The Corporate Sustainability Reporting Directive is the EU's regime for corporate sustainability reporting — requiring in-scope companies to report against the European Sustainability Reporting Standards on a double-materiality basis, with assurance. Its scope and timing have been the subject of active reform, so the picture below is the shape, not a fixed rulebook.
The CSRD requires companies within its scope to report sustainability information — environmental, social and governance — using the European Sustainability Reporting Standards (ESRS), on a double-materiality basis, with assurance over what is reported. It significantly widened the population of companies subject to sustainability reporting compared with the earlier regime.
Both scope and timetable have since been reshaped by the EU's “Omnibus I” simplification directive (Directive (EU) 2026/470), adopted in February 2026 and in force from 18 March 2026. It narrows mandatory ESRS reporting to larger entities — broadly those above 1,000 employees and €450m net turnover — leaving the first CSRD wave (large listed companies, banks and insurers) unchanged while delaying later waves to financial years from 2027 or removing them from scope. Member-state transposition is still in train, so confirm the current position against the latest EU texts; treat any summary as directional.
Where it applies, the CSRD's defining features are, in outline:
CSRD is a reporting and disclosure regime, not a risk-modelling one — but the climate and risk data behind the environmental parts of an ESRS report has to come from somewhere, and for financial firms it overlaps with the same climate-risk work they already do for prudential purposes.
Abgalis carries climate as one of seven live risk domains, so the underlying climate scenario analysis and metrics can serve both the prudential and the disclosure side rather than being produced twice. The CSRD report itself, its ESRS mapping and its assurance remain the firm's responsibility and its advisers' domain — Abgalis is analytics, not authority. The related disclosure standards are covered in TCFD and ISSB, and the energy view in Abgalis for energy.
The Corporate Sustainability Reporting Directive is the EU's sustainability reporting regime. In-scope companies report against the European Sustainability Reporting Standards on a double-materiality basis, with assurance. Its scope and timetable have been subject to EU reform, so firms should confirm the current position against the latest texts.
Double materiality means reporting both how sustainability matters affect the company financially, and how the company's own activities affect people and the environment. It is a defining feature of the CSRD and the ESRS.
The CSRD widened the population of companies subject to sustainability reporting, and can reach certain non-EU companies with significant EU activity. Under Omnibus I the mandatory population is broadly entities above 1,000 employees and €450m turnover, with the first wave (large listed companies, banks and insurers) unchanged; exactly which companies are in scope, and from when, must be confirmed against the current EU texts rather than assumed.
Yes. The EU's “Omnibus I” simplification directive (Directive (EU) 2026/470) came into force on 18 March 2026, narrowing mandatory scope to entities above roughly 1,000 employees and €450m turnover, keeping the first wave unchanged and delaying later waves to financial years from 2027 or removing them from scope. Member-state transposition is ongoing, so check the latest official position before relying on it.
Abgalis carries climate as one of seven live risk domains, so the climate scenario analysis and metrics behind the environmental parts of an ESRS report can draw on the same model a financial firm uses for prudential climate work — rather than being produced separately. The report, its ESRS mapping and its assurance remain the firm's responsibility.
No. The CSRD report, its mapping to the ESRS and its assurance are the firm's responsibility, supported by its accounting and sustainability advisers. Abgalis provides underlying climate-risk analytics that can feed the environmental data; it does not author or assure the report.
This page is a general explainer, not legal, regulatory or accounting advice, and the CSRD's scope and timing have been subject to EU reform — confirm the current position against the latest EU texts. Firms should take their own advice. Abgalis is a risk data and analytics provider and is not a regulated or authorised firm; the CSRD report and its assurance remain the firm's responsibility.
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