Understanding the Corporate Sustainability Reporting Directive (CSRD) and its Climate Disclosure Requirements
The European Union Corporate Sustainability Reporting Directive ("CSRD") has now entered into force for many European companies, with first reports due in 2025 on 2024 data. The scale of the CSRD, combined with its new concepts, presents a unique and daunting challenge. Companies need to make rapid progress during the early part of 2025 to obtain data, engage with stakeholders, and identify material impacts risks and opportunities to allow them to start drafting the disclosures. Effective governance will be key to ensure that any proposed disclosures align with existing statements, and that any risks associated with new disclosures are understood and mitigated.
This article, coauthored by Jones Day and Sphera Solutions, outlines the regulations, requirements, and timing for companies doing business in the European Union.
