Corporate Sustainability Reporting Directive (CSRD) and its impacts in Asia Pacific

The Corporate Sustainability Reporting Directive (CSRD) is set to reshape the global corporate sustainability landscape, impacting companies both within and outside the EU. Supplemented by the European Sustainability Reporting Standards (ESRS), the directive is aimed at promoting transformation in the business behaviour of companies that operate within the EU by increasing the breadth of nonfinancial information reported by companies and to ensure that information reported is consistent relevant, comparable, reliable, and easy to access.

An estimated 50,000 EU companies that will fall within the CSRD’s scope will be required to disclose comprehensive information on their sustainability performance. Some non-EU companies with operations in the EU will also be impacted by the CSRD. According to a recent estimate, more than 10,000 non-EU companies will be impacted by the CSRD.

This report provides an overview of the requirements of the CSRD and explores the extent to which companies across the Asia Pacific will be impacted. It also provides some suggested steps which companies in Asia Pacific can take to enhance their preparedness for CSRD-aligned disclosures.