Has CSRD been passed?

Has CSRD been passed?

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The Corporate Sustainability Reporting Directive (CSRD) has been a hot topic in the sustainability world. Organizations are eager to understand if the directive has been passed and what it means for their reporting requirements. In this article, we will dive into the details of the CSRD, its implications, and the European Sustainability Reporting Standards (ESRSs) that are part of this directive.

What is the Corporate Sustainability Reporting Directive (CSRD)?

The Corporate Sustainability Reporting Directive (CSRD) was passed by the European Union Council on November 28, 2022. This directive aims to standardize corporate sustainability reporting, similar to financial reporting. The CSRD will replace the existing Non-Financial Reporting Directive (NFRD) and Accounting Directive, with expectations to impact over 50,000 companies.

Starting from January 1, 2024, the CSRD will apply to EU companies with over 250 employees, more than €40 million in annual revenue, or over €20 million in total assets. It also applies to publicly-listed companies with smaller thresholds and non-EU companies with significant EU revenue and operations.

European Sustainability Reporting Standards (ESRSs)

The CSRD mandates comprehensive sustainability reporting based on the EU Sustainability Reporting Standards (ESRSs), which have been developed by the European Financial Reporting Advisory Group (EFRAG). These standards are subject to approval by the European Parliament and Council and are set to apply from January 1, 2024, to large EU entities already subject to the EU's non-financial reporting framework.

The ESRSs consist of 12 standards, including two cross-cutting standards applicable to all environmental, social, and governance (ESG) topics. A key feature of the ESRSs is the 'double materiality' standard, which assesses a company's impact on the environment and how environmental issues affect the company financially.

Entities covered by the CSRD will be required to disclose material impacts, risks, and opportunities related to ESG matters. This will provide stakeholders with a clearer understanding of a company's sustainability performance and enable better decision-making.

Compliance and Implementation Timeline

Compliance with the CSRD includes preparing CSRD reports, tracking and disclosing required information, digital data tagging, and obtaining third-party assurance. The implementation timeline includes a gradual application of standards, starting with large businesses in 2024 and extending to international companies by 2028.

It is important for organizations to start preparing for the CSRD early to ensure a smooth transition and compliance with the new reporting requirements. This may involve conducting a materiality assessment, aligning reporting processes with the ESRSs, and implementing necessary systems for data collection and reporting.


The passing of the Corporate Sustainability Reporting Directive (CSRD) marks a significant step towards standardized sustainability reporting in the European Union. The directive, along with the European Sustainability Reporting Standards (ESRSs), will help organizations provide transparent and comparable information on their environmental, social, and governance (ESG) performance.

As sustainability managers, it is crucial to stay updated on the latest developments regarding the CSRD and understand its implications for your organization. By proactively addressing the requirements of the CSRD and implementing effective reporting processes, you can demonstrate your commitment to sustainability and meet the expectations of stakeholders.

Remember, while compliance with the CSRD is essential, the ultimate goal is to drive positive change and contribute to a more sustainable future. Embrace the CSRD as an opportunity to enhance your organization's sustainability efforts and create long-term value.

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