Course Content
CSRD
Through six structured modules, learners will explore: ✅ CSRD fundamentals – Scope, deadlines, and applicability ✅ Double materiality & mandatory disclosures – Aligning with ESRS ✅ Data collection & management – Best practices for accurate ESG reporting ✅ Integration with global frameworks (GRI, SASB, TCFD) ✅ Stakeholder communication strategies – Engaging investors and employees ✅ Audit readiness & future trends – Ensuring long-term compliance
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What is CSRD?
Decoding the Core Requirements and Reporting Standards of CSRD
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Mastering the Corporate Sustainability Reporting Directive (CSRD)
About Lesson

The Corporate Sustainability Reporting Directive (CSRD) is a European Union (EU) regulation that significantly expands sustainability reporting requirements for companies. It replaces the Non-Financial Reporting Directive (NFRD) and introduces stricter, more detailed ESG (Environmental, Social, and Governance) disclosure rules.

Key Aspects of CSRD:

  1. Mandatory ESG Reporting

    • Companies must disclose their impact on climate change, human rights, social standards, and corporate governance.

    • Reports must follow the European Sustainability Reporting Standards (ESRS).

  2. Double Materiality Principle

    • Companies must report on:

      • Financial materiality (how sustainability issues affect their business).

      • Impact materiality (how their operations affect society & the environment).

  3. Broader Scope Than NFRD

    • Applies to:

      • All large EU companies (meeting 2 of 3 criteria: 250+ employees, €40M+ turnover, €20M+ assets).

      • Listed SMEs (with a transition period).

      • Non-EU companies with significant EU operations (from 2028).

  4. Digital & Audited Reporting

    • Reports must be published in a machine-readable (XBRL) format.

    • Requires external assurance (audit) for credibility.

  5. Strict Deadlines

    • 2025: Large listed companies (reporting on 2024 data).

    • 2026: Other large companies.

    • 2027: Listed SMEs (voluntary until 2028).

Why Does CSRD Matter?

  • Investors & regulators demand transparency in sustainability performance.

  • Non-compliance risks fines & reputational damage.

  • Aligns with global frameworks (e.g., GRI, TCFD, EU Taxonomy).

Example of CSRD Disclosures:

  • Environmental: Carbon footprint, water usage, circular economy efforts.

  • Social: Diversity, working conditions, supply chain ethics.

  • Governance: Anti-corruption, board diversity, risk management.

How Is CSRD Different from NFRD?

Feature NFRD (Old Rules) CSRD (New Rules)
Scope ~11,000 companies ~50,000 companies
Disclosures General principles Detailed ESRS standards
Audit Not mandatory Required assurance
Format PDF/narrative Digital (XBRL)

 

Now its Time to Take the Quiz:

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Welcome to your Understanding CSRD

What directive does the CSRD replace?

What does CSRD stand for?

Which organization is primarily responsible for developing the European Sustainability Reporting Standards (ESRS)?

Under CSRD, what reporting principle must companies apply when considering the environmental and social impacts of their activities?

Which two key concepts form the basis of CSRD's double materiality approach?

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