The Corporate Sustainability Reporting Directive (CSRD) establishes EU-wide requirements for companies to disclose sustainability information. It updates and expands the previous Non-Financial Reporting Directive (NFRD) to improve the quality, consistency, and comparability of environmental, social, and governance (ESG) disclosures. 

Key CSRD requirements explained in brief:

• Who must report: All large EU companies, listed SMEs, and some non-EU companies with significant EU operations, as defined by current and forthcoming regulations, including adjustments from the “Stop-the-Clock” Directive.
• What to report: Sustainability impacts, risks, and opportunities across environmental (e.g., emissions), social (e.g., labour conditions), and governance aspects along the entire value chain.
• Reporting standards: Use of European Sustainability Reporting Standards (ESRS), which specify required disclosures and presentation; simplification efforts aim to reduce complexity.
• Independent assurance: External auditors or assurance providers must verify reported information.
• Digital format: Reports must be prepared in a machine-readable digital format for easier access and analysis.

The CSRD aims to make sustainability reporting as reliable and transparent as financial reporting, supporting investors, regulators, and stakeholders in informed decision making.  For detailed guidance, see the European Commission’s official CSRD resources.