What you need to know to prepare your organisation for the EU’s Corporate Sustainability Reporting Directive 

The Corporate Sustainability Reporting Directive (CSRD) is an ESG (environmental, social and governance) standard enacted by the EU. It is designed to make corporate sustainability reporting more common, consistent and standardised like financial accounting and reporting. 

The new directive’s impact is far-ranging and essentially modernises and strengthens the social and environmental information that companies have to report. 

Why do I need to think about it now?

Because CSRD entered into force on July 25, 2024. EU member states have until July 26, 2026 to transpose the Directive into national law. On July 26, 2027, the rules will start to apply to companies, with a gradual phase-in between 3 and 5 years after entry into force. 

CSRD will require all large and listed companies to publish regular reports on the social and environmental risks they face, and on how their activities impact people and the environment. It will dramatically increase the number of businesses that are subject to mandatory ESG disclosures from 15,000 to over 50,000. It will also impact non-EU companies, called third-country companies, that have substantial activity in the EU. 

Businesses need to prepare now as successful reporting will require a holistic approach that involves the entire organisation.