The European Union is preparing to adopt the CSRD, modifying the previously applicable Non-Financial Reporting Directive (NFRD). The policy objective is to ensure that the investors and other stakeholders have sufficient data to assess the risks and opportunities that companies face. With the help of the CSRD, the European Commission aims to bring sustainability reporting (non-financial reporting) to similar maturity levels as current financial reporting.
According to the Directive, sustainability reporting should be: “Comparable, reliable and easy for users to find and make use of with digital technologies.”
What companies will be in scope?
The new Directive, which will be implemented on a national level across the whole EU, will cover a wider range of companies than the legislation it is replacing.
How to best prepare
The CSRD should not be seen as a simple disclosure. It requires the attention of senior management, board of directors, and external stakeholders. Why? The Directive marks a major change in sustainability and corporate reporting with far-reaching implications for businesses.
CSRD and inclusion
CSRD is not just about the environment, it also calls for more transparency in diversity and inclusion, creating better outcomes, improving resource demographics, and attracting a more diverse investor portfolio.
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