On the 21st of April 2021, the EU commission announced the adoption of the Corporate Sustainability Reporting Directive (CSRD) in line with the commitment made under the European Green Deal. The CSRD will amend the existing Non-Financial Reporting Directive (NFRD) and will substantially increase reporting requirements on the companies falling within its scope in its efforts to expand the sustainability information for users.
The proposed directive will also entail a dramatic increase in the number of companies subject to the EU sustainability reporting requirements. The NFRD that is currently in place for reporting on sustainability information, covers approximately 11,700 companies and groups across the EU. The CSRD is expected to increase the number of firms subject to EU sustainability reporting requirements to approximately 49,000.
This will come with significant changes and potential challenges for companies in scope. Companies should start preparations effectively now – as only one and a half year is left to the date of implementation.
We analyzed the readiness of the 25 largest listed companies in the Netherlands (AEX index) as well as the 25 largest non-listed Dutch companies against the requirements of the CSRD. This paper provides an overview of the level of preparedness for critical elements of the CSRD of those companies, which will help these and other companies to assess where they stand and might need to focus on. We will conclude with key recommendations for companies to consider.