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Blue Building Institute

CSRD comes into effect on 5 January 2023

On 16 December 2022, the Directive on Corporate Sustainability Reporting ("CSRD") was published in the Official Journal of the European Union. The CSRD will enter into force on 5 January 2023 and EU member states have until 6 July 2024 to transpose the directive into national law.


The CSRD will replace the current regime under the EU Non-Financial Reporting Directive ("NFRD") and will apply to all large EU companies (regardless of whether and where they are listed). Non-EU companies with substantial operations in the EU will also have to comply. Listed SMEs will also fall within the scope, but they will have more time to adapt to the new rules.


The CSRD introduces more detailed reporting requirements for a wide range of ESG matters in line with mandatory European sustainability reporting standards.


Sustainability disclosures must be reported in a dedicated section of the directors' (management) report as part of the financial statements, digitally 'tagged' in electronic reporting format and subject to independent audit. Reporting companies will also be required to include information under Article 8 of the EU Taxonomy Regulation.

The reporting requirements under the CSRD will apply in phases, from FY2024 (reporting year 2025) to FY2026 (reporting year 2027).

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