Corporate sustainability reporting

EU rules require large companies and listed companies to publish regular reports on the social and environmental risks they face, and on how their activities impact people and the environment.

What the EU is doing and why

EU law requires all large companies and all listed companies (except listed micro-enterprises) to disclose information on what they see as the risks and opportunities arising from social and environmental issues, and on the impact of their activities on people and the environment.

This helps investors, civil society organisations, consumers and other stakeholders to evaluate the sustainability performance of companies, as part of the European green deal .

New rules on corporate sustainability reporting: The Corporate Sustainability Reporting Directive

On 5 January 2023, the Corporate Sustainability Reporting Directive (CSRD) entered into force. It modernises and strengthens the rules concerning the social and environmental information that companies have to report. A broader set of large companies, as well as listed SMEs, will now be required to report on sustainability. Some non-EU companies will also have to report if they generate over EUR 150 million on the EU market.

The new rules will ensure that investors and other stakeholders have access to the information they need to assess the impact of companies on people and the environment and for investors to assess financial risks and opportunities arising from climate change and other sustainability issues. Finally, reporting costs will be reduced for companies over the medium to long term by harmonising the information to be provided.

The first companies will have to apply the new rules for the first time in the 2024 financial year, for reports published in 2025.

Companies subject to the CSRD will have to report according to European Sustainability Reporting Standards (ESRS). The standards are developed in a draft form by the EFRAG, previously known as the European Financial Reporting Advisory Group , an independent body bringing together various different stakeholders.

The first set of ESRS was published in the Official Journal on 22 December 2023 under the form of a delegated regulation. These standards apply to companies under the scope of the CSRD regardless of which sector they operate it. They are tailored to EU policies, while building on and contributing to international standardisation initiatives.

The CSRD also requires assurance on the sustainability information that companies report and will provide for the digital taxonomy of sustainability information.

In September 2024, Mairead McGuinness, Commissioner for Financial Services, Financial Stability and Capital Markets Union, wrote to Member States concerning the CSRD. The Commissioner’s letter describes the measures taken by the European Commission to ensure the proportionate implementation of its corporate sustainability reporting framework. It also invites Member States to take practical steps to minimise the burden on companies associated with the new reporting requirements.

Policy making timeline

7 August 2024

Frequently asked questions - Corporate sustainability reporting

Publication of the frequently asked questions on the implementation of the EU corporate sustainability reporting rules .
2 May 2024

Guidance - Corporate sustainability reporting

Commission welcomes guidance on interoperability of European and global sustainability reporting standards
8 February 2024

Legislation - European sustainability reporting standards

Political agreement between the European Parliament and the Council on postponing adoption deadlines for certain European Sustainability Reporting Standards (ESRS) .
8 February 2024

Legislation - European sustainability reporting standards

Political agreement between the European Parliament and the Council on postponing adoption deadlines for certain European Sustainability Reporting Standards (ESRS) .
22 December 2023

Legislation - European sustainability reporting standards

Publication of the European Sustainability Reporting Standards (ESRS) in the Official Journal .
17 October 2023

Legislative proposal - European sustainability reporting standards

2024 Commission work programme: Proposal for a Decision as regards the time limits for the adoption of sustainability reporting standards for certain sectors and for certain third-country undertakings .
31 July 2023

Legislation - European sustainability reporting standards

Adoption of the European Sustainability Reporting Standards (ESRS) , accompanied by questions and answers on the ESRS .
9 June 2023

Legislation - European sustainability reporting standards

Opening of feedback process of a first set of draft sustainability reporting standards for companies, opening a four-week public feedback period .

Following the feedback period, the Commission will consider the feedback received before finalising the standards as delegated acts and submitting them to the European Parliament and Council for scrutiny.
14 December 2022

Legislation - Corporate Sustainability Reporting

Publication of the Corporate Sustainability Reporting Directive (CSRD) in the Official Journal
23 November 2022

Standards - Corporate Sustainability Reporting

First set of draft EU sustainability reporting standards published by EFRAG
22 June 2022

Legislation - Corporate Sustainability Reporting

Political agreement by the European Parliament and the Council on the Corporate Sustainability Reporting Directive (CSRD)
21 April 2021

Legislative proposal - Corporate Sustainability Reporting

Proposal for a Corporate Sustainability Reporting Directive (CSRD) to amend the reporting requirements of the NFRD.
8 March 2021

Reports - EU sustainability reporting standards

EFRAG reports on development of EU sustainability reporting standards
20 February 2020

Consultation - Non-financial reporting

Public consultation on the review of the non-financial reporting directive

End date: 11 June 2020
20 February 2019

Consultation - Non-financial reporting

Targeted consultation on the guidelines on reporting climate-related information

End date: 20 March 2019
18 June 2019

Guidelines - Non-financial reporting

Guidelines on reporting climate-related information , which in practice consist of a new supplement to the existing guidelines on non-financial reporting, which remain applicable.
26 June 2017

Guidelines - Non-financial reporting

Guidelines to help companies disclose environmental and social information . These guidelines are not mandatory, and companies may decide to use international, European or national guidelines according to their own characteristics or business environment.
28 January 2015

Consultation - Non-financial reporting

Public consultation on non-financial reporting guidelines

End date: 15 April 2016
22 October 2014

Legislation - Non-financial reporting

Adoption of the Non-Financial Directive
15 April 2014

Frequently asked questions - Non-financial reporting

Disclosure of non-financial and diversity information by large companies and groups

Corporate sustainability reporting

What the EU is doing and why

New rules on corporate sustainability reporting: The Corporate Sustainability Reporting Directive

Basic information

Delegated and implementing acts

Legislative history

Basic information

Transposition by EU Member States

Legislative history

Corporate sustainability reporting

What the EU is doing and why

New rules on corporate sustainability reporting: The Corporate Sustainability Reporting Directive