What The CSRD Means For Your Business

Laura Houët

ESG Funds Lawyer

Understand how the Corporate Sustainability Reporting Directive (CSRD) is changing following the EU Omnibus reforms. Join Laura Houët former Co-Head of ESG at CMS as she explains the implications of the CSRD and who will be required to report and when.

Regulation and Initiatives

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What The CSRD Means For Your Business

1 min 36 secs

Key learning objectives:

Understand the purpose and key requirements of the Corporate Sustainability Reporting Directive (CSRD).
Understand who is in scope of CSRD and what companies are required to report.
Identify how the EU Omnibus reforms have changed CSRD and what the revised requirements mean in practice.

Overview:

The Corporate Sustainability Reporting Directive (CSRD) has reshaped the sustainability reporting landscape for companies within and beyond the EU. Watch the video to understand the foundations of CSRD and how the reporting framework works. Then explore the interactive flashcards to understand the latest changes introduced by the EU Omnibus reforms, including who remains in scope and what the revised requirements mean in practice.

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Summary

What is the Corporate Sustainability Reporting Directive (CSRD)?

The CSRD is the EU framework for corporate sustainability reporting. It requires companies within its scope to report material information about their impacts on people and the environment, as well as sustainability-related risks and opportunities that may affect the business. Reporting is based on the European Sustainability Reporting Standards (ESRS) and the principle of double materiality.

How is the CSRD changing?

The EU Omnibus reforms significantly simplify the CSRD framework. They change who is required to report, when certain requirements apply and the amount of information companies are expected to disclose. Under the revised scope, around 5,000 large companies are expected to remain subject to mandatory reporting, compared with approximately 50,000 under the original framework.

What does double materiality mean?

Double materiality considers sustainability from two perspectives: a company’s significant impacts on people and the planet, and sustainability-related risks and opportunities that can affect the company’s financial position or value. It acts as a key filter for determining what sustainability information needs to be reported.

What do the changes mean for companies outside the scope of CSRD?

Being outside the mandatory scope does not necessarily remove the need to provide sustainability information. Companies may still receive requests from customers, banks and other organisations that need sustainability data for their own reporting or decision-making. However, the revised framework introduces limits on the information that can be requested from smaller value-chain companies.

What do companies within scope need to do?

In-scope companies need to determine what sustainability matters are material, apply the ESRS, collect relevant information across their operations and value chain, and prepare their sustainability reporting for external assurance. The revised framework is intended to make this process more proportionate, including a significant reduction in mandatory datapoints

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Laura Houët

Laura Houët was Former Co-Head of ESG at CMS, and has over 16 years of experience in the asset management industry. She advised international fund houses on sustainable investment strategies and governance, helping them navigate sustainability-related regulations like SFDR, TCFD, EU Taxonomy, CSRD, and UK's SDRs. She also provided strategic governance and internal preparation for climate transition. Laura served on the CMS sustainability board committee and various industry bodies, contributing to the development of sustainable practices. She is a frequent speaker on sustainable investment issues.

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