New Corporate Sustainability Reporting Directive (CSRD) Adopted

On 28 November 2022, the Council of the European Union adopted the new - and long-awaited - Corporate Sustainability Reporting Directive (CSRD).

The CSRD is part of the European Green Deal and requires a number of undertakings to collect data and report on their impact on people and the environment as well as on their corporate governance - the so-called ESG data (Environmental, Social and Governance) in order to bring about increased transparency, for instance in terms of sustainability in every form.

The CSRD replaces the Non-Financial Reporting Directive (NFRD), which was implemented in sections 99 a-b and 107 d of the Danish Financial Statements Act. The NFRD applied to listed companies and other large undertakings (accounting classes C and D). The adoption of the CSRD means that in the long term far more undertakings are to report their ESG data and that the reporting requirements are strengthened.