The Greenscope guide to the CSRD

The Corporate Sustainability Reporting Directive (CSRD) is a new European regulation that expands the scope of ESG (Environmental, Social, and Governance) reporting requirements. Replacing the Non-Financial Reporting Directive (NFRD), the CSRD aims to standardize sustainability disclosures, improve data quality and availability, and direct investment flows toward sustainable businesses. Part of the European Green Deal, it aligns with the goal of carbon neutrality by 2050.

Starting in 2025, the CSRD will progressively apply to larger entities, including publicly listed companies with over 500 employees, who will first report on their 2024 financial year. The scope will expand to include large non-listed companies and certain SMEs based on employee count, revenue, and balance sheet size, eventually impacting about 50,000 companies in the EU, including 8,000 in France.

The CSRD introduces the European Sustainability Reporting Standards (ESRS), developed by the European Financial Reporting Advisory Group (EFRAG). These standards require companies to disclose ESG-related risks, opportunities, and impacts across areas such as climate change, biodiversity, and human rights. Companies must also perform a double materiality analysis, which assesses both financial risks from ESG factors and the company's impact on these issues.

To comply, businesses must conduct a gap analysis, identifying discrepancies between current reporting practices and CSRD requirements. This involves evaluating available data, assessing its maturity, and setting up governance structures to ensure accurate reporting.

Greenscope provides advisory services and a SaaS platform to help businesses navigate CSRD compliance, from materiality assessment to data collection and audit preparation. By aligning with the CSRD, companies can enhance risk management, reduce costs, unlock innovation, and improve access to capital. Additionally, compliance can strengthen a company's reputation and appeal to investors, contributing to long-term value creation.

This directive marks a significant shift toward greater corporate transparency, supporting a more sustainable economy across the EU.

Unlock the power of the CSRD to transform your business strategy and get ahead in the sustainability race – download our comprehensive guide now and stay at the forefront of ESG reporting.

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