What is the CSRD?
The Corporate Sustainability Reporting Directive (CSRD) is a new EU directive, effective as of January 5th 2023, that mandates sustainability reporting for tens of thousands of listed and unlisted companies both within and outside the EU. It builds on many existing voluntary standards and frameworks, like the GRI, Greenhouse Gas Protocol, and TCFD, but goes significantly further, requiring companies to comprehensively report on their ESG impacts, risks and opportunities.
What is ESG?
ESG stands for environmental, social and governance, and comprises three key areas in which companies have been voluntarily reporting non-financial information to their stakeholders. The CSRD mandates this in a standardized format, requiring disclosures within 10 topical standards across the three areas of ESG.