Corporate Sustainability Reporting Directive

• Approximately 50,000 companies are expected to be caught by CSRD, and the first companies will have to apply the new rules as early as 2024.
• Companies listed on an EU regulated market will be subject to these new sustainability reporting requirements. CSRD will also extend to undertakings that are not listed on an EU regulated market but have significant activity in the EU.
• Companies will need to report on a broad range of sustainability topics, not just climate. The ‘double materiality’ approach will also mean companies will need to identify their material sustainability impacts, their risks and opportunities, and how these affect their performance, position and development from both a financial and impact perspective.
• CSRD includes mandatory assurance requirements that are wide-ranging and cover sustainability reporting, digital tagging and EU taxonomy disclosure.

The CSRD directive means that sustainability reporting requirements will be more stringent than ever. With limited time to prepare, early preparation is key as some disclosure requirements will require significant time and resources.

With Deloitte you’ll experience a practical, step-by-step approach to CSRD implementation:

CSRD represents a significant step-up in sustainability reporting as companies will now be required to obtain independent assurance over a broad set of sustainability disclosures. CSRD requires assurance over three areas:

1. European Sustainability Reporting Standards (ESRS) – including both the double materiality process, and metrics and disclosures required by the ESRS.
2. EU Taxonomy - Non-financial entities must disclose “green” turnover, capex and opex indicators and financial entities need to disclose ratios relevant to their industry.
3. Digital Tagging– entities must mark up their sustainability reporting, using XBRL, in accordance with a prescribed electronic format.