Ensure CSRD Compliance & Strengthen Your Sustainability Strategy

CSRD: Corporate Sustainability Reporting Directive

What is CSRD?

The Corporate Sustainability Reporting Directive (CSRD) is an upcoming EU regulation that will require large companies to report on their environmental and social impacts. Replacing and expanding upon the Non-Financial Reporting Directive (NFRD), CSRD aims to standardise sustainability disclosures, improve transparency, and support the EU’s broader sustainability objectives.

While CSRD is an EU regulation, its impact extends beyond Europe. Many UK businesses, particularly those operating in the fashion industry with supply chains or markets in the EU, will need to comply to maintain access to European markets and meet growing investor and consumer expectations for sustainability transparency.

Who Needs to Prepare for CSRD?

The directive expands the number of businesses required to report sustainability data, impacting a wide range of industries, including fashion and textiles. CSRD will apply to:

Employ 250 or more people

Annual turnover >€40 million

Annual balance sheet >€20 million

Key CSRD Requirements

CSRD introduces stricter and more detailed sustainability reporting standards.

Companies will be required to:

  • Report on their environmental, social, and governance (ESG) impacts using the European Sustainability Reporting Standards (ESRS).

  • Conduct a double materiality assessment, identifying both the financial impact of sustainability issues on the company and the company’s impact on people and the environment.

  • Provide third-party assured sustainability reports as part of their annual financial disclosures.

The directive will be phased in, with large companies required to comply first, followed by SMEs and non-EU firms in subsequent years. Organisations need to start preparing now to align their reporting practices with CSRD requirements.