The CSRD (Corporate Sustainability Reporting Directive) is a European directive that requires large companies and certain SMEs to disclose information on their environmental, social, and governance (ESG) practices. It aims to enhance the transparency and reliability of sustainability reporting and enable better comparability across organizations. The directive introduces the European Sustainability Reporting Standards (ESRS) and requires the verification of reports by an independent third-party body. A “double materiality” approach is also required, asking companies to assess both the impact of sustainability on their business and the impact of their activities on society and the environment.
