CSRD Directive Guide

The European Union's Corporate Sustainability Reporting Directive (CSRD) introduces transformative changes to corporate sustainability reporting.

What Is CSRD?

CSRD is an EU directive that replaces the existing Non-Financial Reporting Directive (NFRD) and brings far more comprehensive reporting requirements.

Key Changes

1. Expanded scope: More than 50,000 companies
2. Detailed standards: European Sustainability Reporting Standards (ESRS)
3. Mandatory assurance: Independent assurance requirement
4. Digital tagging: Reporting in XBRL format

Who Will Be Affected?

Phased Rollout

• 2024: Large companies already subject to NFRD
• 2025: Other large companies
• 2026: Listed SMEs
• 2028: Non-EU companies (with €150M+ turnover in the EU)

For Non-EU Companies

Companies that trade with or operate in the EU may also fall within the scope of CSRD.

ESRS Standards

The European Sustainability Reporting Standards cover the following topics:

Environmental Standards

• Climate change
• Pollution
• Water and marine resources
• Biodiversity
• Resource use and circular economy

Social Standards

• Own workforce
• Workers in the value chain
• Affected communities
• Consumers and end users

Governance Standards

• Business conduct

Preparation Steps

1. Conduct a scope assessment
2. Perform a gap analysis
3. Set up data collection systems
4. Build internal capacity
5. Plan your assurance processes

Step4's CSRD Solution

Step4 offers end-to-end solutions for CSRD compliance.