What is CSRD?
The CSRD (Corporate Sustainability Reporting Directive) changes how EU companies must report on sustainability.
More than 50,000 companies need to report on how they're doing on sustainability - like their impact on the environment, how they treat people, how they run their business, and their supply chains - in a reliable and consistent way, and much more detailed than ever before.
In other words, sustainability reporting will be held to the same standards as financial reporting, with digital formats and audits becoming the new normal.
The reason behind the CSRD is that the EU wants to promote investment in sustainable organizations and fight greenwashing
Non-compliance isn’t taken lightly. Consequences range from public reprimands to substantial fines. Depending on the country, this could mean serious financial penalties or even jail time for company directors who ignore these rules. So, it’s a significant change!
Even if your company is not directly impacted, the CSRD will still affect you. Large companies will ask their subcontractors for proof of sustainability efforts, so it's important to be proactive and document your practices.
In other words, sustainability reporting will be held to the same standards as financial reporting, with digital formats and audits becoming the new normal.
The reason behind the CSRD is that the EU wants to promote investment in sustainable organizations and fight greenwashing
Non-compliance isn’t taken lightly. Consequences range from public reprimands to substantial fines. Depending on the country, this could mean serious financial penalties or even jail time for company directors who ignore these rules. So, it’s a significant change!
Even if your company is not directly impacted, the CSRD will still affect you. Large companies will ask their subcontractors for proof of sustainability efforts, so it's important to be proactive and document your practices.
The CSRD will be rolled out over the next few years, until fully implemented in 2029.
