CSRD Reporting Standards – Everything You Need to Know
CSRD reporting standards, known formally as European sustainability reporting standards (ESRS) that are at the forefront of corporate sustainability initiatives, shaping the way organisations disclose environmental, social, and governance (ESG) performance.
What are CSRD reporting standards and requirements?
CSRD, or the Corporate Sustainability Reporting Directive, is a new set of reporting requirements mandated by the European Union. It aims to enhance transparency and accountability by standardising sustainability disclosures for companies operating in EU.
ESRS, or European Sustainability Reporting Standards, are mandatory disclosure standards for companies reporting under CSRD. They aim to standardise ESG aspects in corporate sustainability reporting. ESRS cover all ESG aspects and are divided into cross-cutting standards, topical standards, and sector-specific standards, which are expected to be finalised and adopted by the European Commission by June 2026.
💡 CSRD expands reporting obligations beyond financial performance to include ESG factors, fostering greater stakeholder trust and informed decision-making. CSRD is adding requirements on top of the Non-Financial Reporting Directive (NFRD).
According to the NFRD, large companies must report on:
- environmental matters
- social matters and treatment of employees
- respect for human rights
- anti-corruption and bribery
- diversity on company boards (in terms of age, gender, educational and professional background)
With the Corporate Sustainability Reporting Directive companies need to also report on:
- governance relating to sustainability impacts, risks and opportunities
- impacts of sustainability-related risks and opportunities on the company’s strategy, business and financial planning
- processes for identifying and assessing sustainability impacts, risks and opportunities
- metrics and targets that are used to assess and manage sustainability risks and opportunities
Does CSRD reporting require scope 3 reporting?
CSRD, through the European Sustainability Reporting Standards (ESRS), introduces broader reporting requirements, including reporting of scope 1, scope 2 and scope 3 emissions and reduction targets under ESRS E1 Climate change. However, companies with fewer than 750 employees can omit the Scope 3 emissions during the first reporting year.
Scope 3 emissions encompass indirect emissions generated throughout a company’s value chain, such as those from purchased goods and services, employee commuting, and downstream transportation and distribution.
In conclusion, CSRD and the ESRS reporting standards mark a significant step forward in corporate sustainability disclosure, promoting greater transparency, accountability, and alignment with global sustainability goals.
Stay informed and prepared to meet these evolving reporting requirements to drive positive environmental and social impact while enhancing long-term business resilience. Learn more on how Ecobio Manager can help your company with CSRD reporting.
Is the CSRD the same as TCFD?
While both CSRD and TCFD (Task Force on Climate-related Financial Disclosures) focus on improving corporate transparency regarding sustainability risks and opportunities, they serve distinct purposes.
👉 CSRD is a regulatory framework mandated by the EU, primarily targeting EU-listed companies, and cover a range of environmental, social and governance related topics. CSRD also emphasises the double materiality principle, where companies need to assess both their impact on environment, people and society and the financial impact these sustainability issues have on the company.
In contrast, TCFD provides voluntary guidelines globally, emphasizing climate-related financial disclosures. While there may be overlap in certain areas, they are separate initiatives with unique objectives.
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