Chapter 2:
What is the EU CSRD
As previously stated, the European Union’s Corporate Sustainability Directive (EU CSRD) is a framework which certain companies must comply with in terms of disclosure of sustainability and ESG-related reporting and metrics.
Replacing the Non-Financial Reporting Directive (NFRD) established in 2014, the CSRD is much larger in scope, affecting nearly 42,500 companies who have headquarters in the European Union. This directive also requires much more detailed disclosure information as defined by the European Sustainability Reporting Standards (ESRS), than the NFRD. (We know what you’re thinking; not another acronym! Trust us, it’ll all become crystal clear soon.)
How is the ESRS related to the CSRD? Simply put, the ESRS are the specific standards organisations must follow to comply with the CSRD framework. These range from a variety of topics including climate change, water resources, workers in the value chain, business conduct and much more, which leads us to the requirements under this framework.
How much do you really know about the CSRD? Take our quiz now and find out!