Now adopted by the EU: The Corporate Sustainability Reporting Directive (CSRD) amends and significantly expands the existing EU requirements for sustainability reporting – both in terms of the number of companies in scope and the nature of the sustainability reporting. It is estimated that the scope would extend from less than 12,000 to nearly 50,000 companies just in the EU. The European Commission originally proposed the CSRD in April 2021. On November 10, 2022, the EU Parliament adopted the CSRD with strong support. Most recently, on November 28, 2022, the CSRD was formally adopted by the European Council.
Looking ahead, the CSRD will be signed and published in the EU Official Journal and take effect 20 days later. Thereafter, member states will have 18 months to transpose the directive into their local law for it to become effective for financial years 2024, as planned.
Company type |
Effective date | Year of initial application |
---|---|---|
Companies subject to the existing Non-Financial Reporting Directive (NFRD) |
January 1, 2024 |
2025 (i.e. companies would have to issue their 2024 sustainability report in 2025) |
Large companies not currently subject to the NFRD |
January 1, 2025 |
2026 |
Small and medium-sized listed companies |
January 1, 2026 | 2027 |
Have an option to opt out of CSRD reporting until 2029 (i.e. effective date of 2028) |
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Small and non-complex credit institutions and captive insurance entities | January 1, 2026 | 2027 |
Ultimate non-EU parent companies | 2028 | 2029 |
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