Corporate Sustainability Reporting Directive - April 2021

Mandatory reporting for all listed companies on EU-regulated markets (except for listed micro-enterprises, but including non-EU issuers) and for all large companies/groups (covered by two of the following three criteria: a) balance sheet total > 20 million euros, b) net turnover > 40 million euros, c) average number of employees > 250). Nearly 50,000 companies in the EU are expected to be affected, compared to 11,000 under the current Directive.

The extended scope will also include EU subsidiaries/subgroups of third country parent companies (above relevant size criteria). The CSRD foresees the possibility to exempt these companies from the new reporting requirements if they are included in the consolidated management report of their parent company, provided this report includes the required sustainability information (either in accordance with the CSRD or in a manner equivalent to EU sustainability reporting standards).

Reporting to be verified by an independent auditor with “limited assurance”.

All information will be published as part of companies’ management reports, and disclosed in a digital, machine-readable format (as ESEF) to feed the European single access point.

Companies within the scope of the CSRD must also comply with the reporting obligations according to Art. 8 of the Taxonomy Regulation, i.e. the disclosure of ecologically sustainable (“green”) sales revenues, investment and operating expenses.