What is the CRSD Directive and what does it change?

The law firm Duraj Reck & Partners represents clients who are facing the challenge of adapting their reporting modus operandi to the EU CRSD Directive. This is a challenge that requires accuracy and speed, as some entities will be obliged to apply this directive as early as 2025.

The EU directive on The Corporate Sustainability Reporting Directive (CRSD) expands the group of entities subject to reporting and increases the scope of information that is subject to reporting.

How will obliged entities know what the detailed rules of disclosure are? These principles are to be set out in the European Sustainability Reporting Standards (ESRS).

The amendments are aimed at harmonising the standards of reporting information in the field of sustainable development and increasing the comparability of data reported by companies, which is to translate into greater responsibility of companies for their impact on the environment and society.

Reporting obligations are broader than before. The CSRD requires reporting entities to include a separate section in their management report containing the information necessary to understand the sustainability impact of the reporting entity.

The obligations, scope and rules of reporting are defined in the CSRD in very general terms. The details are to be specified in the already mentioned European Sustainability Reporting Standards (ESRS)