CSRD: Corporate Sustainability Reporting Directive

The Corporate Sustainability Reporting Directive (CSRD) is a European Union regulation that expands and strengthens sustainability reporting requirements for companies operating in the EU. It replaces the older Non-Financial Reporting Directive (NFRD) and introduces standardized, detailed disclosure rules aligned with the European Sustainability Reporting Standards (ESRS).

Its goal is to improve transparency and comparability of environmental, social, and governance (ESG) information—particularly data on greenhouse gas (GHG) emissions, climate risks, and transition plans.

Main Segments of CSRD Reporting

CSRD reporting is built around the European Sustainability Reporting Standards (ESRS), which cover a wide range of ESG topics.

For climate, ESRS E1 requires disclosure of Scope 1, 2, and 3 greenhouse gas emissions, reduction targets aligned with a 1.5 °C pathway, transition plans, energy consumption, and climate-related risk assessments. mation—particularly data on greenhouse gas (GHG) emissions, climate risks, and transition plans.

Companies must also report on resource use and circular economy topics under ESRS E2–E5, such as water, waste, biodiversity, and land-use impacts.

A key component of CSRD is value-chain transparency—organizations need to show how suppliers contribute to their footprint—and how governance, policies, and risk management frameworks support their sustainability strategy.