Table 3. Summary of key changes... | Emerald Publishing

Table 3.

Summary of key changes introduced by CSRD

Context of key change	NFRD	CSRD
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 concept	No reference	The double materiality approach: reporting companies report on how their business impact and impacted by the environment and the social matters
Detailed reporting disclosure	No reporting standards and lacks explicit comparability	New details mandatory sustainability reporting standards ESRS to disclose material topics for stakeholders
Audit/assurance	No 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 format	The disclosure is done online or in PDF format	Requires disclosure in XHTML format according to ESEF regulation
Located reporting	No reference	Disclosure must be included in the company’s management report as a single report in a digital, machine-readable format

Context of key change	NFRD	CSRD
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 concept	No reference	The double materiality approach: reporting companies report on how their business impact and impacted by the environment and the social matters
Detailed reporting disclosure	No reporting standards and lacks explicit comparability	New details mandatory sustainability reporting standards ESRS to disclose material topics for stakeholders
Audit/assurance	No 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 format	The disclosure is done online or in PDF format	Requires disclosure in XHTML format according to ESEF regulation
Located reporting	No reference	Disclosure 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)