CSRD – this is how the new directive will affect all companies


From 2024 and onwards, thousands of companies within the EU will be subject to stricter requirements for sustainability reporting through the new directive CSRD (Corporate Sustainability Reporting Directive). 

Don’t worry! We have read all the boring EU-reports so you don’t have to. In this article we summarize what the directive means and most importantly – how it will affect your company.

What is CSRD?

The first step in the transition towards a more sustainable world is to measure how we affect it.  CSRD (Corporate Sustainability Reporting Directive) is a new directive for sustainability reporting that was preliminary approved by the EU parliament in June 2022. The current regulation that is to be replaced by CSRD, is called NFRD (Non-Financial Reporting Disclosure). The aim of update is to revise and strengthen the NFRD and create a standardized, detailed and comparable rulebook for what a sustainability report should contain, how it should be reviewed and published. By demanding transparency, what is already being done and above all, what can be improved, is made visible.

When will the CSRD be implemented?

CSRD will be rolled out gradually in three stages:

  • January 1st  2024 for companies already subject to the NFRD
  • January 1st  2025 for large companies* that are not presently subject to the NFRD
  • January 1st  2026 for listed SMEs, small and non-complex credit institutions and captive insurance undertakings

* Large companies include any business with at least two of the following: 20 million Euro balance sheet total, more than 40 million Euro net turnover or more than 250 employees.

How are Swedish companies affected by CSDR?

Large Swedish companies are already covered by the Annual Accounts Act (ÅRL) and thus already have a habit of climate reporting. However, the introduction of CSRD will mean clearer rules for what the report must contain.

What details do we know about CSRD?

As of today, the official document is not yet available, but this is what we know so far:

  • The information will be complied based on the EU Taxonomy, GHG Protocol, GRI and TCFD.
  • It is likely that companies will have to report scope 1, 2 and if appropriate scope 3.
  • The report must describe how the business affect the environment, but also how the environment affects the business (e.g., what general risks increased greenhouse gas emissions entail for the company).
  • The sustainability report must be included in the management report.
  • The report will be presented in a digital format (XHTML).
  • Third-party audits will be required, either via the company’s own auditor or an external one.

What happens now?

Before the agreement can be published in the EU official journal, the Parliament and Council will have to formally approve it. How the Swedish lawmakers/government choose to interpret and implement CSRD in Sweden is yet to be seen and something we will keep you updated about. Either way, it is time to start preparing your business. With Atmoz it is easier than ever before to calculate and report your climate data. Read more here.