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The new EU Corporate Sustainability Reporting Directive is an extension of the Non-Financial Reporting Directive (NFRD), which has been in force since 2014 and obliges certain companies in the EU to prepare reports on their contribution to sustainability so that stakeholders can better assess it.

This reporting obligation has now been significantly extended by the CSRD Directive. It came into force on January 5, 2023 and is to be implemented by the member states within 18 months.

Initially, companies with 500 employees or more will be affected (from the financial year beginning January 1, 2024); all other large, medium-sized and small companies - with the exception of small companies - from the financial year beginning January 1, 2025). The aim is to increase the accountability of European companies with regard to sustainability aspects and to introduce binding reporting standards at EU level for the first time.

Rules and requirements

  1. Extended, standardized reporting obligation: The measurability and comparability of the information is also to be improved through greater quantification of the report content by means of key figures. The CSRD is intended to close existing gaps in the reporting regulations and expand sustainability reporting overall.

  2. New understanding of materiality: The CSRD enshrines the so-called "dual materiality", according to which companies are obliged to report both on the impact of their own business operations on people and the environment and on the impact of sustainability aspects on the company.


The following are to be published

  1. a brief description of the company's business model and strategy, including the risks associated with sustainability aspects, the associated opportunities for the company and how these are translated into strategy

  2. Climate action to comply with the Paris Agreement, including, where appropriate, greenhouse gas emission reduction targets for at least 2030 and 2050

  3. a description of the role of the administrative, management and supervisory bodies in connection with sustainability aspects

  4. a description of the company's sustainability policy and what incentive systems are in place within the company to implement it;

  5. a description of the main actual or potential negative impacts associated with the company's own operations and with its value chain, including its products and services, its business relationships and its supply chain

Requirements for companies

  1. External audit: In future, sustainability reporting, like financial reporting, must be audited externally. The EU Commission is setting auditing standards for this.

  2. Easier access to sustainability information: In future, the information is to be published as a mandatory part of the management report in the company balance sheet. This reflects the importance of sustainability reporting, which is to be gradually given the same status as traditional financial reporting.