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CSRD and ESRS: The EU mandatory sustainability reporting landscape

The CSRD is the EU’s mandatory sustainability reporting directive. Supported by the ESRS framework, it guides companies to disclose consistent, comparable and reliable ESG data –enabling transparency, accountability, and a smooth green transition.

The CSRD and ESRS

The EU’s sustainability regulatory landscape is continuously evolving to create a harmonious, transparent, effective, and consistent due process for guiding companies in their green transition.

At the heart of this effort is the European Financial Reporting Advisory Group (EFRAG), which works enact the EU’s commitment to transparent and robust sustainability reporting laid out by the European Commission in the legislative proposal for a Corporate Sustainability Reporting Directive (CSRD).

The Corporate Sustainability Reporting Directive (CSRD) is a EU directive that requires large companies and listed SMEs to publish regular reports on the social and environmental risks they face and on how their activities impact people and the environment.

By establishing common reporting standards, the CSRD ensures companies disclose ESG information in a way that is consistent, comparable, and reliable.

To support this, the European Sustainability Reporting Standards (ESRS) have been developed by EFRAG for the European Commission. These standards provide the detailed framework for disclosures under CSRD and cover a wide range of ESG topics.

Key considerations for companies

  • Double materiality: Obligations to report on both impact and financial perspectives

  • Data quality & assurance: Disclosures must withstand audit and verification

  • Value chain engagement: Companies need to assess and disclose Scope 3 emissions and broader value chain impacts, which means engaging with suppliers and partners

  • Transparency: ESRS disclosures are not just for regulators – they provide investors, customers, and employees with credible sustainability insights that can impact financing, procurement, and reputation

  • Global Alignment: ESRS is part of a global push for comparable ESG standards

  • Administrative burden: While the ESRS are designed to improve sustainability reporting, their complexity can burden some businesses
  • Phased implementation: Reporting requirements are being phased in over time, allowing companies to adapt gradually

EFRAG continuously comes out with amended ESRS drafts that aim to simplify and streamline the reporting process while reducing the administrative burden – balancing sustainability ambitions with workable reality that does not overburden companies. 


For further knowledge and up-to-date news regarding the ESRS, we recommend visiting the EFRAG website.

How Klappir helps you comply with mandatory ESRS reporting

In the ever-evolving sustainability landscape, one foundational requirement remains constant: High-quality data

High-quality data is the bedrock of reliable ESG reporting, and Klappir is your partner in unlocking that potential. We ensure your regulatory compliance is seamless and stress-free by staying ahead of evolving sustainability standards and supporting you every step of the way – so you can focus on driving your business and sustainability strategy.