EU: Corporate Sustainability Reporting Directive

Current CSRD status of European Countries

As of the end of August 2024, only 11 of the 27 EU countries have added the CSRD into national law. Another 16 have drafted implementing laws, which are under review. Portugal is the only country that has not started and has yet to publish anything regarding CSRD.

For full details, see our country status guide.

What does this mean?

Until all EU Member States add CSRD into national law, inconsistencies may lead to legal and operational challenges. Without uniform adoption of CSRD rules, discrepancies in sustainability reporting standards may arise, making it difficult for stakeholders to compare and assess ESG performance across jurisdictions. These challenges may be alleviated once CSRD has been fully implemented across the EU as most countries have adopted the EU text. However, some countries do diverge from the EU text by amending the scope of affected entities, reporting deadlines, and what information should be included in reports. Consequently, companies may still experience these difficulties.

To navigate these challenges, companies will need to be flexible. They should consider implementing compliance strategies that take into account the varying provisions across jurisdictions. To do this, companies should monitor the markets they operate in. Companies should also assess necessary steps to ensure compliance with CSRD rules, such as assessing legal entity scoping requirements.

Co-authored by Clare Johnston (Knowledge)

Further reading on CSRD

EU – Corporate Sustainability Reporting Directive: sustainability reporting standards include new worker transparency duties

EU: A harmonised approach to corporate sustainability