Corporate Sustainability Reporting Directive (CSRD)
EU directive requiring large companies, including insurers, to publish detailed, audited sustainability reporting, replacing the earlier non-financial reporting requirement.
The CSRD extends and tightens sustainability reporting obligations for large European companies, including insurers and reinsurers of significant size. It replaces the earlier non-financial reporting statement with a report built on detailed technical standards, the European Sustainability Reporting Standards. Three changes set it apart from the previous regime. Thresholds are lower, so far more companies are in scope. The required content is much more granular and standardized instead of being left to each company's judgment. Above all, the report must now be audited by an independent third party, which gradually brings it closer to the reliability expected of a financial report. An insurer therefore has to document its own emissions and governance and, under the double materiality principle, the impact of its underwriting and investments on climate and society. That obligation overlaps directly with data already gathered for the green taxonomy and voluntary climate alliances. The rules phase in by company size, starting with fiscal year 2024.
Starting with fiscal year 2024, the largest listed insurers in Europe had to publish their first sustainability report under the European Sustainability Reporting Standards, audited by an independent auditor just like their financial statements.
CSRD, EU sustainability reporting, ESRS, corporate sustainability reporting directive, CSRD reporting
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