Compliance Briefing — November 28, 2022
The EU formally adopted the Corporate Sustainability Reporting Directive on 28 November 2022, expanding assurance, scope, and ESRS disclosure requirements starting in FY2024.
Executive briefing: The Council of the European Union gave final approval to the Corporate Sustainability Reporting Directive (Directive (EU) 2022/2464) on 28 November 2022. Large EU companies and listed SMEs must report in line with European Sustainability Reporting Standards (ESRS) with phased application beginning FY2024.
Key compliance checkpoints
- Scope assessment. Identify entities falling within CSRD scope, including large EU subsidiaries of non-EU parents.
- ESRS readiness. Align data collection and governance processes with ESRS sector-agnostic standards covering double materiality.
- Assurance planning. Prepare for limited assurance over sustainability information, coordinating with auditors on control testing.
Operational priorities
- Timeline alignment. Develop multi-year roadmaps for first reporters (FY2024) and subsequent waves (FY2025–FY2028).
- Systems integration. Implement ESG data platforms capturing metrics, targets, and qualitative disclosures required by ESRS.
- Materiality workflows. Conduct double materiality assessments engaging stakeholders and documenting methodology.
Enablement moves
- Establish governance committees linking sustainability, finance, and risk teams for CSRD oversight.
- Automate audit trails and evidence repositories supporting assurance procedures.
- Monitor EFRAG updates for sector-specific ESRS drafts and interoperability guidance.
Sources
- Directive (EU) 2022/2464 (Corporate Sustainability Reporting Directive)
- Council press release on CSRD adoption
Zeph Tech guides CSRD programmes with ESRS data models, assurance readiness, and phased implementation roadmaps.