Corporate Sustainability Reporting Directive
The Corporate Sustainability Reporting Directive (CSRD) is a directive by the European Union that replaces the Non-Financial Reporting Directive (NFRD), significantly expanding the scope and depth of corporate sustainability reporting requirements. It requires companies to report on the impact of their activities on the environment and society and mandates the audit of the reported information to ensure reliability and transparency.
This directive is part of the EU’s broader goal to integrate sustainability into corporate governance and align with the European Green Deal objectives.
Scope of Application:
-> CSRD applies to all large EU companies, all listed companies (except micro-enterprises), and non-EU companies operating within the EU. This includes companies meeting certain size thresholds under Directive 2013/34/EU
-> Small and medium-sized enterprises (SMEs) may opt into voluntary reporting based on future standards
Double Materiality Principle:
Companies are required to report on the financial risks and opportunities arising from sustainability issues and their impact on society and the environment. This approach is central to the European Sustainability Reporting Standards (ESRS)
Reporting Standards (ESRS):
Companies must comply with European Sustainability Reporting Standards (ESRS). These cover general requirements, disclosures, and topic-specific issues, such as climate change (E1), biodiversity (E4), and business conduct (G1). The ESRS were developed by EFRAG based on stakeholder input
Streamlined Reporting:
CSRD aims to reduce reporting burdens by phasing in requirements and ensuring compatibility with existing regulations like the Taxonomy Regulation and Sustainable Finance Disclosure Regulation (SFDR)
Alignment with International Standards:
ESRS are aligned with global frameworks like the GRI Standards and ISSB to ensure interoperability and reduce redundancy
Materiality Assessment:
Companies must perform a robust materiality assessment, identifying significant sustainability impacts, risks, and opportunities across their operations and value chains
Digital Reporting and Assurance:
Encourages the use of digital taxonomies to facilitate seamless data integration and emphasizes external assurance of sustainability data to enhance reliability
*UPDATE:
The European Commission's "Simplification Omnibus" package, introduced in February 2025, proposes significant changes to the Corporate Sustainability Reporting Directive (CSRD) to reduce administrative burdens and enhance competitiveness.
Key proposed changes:
1/ Reduced Scope of Applicability
To applicable only to companies with over 1,000 employees and either:
-> €50 million in net turnover, or
-> €25 million in total assets.
2/ Delayed Reporting Deadlines
-> Second-wave companies: Reporting postpone from 2026 to 2028.
-> Third-wave companies: Reporting postpone from 2027 to 2029.
3/ Simplified Reporting Standards (ESRS)
Revisions to the European Sustainability Reporting Standards include:
-> Reduction in required data points
-> Elimination of sector-specific standards
-> Prioritization of quantitative over narrative disclosures
4/ Voluntary Reporting for Smaller Companies
Companies with fewer than 1,000 employees are no longer mandated to report but can opt to do so using a simplified voluntary standard developed by EFRAG
5/ Assurance Requirements Maintained at Limited Level
The anticipated shift from limited to reasonable assurance has been removed. Companies will continue with limited assurance, reducing compliance costs.
The European Commission's "Stop-the-Clock" proposal, part of the broader Omnibus Simplification Package, intend to agree on postponement of the directive.
🔗 EP, EC, EFRAG
This directive is part of the EU’s broader goal to integrate sustainability into corporate governance and align with the European Green Deal objectives.
Scope of Application:
-> CSRD applies to all large EU companies, all listed companies (except micro-enterprises), and non-EU companies operating within the EU. This includes companies meeting certain size thresholds under Directive 2013/34/EU
-> Small and medium-sized enterprises (SMEs) may opt into voluntary reporting based on future standards
Double Materiality Principle:
Companies are required to report on the financial risks and opportunities arising from sustainability issues and their impact on society and the environment. This approach is central to the European Sustainability Reporting Standards (ESRS)
Reporting Standards (ESRS):
Companies must comply with European Sustainability Reporting Standards (ESRS). These cover general requirements, disclosures, and topic-specific issues, such as climate change (E1), biodiversity (E4), and business conduct (G1). The ESRS were developed by EFRAG based on stakeholder input
Streamlined Reporting:
CSRD aims to reduce reporting burdens by phasing in requirements and ensuring compatibility with existing regulations like the Taxonomy Regulation and Sustainable Finance Disclosure Regulation (SFDR)
Alignment with International Standards:
ESRS are aligned with global frameworks like the GRI Standards and ISSB to ensure interoperability and reduce redundancy
Materiality Assessment:
Companies must perform a robust materiality assessment, identifying significant sustainability impacts, risks, and opportunities across their operations and value chains
Digital Reporting and Assurance:
Encourages the use of digital taxonomies to facilitate seamless data integration and emphasizes external assurance of sustainability data to enhance reliability
*UPDATE:
The European Commission's "Simplification Omnibus" package, introduced in February 2025, proposes significant changes to the Corporate Sustainability Reporting Directive (CSRD) to reduce administrative burdens and enhance competitiveness.
Key proposed changes:
1/ Reduced Scope of Applicability
To applicable only to companies with over 1,000 employees and either:
-> €50 million in net turnover, or
-> €25 million in total assets.
2/ Delayed Reporting Deadlines
-> Second-wave companies: Reporting postpone from 2026 to 2028.
-> Third-wave companies: Reporting postpone from 2027 to 2029.
3/ Simplified Reporting Standards (ESRS)
Revisions to the European Sustainability Reporting Standards include:
-> Reduction in required data points
-> Elimination of sector-specific standards
-> Prioritization of quantitative over narrative disclosures
4/ Voluntary Reporting for Smaller Companies
Companies with fewer than 1,000 employees are no longer mandated to report but can opt to do so using a simplified voluntary standard developed by EFRAG
5/ Assurance Requirements Maintained at Limited Level
The anticipated shift from limited to reasonable assurance has been removed. Companies will continue with limited assurance, reducing compliance costs.
The European Commission's "Stop-the-Clock" proposal, part of the broader Omnibus Simplification Package, intend to agree on postponement of the directive.
🔗 EP, EC, EFRAG
- Categories
- CSRD (Corporate Sustainability Reporting Directive)Non-financial ReportingESG Strategies & ReportingESG ReportsESRS (European Sustainability Reporting Standards)
- Legislation instrument
- Directive
- Pillars
- EnvironmentalSocialGovernance
- Audience
- Business
- Legislation status
- In Force
- Applicable area
- EU
- Directive (EU) 2022/2464
Timeline
- ProposedApr 21, 2021
- ApprovedNov 28, 2022
- AdoptedNov 28, 2022
- PublishedDec 16, 2022
- In ForceJan 5, 2023
- In ApplicationJan 1, 2024
- Last UpdatedApr 17, 2025
*UPDATE
On the April 17, 2025, the European Commission's "Stop-the-Clock" proposal has been approved by both the European Parliament and the Council of the European Union. The directive is now awaiting formal adoption and publication in the EU Official Journal to enter into force:
-> The application of CSRD requirements for large companies that have not yet started reporting, as well as listed SMEs, is postponed by two years. Companies originally required to report from 2026 will now do so from 2028.
The CSRD's standards are phased - start applying between 2024 and 2028, as follows:
-> From 1 January 2024 for large public-interest companies (with over 500 employees) already subject to the non-financial reporting directive, with reports due in 2025 (for financial Year 2024)
-> From 1 January 2025 for large companies (with more than 250 employees and/or €50 million in turnover and/or €25 million in total assets = min.2 of them) not presently subject to the non-financial reporting directive, with reports due in 2026 (for financial Year 2025)
-> From 1 January 2026 for listed SMEs and other undertakings, with reports due in 2027 (for financial Year 2026). SMEs can opt-out until 2028.
-> From 1 January 2028 for non-EU companies with substantial activity in the EU (net turnover of more than €150 million in the EU and at least one subsidiary or branch in the EU exceeding certain thresholds), with reports due in 2029 (for financial year 2028).
CSRD requires EU Member States to transpose its provisions into national law by 6 July 2024.
As of 30 September 2024, the transposition status across Member States is as follows:
Transposed into National Law:
1. Bulgaria: Adopted amendments to the Accounting Act & the Independent Financial Audit Act on 14 August 2024 & 4 September 2024
2. Croatia: Transposed via amendments to the Accounting Act, officially adopted on 30 June 2024
3. Denmark: Transposition completed through updates to the Financial Statements Act in May 2024
4. Finland: CSRD incorporated into national law with legislative updates published on 15 July 2024
5. France: Adopted amendments on 25 June 2024, incorporating CSRD into existing sustainability reporting laws
6. Germany: Implemented via the Corporate Sustainability Reporting Law, enacted on 7 August 2024
7. Hungary: Transposed by amendments to the Accounting Act, finalized on 20 July 2024
8. Ireland: Legislative changes adopted through the Companies (Sustainability Reporting) Bill, enacted on 10 August 2024
9. Italy: Adopted on 1 August 2024, updating the Civil Code to include CSRD provisions
10. Latvia: Amendments to the Annual Accounts and Consolidated Annual Accounts Law adopted on 28 July 2024
11. Lithuania: Finalized transposition on 22 July 2024, incorporating CSRD requirements into corporate law
12. Netherlands: Adopted legislation on 25 July 2024, revising the Dutch Civil Code
13. Romania: Updates to the Accounting Law adopted on 10 August 2024
14. Slovakia: Passed legislation on 18 July 2024, amending the Act on Accounting
15. Sweden: Legislative updates completed on 12 July 2024 to align with CSRD
In Process of Transposition:
16. Cyprus: Draft legislation under review, expected adoption in early 2025
17. Czech Republic: Public consultation ongoing; draft amendments to the Accounting Act are under discussion
18. Estonia: Parliament is deliberating proposed amendments to the Accounting Act
19. Luxembourg: Draft law submitted to Parliament; expected adoption in late 2024 or early 2025
20. Poland: Public consultations completed, and draft legislation submitted to Parliament in October 2024
21. Slovenia: Draft law under discussion in Parliament, with expected adoption by Q1 2025
22. Spain: Draft legislation is in final stages of parliamentary approval, expected adoption by late 2024
Not Yet Started:
23. Austria: No draft legislation or consultations initiated as of October 2024
24. Belgium: Transposition efforts have not yet begun; stakeholders await draft legislation
25. Greece: No updates on transposition progress; no public consultations initiated
26. Malta: No draft legislation or significant updates reported
27. Portugal: No transposition progress reported; legislative work remains pending
🔗 Ropes & Gray LLP reports in an updated EU-wide CSRD transposition tracker
-> Link: https://shorturl.at/c2N4v
-> Tracker: https://shorturl.at/D1e2T (as of September 30, 2024)
On the April 17, 2025, the European Commission's "Stop-the-Clock" proposal has been approved by both the European Parliament and the Council of the European Union. The directive is now awaiting formal adoption and publication in the EU Official Journal to enter into force:
-> The application of CSRD requirements for large companies that have not yet started reporting, as well as listed SMEs, is postponed by two years. Companies originally required to report from 2026 will now do so from 2028.
The CSRD's standards are phased - start applying between 2024 and 2028, as follows:
-> From 1 January 2024 for large public-interest companies (with over 500 employees) already subject to the non-financial reporting directive, with reports due in 2025 (for financial Year 2024)
-> From 1 January 2025 for large companies (with more than 250 employees and/or €50 million in turnover and/or €25 million in total assets = min.2 of them) not presently subject to the non-financial reporting directive, with reports due in 2026 (for financial Year 2025)
-> From 1 January 2026 for listed SMEs and other undertakings, with reports due in 2027 (for financial Year 2026). SMEs can opt-out until 2028.
-> From 1 January 2028 for non-EU companies with substantial activity in the EU (net turnover of more than €150 million in the EU and at least one subsidiary or branch in the EU exceeding certain thresholds), with reports due in 2029 (for financial year 2028).
CSRD requires EU Member States to transpose its provisions into national law by 6 July 2024.
As of 30 September 2024, the transposition status across Member States is as follows:
Transposed into National Law:
1. Bulgaria: Adopted amendments to the Accounting Act & the Independent Financial Audit Act on 14 August 2024 & 4 September 2024
2. Croatia: Transposed via amendments to the Accounting Act, officially adopted on 30 June 2024
3. Denmark: Transposition completed through updates to the Financial Statements Act in May 2024
4. Finland: CSRD incorporated into national law with legislative updates published on 15 July 2024
5. France: Adopted amendments on 25 June 2024, incorporating CSRD into existing sustainability reporting laws
6. Germany: Implemented via the Corporate Sustainability Reporting Law, enacted on 7 August 2024
7. Hungary: Transposed by amendments to the Accounting Act, finalized on 20 July 2024
8. Ireland: Legislative changes adopted through the Companies (Sustainability Reporting) Bill, enacted on 10 August 2024
9. Italy: Adopted on 1 August 2024, updating the Civil Code to include CSRD provisions
10. Latvia: Amendments to the Annual Accounts and Consolidated Annual Accounts Law adopted on 28 July 2024
11. Lithuania: Finalized transposition on 22 July 2024, incorporating CSRD requirements into corporate law
12. Netherlands: Adopted legislation on 25 July 2024, revising the Dutch Civil Code
13. Romania: Updates to the Accounting Law adopted on 10 August 2024
14. Slovakia: Passed legislation on 18 July 2024, amending the Act on Accounting
15. Sweden: Legislative updates completed on 12 July 2024 to align with CSRD
In Process of Transposition:
16. Cyprus: Draft legislation under review, expected adoption in early 2025
17. Czech Republic: Public consultation ongoing; draft amendments to the Accounting Act are under discussion
18. Estonia: Parliament is deliberating proposed amendments to the Accounting Act
19. Luxembourg: Draft law submitted to Parliament; expected adoption in late 2024 or early 2025
20. Poland: Public consultations completed, and draft legislation submitted to Parliament in October 2024
21. Slovenia: Draft law under discussion in Parliament, with expected adoption by Q1 2025
22. Spain: Draft legislation is in final stages of parliamentary approval, expected adoption by late 2024
Not Yet Started:
23. Austria: No draft legislation or consultations initiated as of October 2024
24. Belgium: Transposition efforts have not yet begun; stakeholders await draft legislation
25. Greece: No updates on transposition progress; no public consultations initiated
26. Malta: No draft legislation or significant updates reported
27. Portugal: No transposition progress reported; legislative work remains pending
🔗 Ropes & Gray LLP reports in an updated EU-wide CSRD transposition tracker
-> Link: https://shorturl.at/c2N4v
-> Tracker: https://shorturl.at/D1e2T (as of September 30, 2024)
General information
About Law
EnglishInformation
FAQ1.94 MB
EnglishInformation
Local transpositions
Zákon č. 431/2002 Z. z. o účtovníctve v znení neskorších predpisov950 kB
SlovakSlovakiaRegulationIn Force Jun 1, 2024
Regulatory Instruments
European Sustainability Reporting Standards (ESRS)3.67 MB
EnglishDelegated ActIn Force Jan 1, 2024
ESRS 1 - General Requirements1.02 MB
EnglishDelegated Act
ESRS E1 - Climate Change1.46 MB
EnglishDelegated Act
ESRS E2 - Pollution310 kB
EnglishDelegated Act
ESRS E3 - Water and Marine Resources306 kB
EnglishDelegated Act
ESRS E4 - Biodiversity453 kB
EnglishDelegated Act
ESRS E5 - Circular Economy319 kB
EnglishDelegated Act
ESRS S1 - Own Workforce787 kB
EnglishDelegated Act
ESRS S2 Value Chain Workers635 kB
EnglishDelegated Act
ESRS G1 - Business Conduct346 kB
EnglishDelegated Act
Supportive documents
Materiality Assessment1.68 MB
EnglishGuidance
Value Chain1.38 MB
EnglishGuidance
ESRS DataPoints - worksheet251 kB
EnglishSupportive document
ESRS DataPoints - Explanatory Note698 kB
EnglishGuidance
Voluntary Sustainability Reporting Standard (VSME)1.67 MB
EnglishGuidance
Q&A - live platform
EnglishQ&A
EFRAG - State of Play Q2 20242.13 MB
EnglishQ&A
XBRL tagging rules for sustainability reporting1.56 MB
EnglishSupportive document