Scope
Large undertakings with >1,000 employees AND >€450m net turnover (post-Omnibus); listed SMEs removed; non-EU groups via Art. 40a (>€450m EU net turnover)
EU · directive
Corporate Sustainability Reporting Directive (CSRD)
Directive (EU) 2022/2464, as amended by Directive (EU) 2025/794 (Stop-the-Clock) and Directive (EU) 2026/470 (Omnibus I)
In forceApplies 2024-01-01
Penalties
Member-state penalties under national transposition; director responsibility for the management report
Last verified
2026-08-22
In plain language
What this law does
The EU's core ESG disclosure law: in-scope companies report under the ESRS in a dedicated section of the management report, applying double materiality across environment, social and governance topics, with assurance phasing from limited. Omnibus I narrowed scope and the Commission must adopt a simplified ESRS by September 2026.
Core obligations
Report sustainability information per ESRS in the management report; double-materiality assessment across IROs; Scope 1/2/3 GHG per ESRS E1; value-chain information subject to the value-chain cap; limited assurance at outset; digital (XBRL) tagging
Dictionary
Terms defined in this law
- GHG removals and carbon creditsCSRD
- Sustainability reportingCSRD — Art. 19a/29a
- Sustainability mattersCSRD
- Sustainability informationCSRD
- Public-interest entity (PIE)CSRD
- Large undertakingCSRD
- Third-country undertakingCSRD
- Value ChainCSRD — ESRS 1 §22
- Impacts, risks and opportunities (IROs)CSRD
- Double materialityCSRD — ESRS 1 §§32–41
- Impact materialityCSRD
- Financial materialityCSRD
- >1,000 employees AND ≥€450m net turnoverCSRD
- Wave 1CSRD
- Remaining waves deferred to FY2027 (reports 2028) by Stop-the-Clock; 12-month Omnibus transposition window (to ~Mar 2027)CSRD
- ESRS 1* General requirementsCSRD
- ESRS 2* General disclosures, four reporting areasCSRD
- GOV-1 role of administrative, management and supervisory bodies (AMSBs); GOV-2 information flows to AMSBs; GOV-3 sustainability performance in incentive schemes; GOV-4 statement on due diligence; GOV-5 risk management & internal controls over sustainability reportingCSRD
- SBM-1 strategy, business model and value chain; SBM-2 interests and views of stakeholders; SBM-3 material IROs and interaction with strategy/business model (incl. anticipated financial effects)CSRD
- IRO-1 process to identify/assess material IROs; IRO-2 disclosure requirements covered / content indexCSRD
- GDR-P / GDR-A / GDR-M / GDR-T (2026 revision)CSRD
- Topical standardsCSRD
- Entity-specific disclosuresCSRD
- Incorporation by referenceCSRD
- Phase-in provisionsCSRD
- GHG intensity (tCO₂e/net revenue); energy intensity per net revenue in high-impact sectorsCSRD
- Gross Scope 1 / Scope 2 (market- and location-based) / Scope 3 / total GHG emissionsCSRD
- Gender pay gap; CEO-to-median pay ratio (S1); work-life balance, health & safety ratesCSRD
- Taxonomy-aligned turnover / CapEx / OpExCSRD
- Limited assuranceCSRD
- Reasonable assuranceCSRD
- Statutory auditor or *independent assurance services provider (IASP)*; assurance statement in the management reportCSRD
- Audit committee / sustainability-statement governance; electronic tagging (XHTML + XBRL taxonomy per ESRS Set 1)CSRD
- Value-chain capCSRD
- Relazione di sostenibilitàLegislative Decree 125/2024 (CSRD transposition, in force 25 Sep 2024)
- Large undertakings/groups per Codice Civile size criteria (as amended); PIEsLegislative Decree 125/2024 (CSRD transposition, in force 25 Sep 2024)
- CONSOB supervision and sanctioning for listed issuersLegislative Decree 125/2024 (CSRD transposition, in force 25 Sep 2024)
- *Revisore legale* (statutory auditor) provides assurance; limited assurance from the startLegislative Decree 125/2024 (CSRD transposition, in force 25 Sep 2024)
- Wave 1 reported FY2024; Stop-the-Clock/Omnibus alignment pending (deadline ~Mar 2027)Legislative Decree 125/2024 (CSRD transposition, in force 25 Sep 2024)
Claims
Claims connected to this source
- Carbon neutral company
- Net zero by 2050” (entity target)
- 1.5°C-aligned” / “Paris-aligned
- We offset all our emissions
- Carbon insetting” (value-chain offsets)
- Nature positive
- Diverse and inclusive employer
- Net-zero portfolio by 2050
- Independently verified sustainability report
- Net-zero supermarket by 2040
- We’ve halved food waste (SDG 12.3)
- Net-zero fashion by 2040
- Halve our emissions by 2030, net zero by 2050
- We've cut net GHG emissions 24.5% vs our 2018 baseline
- Reduce Scope 3 FLAG emissions 45% by 2030
- 100% renewable purchased electricity
- Reduce water use 30% at high-stress manufacturing sites by 2030
- Halve food waste at our factories by 2030
- 40% women in leadership by 2025
- Scope 1, 2 and 3 emissions independently verified
- Executive pay tied to sustainability targets
- Growing sales while cutting absolute emissions