The CSRD: A Game-Changer for Corporate Sustainability in Europe?
The CSRD: A Game Changer for Corporate Sustainability in Europe?
The CSRD is a new approach through which the sustainability efforts of the companies are to be disclosed in the European Union. From 2024 onwards, about 50,000 companies operating under the EU would be required to follow new reporting standards. As such, it brings sustainability within corporate strategy.
What is CSRD?
The CSRD is a replacement for the Non-Financial Reporting Directive that currently exists and provides quality and comparability with improved transparency in reporting sustainability issues. It will be applicable to significant European Union Companies, as well as non-EU companies operating in Europe. Some important points are explained as follows:
Integrated Framework: Enterprises will be bound by the ESRS, as under this all businesses will receive report uniformly.
Compulsory Third-Party Audits: Sustainability reporting should be audited by any third party to make it more reliable and credible.
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