Feb 28, 2024

The CSRD & European Sustainability Reporting

Georgia Eriksen

The CSRD & European Sustainability Reporting

Sustainability reporting among large EUundertakings has suffered from inconsistency due to varying standards,hindering investors' ability to assess climate-related financial riskseffectively. In response, the EU introduced the Corporate SustainabilityReporting Directive (CSRD) to standardise carbon reporting and enhancetransparency. 

Effective as of January 2024, the CSRD graduallymandates reporting for different company types, expanding disclosurerequirements to include carbon credits and external verification for datareliability. It will also extend to large non-EU undertakings operating in theEU market, albeit with separate standards.

The CSRD's phased implementation supports companies' readiness, with allowancesfor first-time reporters and addressing challenges related to acquiring Scope 3data. Our report analyses these changes, evaluating undertakings' preparednessbased on data from over 1600 public companies, both within and outside the EU.While commendable for its broad scope, encompassing more companies than theprevious NFRD, we identify areas where the CSRD could have been morecomprehensive and gone further. 

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