Table 3.

Summary of key changes introduced by CSRD

Context of key changeNFRDCSRD
Policies and requirements
  • Environmental protection

  • Social responsibility and treatment of employees

  • Respect for human rights

  • Anti-corruption and bribery

  • Diversity on company boards

On top of the NFRD requirements, reporting companies are required to provide information about
  • Their strategy, targets, the role of the board and management

  • The principle adverse impacts connected to the company and its value chain, intangibles and how they identified the information they report

New conceptNo referenceThe double materiality approach: reporting companies report on how their business impact and impacted by the environment and the social matters
Detailed reporting disclosureNo reporting standards and lacks explicit comparabilityNew details mandatory sustainability reporting standards ESRS to disclose material topics for stakeholders
Audit/assuranceNo requirement for third-party assurance (limited)The CSRD introduces an EU-wide requirement for limited assurance on sustainability information, with moving toward a reasonable assurance
Reporting formatThe disclosure is done online or in PDF formatRequires disclosure in XHTML format according to ESEF regulation
Located reportingNo referenceDisclosure must be included in the company’s management report as a single report in a digital, machine-readable format
Source(s): Author’s own work and own representation, adapted from EU and modified (EU, 2022)

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