What is the Corporate Sustainability Reporting Directive? 

The Corporate Sustainability Reporting Directive (CSRD) is a transformative regulatory framework introduced by the European Union (EU) to elevate and standardize sustainability reporting. Effective from January 5, 2023, the CSRD replaces the previous EU Non-Financial Reporting Directive (NFRD), significantly expanding the scope and detail of required disclosures. 

 

A key innovation of the CSRD is its reliance on the European Sustainability Reporting Standards (ESRS), which provide detailed guidelines for how companies should report on environmental, social, and governance (ESG) factors. These standards are essential for meeting the CSRD’s requirements and ensuring consistency and comparability across sectors. 

 

What does CSRD cover? 

The CSRD and its associated ESRS introduce several important aspects that companies must address in their sustainability reporting: 

  • Double Materiality: Companies must assess both financial materiality (how sustainability issues impact the company) and impact materiality (how the company’s operations impact the environment and society). The ESRS provides a clear structure for how to perform these assessments and report on them. 
  • Detailed ESG Disclosures: The CSRD requires comprehensive reporting on all aspects of ESG, and the 12 ESRS standards offer a detailed roadmap for how to do this. These standards cover key areas such as: 
  • Environmental factors like climate change, pollution, and biodiversity. 
  • Social issues such as human rights, employee well-being, and diversity. 
  • Governance practices, focusing on corporate transparency and accountability. 
  • Sector-Specific Guidance: The ESRS provides not just general reporting guidelines but also sector-specific standards, ensuring that companies in different industries can tailor their reporting to reflect the most relevant issues. 
  • Global Alignment: The ESRS standards are designed to align with international frameworks such as the Global Reporting Initiative (GRI) and the Task Force on Climate-Related Financial Disclosures (TCFD). This global alignment promotes consistency, making sustainability reports useful both within and outside the EU. 
  • Auditing Requirements: The CSRD mandates that sustainability reports based on the ESRS must be audited for accuracy, ensuring that they meet the required standards and are trustworthy. 

 

YouSustain's CSRD Services 

YouSustain helps companies navigate the complex requirements of the CSRD, with a focus on ensuring compliance with the European Sustainability Reporting Standards (ESRS). Our services include: 

  • Double Materiality Analysis: We conduct thorough double materiality assessments, ensuring that your company meets the CSRD’s requirements and identifies both financial and impact materiality. 
  • ESRS Gap Analysis: We evaluate your current sustainability reporting practices to identify gaps based on the ESRS, helping you align your reports with the new standards. 
  • Strategy Development: Based on the ESRS, we help craft a clear strategy to ensure your company is ready for the first mandatory reporting deadline. 
  • ESRS Integration: Our team stays updated on the latest ESRS developments, ensuring that your company integrates the standards into its sustainability practices seamlessly. 
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