The Corporate Sustainability Reporting Directive (CSRD) will expand the scope of companies required to prepare and publish sustainability or non-financial reports alongside their annual reports, including specific information in the management report.
Under the directive, sustainability reports will be required for all large companies that meet at least two of the following criteria: 250 employees, 20 million euros in assets, 40 million euros in revenue, and all companies listed on regulated stock exchanges. Sustainability reports will have to be prepared in accordance with the EU’s new sustainability reporting standards, which will cover environmental, social, human rights, and various governance aspects.
The new standards are set to be adopted in June 2023 and are being developed by the European Financial Reporting Advisory Group (EFRAG).
