Effective in 2024, the EU's Corporate Sustainability Reporting Directive (CSRD) requires companies to provide detailed sustainability reports, encompassing environmental impact to social responsibility. This directive expands on previous regulations, demanding greater transparency and accountability. It applies to all large companies and listed SMEs in the EU, aiming to provide stakeholders with comprehensive sustainability information.
Unpacking the core requirements
The CSRD mandates companies to annually disclose detailed sustainability information, including environmental impact, social responsibility, and governance practices. This includes evaluating and reporting on how their operations and supply chains align with broader sustainability goals. Companies are also required to demonstrate the impact and efficacy of their sustainability initiatives. Initial compliance reports are expected by 2024, marking a significant step towards enhanced corporate transparency in the EU.
Who needs to report?
The CSRD applies to large EU companies, including those listed on EU stock exchanges, as well as non-EU companies with substantial EU operations. This includes entities with more than 250 employees, and a net turnover exceeding €40 million. It extends to a broad range of firms, significantly expanding the scope of sustainability reporting beyond previous EU directives, and is expected to affect thousands of companies across the European Union.
How EcoVadis can help
EcoVadis’ Sustainability Intelligence Suite, backed by experience with a broad range of regulatory due diligence requirements provides a holistic approach to addressing human rights due diligence requirements in the supply chain. Incorporating process elements aligned with human rights due diligence frameworks promoted by international standards, it allows you to assess and improve sustainability performance through dynamic risk mapping of your entire supply base with IQ Plus and proactive supplier assessments with EcoVadis Ratings.
