Policy Briefing — EU Council Adopts CSRD
The Council of the European Union formally adopted the Corporate Sustainability Reporting Directive, expanding ESG reporting to roughly 50,000 companies with phased implementation from 2024.
Executive briefing: On November 28, 2022, EU member states in the Council adopted the Corporate Sustainability Reporting Directive (CSRD). The directive modernizes the Non-Financial Reporting Directive, mandating European Sustainability Reporting Standards (ESRS) for large undertakings and listed SMEs.
Immediate compliance priorities
- Scope assessment. Determine entity inclusion timelines, covering FY2024 reports for large PIEs and staggered deadlines for other in-scope companies.
- Reporting infrastructure. Build ESG data governance, control frameworks, and assurance readiness aligned to forthcoming ESRS disclosures.
- Value chain data. Launch supplier engagement programs to capture double materiality metrics, emissions, and social indicators.
Control alignment
- Internal audit. Integrate sustainability reporting controls into internal audit plans and coordinate with statutory auditors.
- Technology. Deploy reporting platforms capable of structured ESRS tagging and consolidated sustainability statements.
- Governance. Elevate board oversight of sustainability risk management and disclosure approvals.
Enablement moves
- Monitor EFRAG's final ESRS and sector-specific standards for detailed data requirements.
- Coordinate with assurance providers to design limited assurance engagements ahead of mandatory audits.
- Align CSRD programs with related EU regimes, including taxonomy reporting and due diligence initiatives.
Sources
Zeph Tech enables CSRD compliance with ESG data pipelines, ESRS mapping, and assurance coordination across multinational portfolios.