What is CSRD? Who is Affected by the New EU Regulation?

Corporate Sustainability Reporting Directive (CSRD)

The EU's CSRD is revolutionizing corporate sustainability reporting. Replacing the older NFRD, the CSRD significantly expands the scope of companies required to report and mandates strict adherence to the European Sustainability Reporting Standards (ESRS).

Who is in Scope?

Large companies operating within the EU, as well as non-EU companies generating over 150 million Euros in net turnover in the EU market, are included. Suppliers in countries heavily trading with the EU will also be deeply affected indirectly.

The Principle of Double Materiality

The most crucial innovation of the CSRD is double materiality. Companies must report both how climate and environmental issues affect their financial performance (financial materiality) and how their operations impact the environment and society (impact materiality).

Early compliance prevents legal penalties and provides a massive competitive advantage. Manage this complex process smoothly with Cliff's CSRD compliance consulting.