The Definition of Corporate Sustainability Reporting Directive (CSRD)

Definition of the Corporate Sustainability Reporting Directive (CSRD)

The Corporate Sustainability Reporting Directive (CSRD) is a European Union law that requires in-scope companies to publish detailed, audited information about their sustainability risks, opportunities and impacts. Reports follow the European Sustainability Reporting Standards (ESRS) and are based on a double materiality assessment.

Changes Under the Omnibus Simplification

In 2025 the European Commission proposed an "Omnibus" package to simplify sustainability rules, and EU institutions reached a final agreement in late 2025. Under the agreed changes, the CSRD scope for EU companies is narrowed to those with more than 1,000 employees and net turnover above €450 million, with simplified ESRS standards to follow. Companies should check current national transposition and timing, as dates and details continue to be finalized.

What CSRD Reports Cover

• Climate change, pollution, water, biodiversity and resource use.
• Own workforce, including health and safety, working conditions and training.
• Workers in the value chain, affected communities and consumers.
• Business conduct, such as anti-corruption and supplier relationships.

Example of CSRD

A European manufacturer in scope of CSRD identified health and safety of its own workforce as a material topic. Its report disclosed its safety management system, fatalities, recordable injuries and days lost for employees and contractors, with data pulled from its incident management system and checked by its auditor.

Frequently Asked Questions: CSRD

Does CSRD apply to non-EU companies?

It can apply to non-EU groups with significant turnover in the EU, under separate thresholds.

Do smaller suppliers have to report?

Not directly, but in-scope companies may ask suppliers for data. The Omnibus changes aim to limit how much data can be requested from smaller value chain partners.

Is CSRD reporting audited?

Yes. CSRD requires limited assurance over the sustainability statement.