What is CSRD?

The Corporate Sustainability Reporting Directive (CSRD) is a European Union directive that requires large companies to publish information on the environmental, social, and governance (ESG) impacts of their operations. The CSRD expands the previous Non-Financial Reporting Directive (NFRD) and aims to increase transparency and comparability in corporate sustainability reporting.

The provisions of the CSRD began to be applied gradually from 2024, depending on the size and type of the company. In the first phase, the CSRD applied to companies that exceed two of the following three criteria

• 250 employees
• Balance of 25 million euros
• 50 million euro turnover.

In February 2025, the European Commission proposed a legislative package to simplify EU rules and enhance competitiveness (known as the Omnibus package), which suggests relaxations and deferrals of the directive.