The European CSRD Directive brings a completely new framework for reporting non-financial information – detailed, structured and with a high emphasis on verifiability. Unlike the previous NFRD directive, this is not just a text summary of the company's ESG (Environment, Social, Governance) activities. Newly, the published information must be comprehensive, supported by data and ready for independent verification by an auditor.

This includes the so-called double materiality – companies must describe how ESG topics affect their business, but also how the business itself affects the environment and society. And not only within the company, but throughout the supply chain. Various departments will be involved in the creation of the sustainability report – not only legal or finance, but also HR or operations.

The European Sustainability Reporting Standards (ESRS) provide a specific structure and requirements for the content of the report. They cover topics ranging from climate risks to equality of opportunity to supplier relationship management. Companies are expected to clearly explain strategies, goals, metrics, and policies – including developments over time.

CSRD and ESRS are more than just a new reporting format – they represent an impetus for deeper integration of sustainability into corporate governance. Those who start early can not only reduce regulatory risks, but also gain a head start in credibility, financing and customer relations.