CSRD
Corporate Sustainability Reporting Directive
Definition
The EU directive requiring large companies and listed SMEs to report on sustainability matters using the European Sustainability Reporting Standards (ESRS). CSRD significantly expands the scope and depth of non-financial reporting compared to its predecessor, the Non-Financial Reporting Directive (NFRD), introducing double materiality and mandatory assurance.
Regulatory Context
CSRD is being phased in from 2024 for large public-interest entities, extending to large companies in 2025 and listed SMEs in 2026. The reported data feeds into the SFDR framework, providing the sustainability information that financial market participants need for their own disclosures.