This week, the European Parliament and Council reached a
provisional agreement on the Corporate Sustainability Reporting
Directive (CSRD), marking, according to EU
Commissioner Mairead McGuinness, "quite a dramatic moment...in
relation to reporting by companies".
CSRD changes will mean large companies must
publicly disclose information on how they engage with environmental
and social issues, human rights and governance factors and, under
the relatively novel concept of 'double materiality', also
disclose how those issues impact those companies.
For the first time, sustainability reporting will be
mainstreamed, put on an equal footing to traditional financial
reporting, independently audited, and based on common EU standards.
The CSRD amends the existing requirements of the Non-financial Reporting Directive
(NFRD), greatly expanding the range of companies
captured and the type of information to be published.
