How does CSRD fits into the broader ESG landscape?

In the Paris Agreement, it has been agreed to limit global warming to a maximum of 2 degrees Celsius. A number of measures and policy initiatives, including the "Green Deal", should help the European Union to move towards an economy that is climate neutral by 2050, grows without resource depletion and in which no person or region is left behind.

In order to finance the green transition, public and private funds need be channelled to sustainable economic activities. This requires insight into the sustainability of undertakings so that investors or banks can make choices in where they invest, or to whom they grant loans and under what conditions. The CSRD contains the legal obligation to prepare and publish a sustainability report. That report contributes to insight in how sustainable an undertaking is and provides the foundation for a conversation with its stakeholders on this. The CSRD is not limited only to environmental matters, but explicitly also includes all other aspects of ESG. An integral approach of these three ESG topics (environment, social and governance) is necessary to make a positive impact on society and the environment.

European ESG-landscape in which the sustainability reporting fits
See glossary for abbreviations used in above image (page 3)

More information:

Reference is made to question 'How does the CSRD relate to existing and future sustainability legislation?'. For information on the green deal, please see: The European Green Deal

Questions CSRD & ESRS

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