The CSRD has replaced the NFRD, signifying the robust evolution in the EU’s approach to sustainability reporting. This has been officially adopted by the EU Council with enforcement beginning January 5, 2023. The first reports due in 2025 mandate comprehensive disclosures on environmental, social, and governance (ESG) factors. CSRD expands the scope beyond large public-interest entities to include all large companies and groups operating within the EU, thereby encompassing a broader swath of corporate entities under its regulatory umbrella. This move not only responds to growing investor and consumer demand for transparency, but also aims to foster trust and stability in financial markets.
