The Corporate Sustainability Reporting Directive (CSRD) is an initiative by the European Union (EU) to align sustainability reporting with financial reporting, set to be phased in starting in 2024:
Which companies are impacted?
All large companies established in an EU Member State that meet 2 or more of the below requirements will be subject to CSRD:
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- €40 million in net turnover;
- €20 million on the balance sheet;
- 250 or more employees.
What are the timelines for implementation?
CSRD will impact entities in a phased approach:
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- Large companies already subject to the Non-Financial Reporting Directive (NFRD) will be impacted first: from 2024, with their first CSRD-compliant annual report published in 2025.
- Large companies not subject to the NFRD will then need to comply from 2025, with their first annual CSRD-compliant annual report published in 2026.
- Listed SMEs will also be in scope from 2026, with their first annual CSRD-compliant report published in 2027. An opt-out may be possible for listed SMEs, exempting them from reporting until 2028.
Reporting Structure:
Show full Reporting Structure PDF – Corporate Sustainability Reporting Directive (CSRD)
Examples of data for CSRD reporting
Anti-corruption and Bribery:
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- Anti-corruption Policies: Description of anti-corruption policies, training, and compliance monitoring.
- Incidents of Corruption: Number of confirmed incidents and actions taken in response.
- Legal Compliance: Fines and other sanctions for non-compliance with laws and regulations.
Diversity on Company Boards:
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- Board Diversity: Breakdown of board members by gender, age, ethnicity, educational and professional background.
- Diversity Policies: Description of diversity and inclusion policies, objectives, and outcomes.
Governance Factors:
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- Corporate Governance Structure: Description of the governance structure, roles, and responsibilities.
- Ethical Conduct: Description of code of ethics, ethical conduct training, and monitoring.
Additional Reporting:
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- Science-Based Targets: Progress towards science-based targets for reducing greenhouse gas emissions.
- Climate Risk-Related Reporting: Assessment of climate-related risks and opportunities, and strategies to address them.
Environmental Matters:
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- Greenhouse Gas Emissions: Total emissions, emissions intensity, and reductions.
- Energy Consumption: Total energy consumption, energy efficiency measures, and renewable energy usage.
- Water Usage: Total water withdrawal, water recycling rates, and water-saving measures.
- Waste Management: Total waste generated, recycling rates, and waste disposal methods.
Social Matters and Treatment of Employees:
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- Employee Health and Safety: Accident rates, occupational diseases, and safety training.
- Employee Training and Education: Training hours per employee, programs for skill management, and lifelong learning.
- Labor Practices: Collective bargaining agreements, employee turnover rates, and employee satisfaction surveys.
- Community Engagement: Community development programs, local hiring, and charitable contributions.
Respect for Human Rights:
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- Human Rights Due Diligence: Policies, processes, and outcomes of human rights assessments.
- Supply Chain Management: Supplier assessments on human rights, and actions taken against suppliers violating human rights.
- Discrimination and Harassment: Number of incidents and actions taken to prevent discrimination and harassment.