In 2021, the European Union (EU) introduced the Corporate Sustainability Reporting Directive (CSRD), a significant legal development. This directive mandates that companies publicly disclose their environmental and social impact. Its overarching objective is to establish a framework that ensures the disclosed sustainability data is comparable, relevant, and reliable.
The CSRD brings about a transformative change by compelling companies to disclose their sustainability data. This disclosure enables stakeholders such as investors, consumers, and policy makers to make better-informed decisions. By influencing companies to adopt more sustainable practices, the CSRD aims to drive the transition towards a more sustainable business landscape.
If your company was previously required to report under the Non-Financial Reporting Directive (NFRD), it will also be obligated to report under the CSRD. For companies that were not subject to NFRD reporting requirements, there are two potential scenarios in which the disclosure responsibilities outlined in the CSRD could impact your business:
If your Irish company has securities listed on an EU-regulated market.
If your Irish company has a net turnover in the EU exceeding €150 million for each of the last two consecutive financial years and meets either of the following criteria:
For those organisations who are required to comply with CSRD, our timeline shows the steps the European Commission has already taken and is planning to take. Included against each step is a recommended action plan for companies who are preparing for mandatory reporting in 2026.
We support our clients in making CSRD-reporting work for their organisations. Part of the CSRD reporting drives companies to report completely new KPIs that have not been measured before. That is why they have to design new and transform existing internal processes aimed at collecting, monitoring and clarifying sustainability data.
Our approach to CSRD reporting is built on our extensive sustainability and reporting experience and strengthened by our people, digital, data and technology capabilities. We support you in defining the right KPIs to report on and preparing your organization to be able to do so.