Corporate Sustainability Reporting Directive is known as CSRD. A standardised EU-wide reporting structure for businesses to disclose sustainability information is the goal of the proposed EU rule.
The goal of the directive is to make it easier for stakeholders, investors, and the general public to comprehend how well businesses are doing in terms of sustainability, including their environmental, social, and governance (ESG) practises. Additionally, it aims to support businesses in managing sustainability opportunities and risks more successfully.
Using a set of standardised reporting criteria, the CSRD would oblige significant EU corporations to report on a wider range of sustainability issues. This would take the place of the current Non-Financial Reporting Directive (NFRD), which has drawn flak for prioritising quantity over quality of reporting and lacks EU-wide standardisation.
The EU has not yet approved the CSRD, which is still a proposed directive. A draught of the regulation was released by the European Commission in April 2021, and the European Parliament and EU Council are now reviewing it.
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