EU Corporate Sustainability Reporting Directive (CSRD): 5 Key Considerations for U.S. Companies
From January 2024, the EU’s Corporate Sustainability Reporting Directive (CSRD) will impose sweeping new corporate sustainability reporting requirements on up to 50,000 companies. The new regime applies directly to a significantly greater number of companies, and will require much more granular reporting on a wider range of sustainability topics, than is currently the case under the EU Non-Financial Reporting Directive (NFRD). Significantly more companies will be indirectly impacted by virtue of their position in covered companies’ value chains.
U.S. companies with EU exposure are likely to be in scope of the new requirements at one or more levels within their group structure. To the extent U.S. companies have not done so already, understanding the scope of coverage and timing of application of CSRD is a critical first step.
In this Alert, we provide five key takeaways for U.S. companies as they consider the application and requirements of this new disclosure regime.