Glossary

CSRD

The Corporate Sustainability Reporting Directive (Directive (EU) 2022/2464) replaced the Non-Financial Reporting Directive and expanded ESG disclosure obligations. Large public-interest entities with 500+ employees must publish a sustainability report from FY 2024, expanding to all large undertakings from FY 2025 and listed SMEs from FY 2026. ESRS S1 and G1 cover whistleblowing arrangements.

Full definition

The Corporate Sustainability Reporting Directive (CSRD), Directive (EU) 2022/2464, replaced the earlier Non-Financial Reporting Directive (NFRD) and dramatically expanded ESG disclosure obligations across the EU. From financial years starting on or after 1 January 2024, large public-interest entities with 500+ employees must publish a sustainability report following the European Sustainability Reporting Standards (ESRS). The scope expands progressively to large undertakings (>250 employees, >€50m turnover, or >€25m balance sheet) from FY2025, and to listed SMEs from FY2026. The ESRS Standard 'S1 Own Workforce' requires disclosure of whistleblower-protection arrangements and of the number of complaints received and resolved; 'G1 Business Conduct' requires disclosure of anti-bribery and anti-corruption controls. The CSRD interacts with EU Directive 2019/1937 because a fully functioning whistleblower channel is the data source for several CSRD disclosures; companies whose channel is dormant struggle with the reporting obligation. The CSRD is enforced through the audit of financial statements: the limited assurance opinion required from FY2024 covers the sustainability statement.

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