Does the EU’s Corporate Sustainability Reporting Directive (CSRD) apply to your business?

Not only will the European Union’s (EU) Corporate Sustainability Reporting Directive (CSRD) directly impact the ESG reporting requirements of over 50,000 companies, but it will also have cascading effects for all entities that do business with these companies.

The CSRD requires disclosures based on double materiality — assessing impact and financial materiality — and also requires that companies adopt the European Sustainability Reporting Standards (ESRS). Third-party assurance will be required — limited assurance at first, followed by reasonable assurance in subsequent years.

The scope for the CSRD is farther reaching than previous EU directives — and companies may be surprised to find out they are required to comply. Furthermore, the level of information required by the CSRD means companies need to understand their compliance obligations now so they can start planning and allocating resources to ensure compliance and business continuity. 

Use the checklist below as a guide to understanding the CSRD reporting requirements. To learn more about the expanded ESG reporting requirements through the CSRD, check out BDO’s Q&A