CSRD
The Corporate Sustainability Reporting Directive, an EU law requiring companies in scope to publish sustainability information under common European standards.
Example
A company in scope reports its greenhouse gas emissions by scope alongside other environmental and social disclosures.
The catch
Amendments have changed its timetable and coverage, so check which version applies to a given company.
Related terms
Greenhouse gas, Reporting, 1.5°C goal, Carbon pricing, Carbon tax, Climate justice
In more depth
CSRD, explained.
The CSRD's central idea is double materiality. A company in scope must report how sustainability issues affect its own finances and how its activities affect people and the environment, and a topic counts if it matters in either direction. The detail sits in the European Sustainability Reporting Standards, whose climate standard covers emissions, targets and any transition plan.
The sustainability statement sits in the management report and needs independent assurance by an auditor or accredited provider. The directive succeeded the Non-Financial Reporting Directive, and it should not be confused with consumer rules such as the Empowering Consumers Directive, which governs what companies tell shoppers.