The Corporate Sustainability Reporting Directive (CSRD) is a new piece of legislation in the European Union which requires companies to report on their greenhouse gas emissions on all levels.
The CSRD, was passed to replace the NFRD. Concrete emissions data will be the primary focus of CSRD disclosures, Notably, CSRD will require a double materiality (both financial and impact materiality) assessment, not only requiring an evaluation of potential internal financial impacts, but larger societal impacts as well, both positive and negative.
The specificity of scope 3 emissions required by CSR requires a highly complex assessment of associated emissions of each individual product.
While the NFRD applied to about 11,000 companies in Europe, the CSRD will eventually impose reporting mandates on roughly 40,000 EU companies, as well as 10,000 non-EU companies. Of the non-EU companies, about 3,000 are based in the US, as well as 1,000 each in the UK and Canada.
Unlike NFRD, CSRD requires that companies have their reports audited and verified by an accredited independent certifier.
Download the full report here.
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