What is the Corporate Sustainability Reporting Directive (CSRD)?

Dutch term: CSRD | Legal basis: Directive (EU) 2022/2464

The Corporate Sustainability Reporting Directive (CSRD, Directive (EU) 2022/2464) requires companies within its scope to report on sustainability matters (environmental, social and governance) in their management report, using the European Sustainability Reporting Standards (ESRS). The reports must be audited by an independent assurance provider.

The CSRD applies in phases: large public-interest entities from financial year 2024, other large companies from 2025, and listed SMEs from 2026. Non-EU companies with significant EU turnover will be captured from 2028. The reporting covers the company's own operations and its upstream and downstream value chain, including supply chain sustainability risks.

Why it matters for international businesses

For international groups with Dutch subsidiaries, CSRD reporting requires detailed sustainability data from the supply chain. This creates a need for contractual information-sharing provisions with suppliers and customers.