CSRD

What it means

The Corporate Sustainability Reporting Directive (CSRD), Directive (EU) 2022/2464, requires in-scope companies to report sustainability information prepared under the European Sustainability Reporting Standards (ESRS), presented as a dedicated sustainability statement within the management report and subject to assurance (starting at limited assurance). It amends the EU Accounting Directive rather than standing alone.

Why it matters

CSRD brings sustainability reporting onto the same footing as financial reporting: standardised, located in the annual report, and assured. For preparers, that means sustainability data now needs the same traceability and audit trail as the financial statements.

How it relates to nearby concepts

CSRD sets the obligation; the ESRS set the detail; double materiality decides what is reported; and the result is the sustainability statement. It interacts with the EU Taxonomy for the green-activity KPIs.

Common misunderstandings

• CSRD is a standalone regime: It is an amending directive that works through the EU Accounting Directive (2013/34/EU).
• It requires reasonable assurance from the start: It begins at limited assurance, with a possible move toward reasonable assurance later.

Frequently asked questions

Is the CSRD scope still changing?

Yes. The 2025–2026 Omnibus simplification (Directive (EU) 2026/470, published 26 February 2026) revised the thresholds and removed listed SMEs from scope. Because scope and dates change, the framework page carries the current detail; the definition here is the evergreen part.

Where does the sustainability statement go?

Inside the management report, as a clearly identifiable section, not as a separate document.