What do you need to report under the CSRD?

The EU’s Corporate Sustainability Reporting Directive requires companies to report on lifetime environmental impacts.

The EU’s Corporate Sustainability Reporting Directive (CSRD) is a new law that requires large companies to report on their sustainability performance. Here we summarize its key points.

The CSRD is a significant step forward for sustainability reporting in the EU. It will provide investors and other stakeholders with more comprehensive and comparable information about the sustainability performance of large companies. This information can be used to make informed decisions about where to invest and to hold companies accountable for their sustainability impacts.

Reporting requirements

The CSRD requires companies to report on a range of sustainability issues, including:

• Environmental impacts, such as greenhouse gas emissions, water use, and waste generation.
• Social impacts, such as employee diversity and working conditions.
• Governance factors, such as the company’s board structure and risk management policies.

The CSRD also requires companies to report on their efforts to reduce their environmental impacts. This includes measures to improve energy efficiency, reduce waste, and promote the use of sustainable materials.

Ensuring quality and consistency

Companies must use internationally recognized standards for life cycle assessment (LCA) to report on the environmental impacts of their products and services.

LCA is a comprehensive approach to assessing the environmental impacts of a product or service over its entire life cycle, from the extraction of raw materials to the disposal of the product or service at the end of its life.

Companies must also have their sustainability reports audited by an independent auditor. This will help to ensure the accuracy and reliability of the reported information.

Who needs to comply?

The CSRD applies to large companies with more than 500 employees and more than €40 million in annual turnover. Companies must start reporting from 1 January 2024 for financial years beginning on or after 1 January 2024.

The CSRD aims to provide investors and other stakeholders with more comprehensive and comparable information about the sustainability performance of large companies. This information can be used to make informed decisions about where to invest and to hold companies accountable for their sustainability impacts.

Learn more

Read: the European Corporate Sustainability Reporting Directive

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