{"id":3457,"date":"2025-02-06T14:37:09","date_gmt":"2025-02-06T12:37:09","guid":{"rendered":"https:\/\/dge.ee\/?page_id=3457"},"modified":"2025-02-06T15:25:05","modified_gmt":"2025-02-06T13:25:05","slug":"csrd","status":"publish","type":"page","link":"https:\/\/dge.ee\/en\/services\/sustainability-assessment\/csrd\/","title":{"rendered":"CSRD"},"content":{"rendered":"

Enhancing Transparency and Accountability in EU Business Practices<\/span><\/b>\u00a0<\/span><\/p>\n

The Corporate Sustainability Reporting Directive (CSRD) was officially enacted on 5th January 2023, representing a significant milestone in the European Union\u2019s (EU) efforts to promote sustainable business practices. It is one of the cornerstones of the European Green Deal and is integrated together with other EU initiatives, such as the EU Taxonomy and the Sustainable Finance Disclosure Regulation. A key element of the CSRD is the European Sustainability Reporting Standards (ESRS), which were adopted by the European Commission through a delegated Act on July 2023.\u00a0<\/span>\u00a0<\/span><\/p>\n

As one of the primary instruments facilitating the evaluation of sustainability performance by organizations, consumers, and other relevant stakeholders, the CSRD demonstrates the EU\u2019s commitment to improving the quality, comparability, and transparency of sustainability reporting within its jurisdiction. The directive highlights the increasing prominence of Environmental, Social, and Governance (ESG) factors in business decision-making processes and emphasizes the necessity for enhanced accountability in corporate sustainability practices.<\/span>\u00a0<\/span><\/p>\n<\/div>

Objectives\u00a0\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n

The CSRD supersedes the Non-Financial Reporting Directive (NFRD) and addresses its limitations by expanding the range of companies mandated to report their sustainability performance. The directive applies to all large and listed companies, requiring them to disclose information on their social and environmental impact, governance issues, and sustainability practices.<\/span>\u00a0<\/span><\/p>\n

The implementation of CSRD is designed to facilitate greater alignment between companies\u2019 operations and the broader objectives of the EU Green Deal, contributing to a more sustainable, inclusive, and environmentally responsible economic landscape.<\/span>\u00a0<\/span><\/p>\n<\/div>

Key Requirements\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n

The key requirements for companies are:\u00a0<\/span>\u00a0<\/span><\/p>\n

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  1. adherence to the ESRS,\u00a0<\/span><\/li>\n
  2. the assessment of double materiality,\u00a0<\/span><\/li>\n
  3. third party assurance and\u00a0<\/span><\/li>\n
  4. digital availability.\u00a0<\/span><\/li>\n<\/ol>\n

    In their reporting, companies must adhere to the detailed standards set in the European Sustainability Reporting Standards. The double materiality perspective of the CSRD means that companies need to report on how the sustainability issues and topics set in the ESRS affect them financially (financial materiality) and how their operations impact the society and the environment (impact materiality). Third party assurance needs to be obtained from independent and verified auditors to enhance the credibility of the data. <\/span><\/p>\n<\/div>

    Applicability and Timeline\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n

    The Corporate Sustainability Reporting Directive (CSRD) is being implemented in phases to ensure that companies have adequate time to prepare for the new reporting requirements. A breakdown of the phases is as follows:\u00a0<\/span>\u00a0<\/span><\/p>\n

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    1. \n
        \n
      1. First Phase (January, 2024)\u00a0<\/span><\/b><\/li>\n<\/ol>\n<\/li>\n<\/ol>\n