In April 2021 the European Commission presented a proposal for a Corporate Sustainability Reporting Directive (CSRD) that would amend the current Non-Financial Reporting Directive (NFRD) and form part of the wider EU policy to require companies to publicly disclose information and data around environmental, social affairs and governance matters.
On 28 November 2022, the European Council adopted the CSRD following adoption by the European Parliament on 10 November 2022. The CSRD will come into force 20 days after publication in the EU Official Journal and EU member states will then have 18 months to incorporate it into their national laws.
The CSRD creates new sustainability reporting requirements and expands the scope of companies that will be subject to the EU sustainability reporting framework. Under the current NFRD, large EU listed companies, credit institutions, insurance companies and other entities are required to report and disclose certain sustainability information on an annual basis. The CSRD expands the scope of disclosure requirements to non-EU companies with substantial operations in the EU.