Effective in 2023, the CSRD modernizes and strengthens the rules concerning social and environmental information that companies must report broadening the existing Non-Financial Reporting Directive (NFRD). A broader set of large companies, as well as listed SMEs, will now be required to report on sustainability. A significant innovation lies in the inclusion of non-EU companies that have a significant activity on EU territory. The “double materiality” of information is reflected in the requirement to include in the management report both how sustainability issues affect the company’s performance and how the company itself impacts people or the environment. The first companies will have to apply the new rules for the first time in the 2024 financial year, for reports published in 2025.

Directive – 2022/2464 – EN – CSRD Directive – EUR-Lex (europa.eu)