ESG CSRD

What is CSRD? 

The CSRD aims to establish a harmonized and consistent reporting framework for companies to disclose information related to their environmental, social, and governance (ESG) performance. This includes mandatory reporting on a wide range of sustainability topics with a particular focus on the impact of their activities on people and the environment. It is a fundamental reform of the previous framework, Non-Financial Reporting Directive (NFRD).

What information must be disclosed? 

The legally binding European Sustainability Reporting Standards (ESRS) provide the framework for companies to report on their sustainability-related risks, impacts, and opportunities across environmental, social, and governance (ESG) issues (including climate change, biodiversity, and human rights).

On 3 July 2026, the European Commission adopted revised ESRS alongside a voluntary reporting standard for smaller companies. Part of the Omnibus I simplification package, the revised ESRS are shorter and clearer.

Who are the companies concerned and what are the reporting deadlines? 

Following the finalization of the EU Omnibus I simplification package, the scope of the CSRD has been significantly narrowed. Mandatory reporting is now restricted to much larger organizations, protecting mid-sized companies from excessive administrative burden. Further, the requirements are being introduced on a staggered basis according to company size and classification under the revised thresholds

Reporting templates 

Under the CSRD, companies must deliver digital, audit-ready disclosures of their ESG impacts using EFRAG's standardized Sustainability Reporting (SR) XBRL Taxonomy. This framework integrates directly with existing European Single Electronic Format (ESEF) standards.  Rather than publishing separate documents, companies are legally required to include these digitally tagged, inline XBRL (iXBRL) sustainability disclosures directly within their unified annual management reports.