Corporate Sustainability Reporting Directive (CSRD)
The CSRD is an EU directive requiring large companies and listed SMEs to report detailed sustainability information according to mandatory European Sustainability Reporting Standards (ESRS), including comprehensive climate and emissions data.
What is Corporate Sustainability Reporting Directive (CSRD)?
The Corporate Sustainability Reporting Directive (CSRD) entered into force in January 2023 and is being phased in from the 2024 reporting year. It dramatically expands the scope and depth of mandatory sustainability reporting in the EU compared to its predecessor, the Non-Financial Reporting Directive (NFRD).
Under the CSRD, companies must report according to the European Sustainability Reporting Standards (ESRS), which include detailed climate-related disclosures covering Scope 1, 2, and 3 emissions, transition plans, climate targets, and governance. Reports must be included in the management report and are subject to limited assurance by an auditor.
The CSRD affects approximately 50,000 companies across the EU — including non-EU companies with significant EU operations or EU-listed securities. UK companies with EU subsidiaries or significant EU revenue may fall within scope, making it relevant even post-Brexit. The directive applies in phases: large public-interest entities from 2024, other large companies from 2025, and listed SMEs from 2026.
Practical Examples
A UK-headquartered group with a large EU subsidiary prepares for CSRD compliance by mapping its existing SECR and CDP disclosures to the ESRS E1 Climate Change standard.
A European logistics company conducts a double materiality assessment as required by the CSRD, identifying climate change as material from both impact and financial perspectives.
An EU-listed manufacturer engages its auditor to perform limited assurance over its ESRS-aligned sustainability report for the first time.
How Climatise Helps
Climatise produces emissions data aligned with ESRS E1 requirements, covering Scope 1, 2, and 3, intensity metrics, and reduction targets. The platform generates audit-ready outputs that support CSRD compliance alongside UK-specific SECR reporting.
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