The Corporate Sustainability Disclosure Directive (CSRD) will amend NFRD requirements by extending the scope of sustainability reporting obligations.
The CSRD will apply to:
Large EU-based companies meeting 2 out of 3 of the following criteria:
Revenues > EUR 40 million
Total assets > EUR 20 million
> 250 employees
All companies listed on EU regulated markets
Non-EU companies generating a net turnover of €150 million in the EU and that have at least one subsidiary or branch in the EU
Listed SMEs. However, these companies will be granted more time to adapt.
However, the reporting timeline will vary depending on the company type.
Companies that are already under the scope of the NFRD will have to report against the CSRD starting on January 2024. Other large companies will come under the scope as of January 2025, with reporting due in 2026. Reporting for SMEs will start even later, in 2027, and SMEs will be able to opt out until 2028.
The CSRD will also require all sustainability reports to be subject to an external independent audit, which is currently optional under the NFRD.
The information disclosed will have to be digitally tagged by companies, as it will need to be machine-readable to integrate with the upcoming European Single Access Point (for more information on what the ESAP is, see the dedicated FAQ).