting Standards (ESRS) and integrated into the company’s annual management report.

A core requirement is the double materiality assessment: companies must assess both how sustainability topics affect them financially (financial materiality) and how they impact people and the planet (impact materiality).

In April 2025, the EU confirmed a two-year delay for the rollout of reporting for most mid-sized and smaller companies (the “Stop the Clock” decision). However, the core principles of the CSRD, including the ESRS and double materiality, remain in place.