The Workshop
The Corporate Sustainability Reporting Directive (CSRD) is an EU regulation that significantly expands corporate sustainability reporting requirements beyond its predecessor, the Non-Financial Reporting Directive. Adopted in January 2023 as part of the European Green Deal, the CSRD establishes mandatory reporting standards for large companies operating in or affecting the EU. This conference covers the regulatory framework, the new European Sustainability Reporting Standards (ESRS), the concept of double materiality, and phased implementation timelines, providing attendees with both strategic overview and practical context for organizational compliance.
Why It Matters
The CSRD represents a fundamental shift in corporate accountability, requiring companies to disclose both the impact of sustainability factors on their financial performance and the impact of their operations on the environment and society. For large EU companies and non-EU companies with significant EU operations, CSRD compliance is not optional but legally mandated. Organizations must begin reporting on 2024 financial year data in 2025 reports, making understanding CSRD requirements essential for corporate strategy, risk management, and stakeholder communication. Non-compliance carries regulatory risks and reputational consequences in an increasingly ESG-focused business environment.
Good to Know
The CSRD applies to all 'large' EU listed companies exceeding at least two of three criteria: more than 250 employees, net turnover exceeding €40 million, or total assets over €20 million. Non-EU companies with €150 million or more in EU turnover and at least one subsidiary or branch must also comply. The first phased application begins in January 2024 for the largest companies, with their first reports due in 2025. Companies must report according to European Sustainability Reporting Standards (ESRS), adopted by the European Commission in July 2023. External auditors are required to verify reported information, ensuring data credibility and accountability.
What to Expect
CSRD implementation follows a phased approach: large EU listed companies report on their 2024 financial year in 2025 reports; non-listed EU large companies report on 2025 data in 2026; and large financial institutions report on 2025 data in 2026 reports. Organizations must assess double materiality (both company impact on sustainability and sustainability impact on company performance), identify relevant ESRS standards applicable to their industry and operations, collect and verify sustainability data, and prepare auditable sustainability statements. The process requires cross-functional coordination, enhanced data systems, and engagement with external assurance providers to meet regulatory timelines and standards.