The “Corporate Sustainability Report Directive” (CSRD) concerns 50 000 businesses within the EU. Businesses categorized as SMBs (+250 employees or various turnover thresholds) will have to submit a new report allowing to measure their ESG strategy as well as their carbon emissions. Additonnally, all businesses with at least 10 employees will have to submit a Corporate Sutainability report, under several conditions and with the possibility to submit a simplified report.
The CSR replaces the “non-financial report” (NFRD) and introduces more precise guidelines concerning the “Dynamic Double Materiality” and the presentation of carbon emission objectives under Scope 1, 2 and 3.
The CSRD together with forthcoming directives and regulations are the tools used by Europe to achieve its ESG objectives in the short and long run. The CSRD is fed by the NFRD (Non Financial Report Directive) and SFDR (Sustainable Finance Disclosure Regulation), and will be reinforced by the CBAM regulation which paves the road for GhG certificates on imports.
The CSR Directive will gain “full direct effect” by Q2 2024, as initially scheduled.
The slide below shows the deadlines for different types of businesses, as well as interactions of various directives and regulations.