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The (CSRD) is a new European Union (EU) directive that requires small, medium and large companies operating in Europe to disclose their environmental, social and governance (ESG) impacts on society as part of an annual non-financial reporting duty. The directive is part of the larger , which is a set of policies that aim to make the EU climate neutral by 2050.
The CSRD was adopted by the European Commission in November 2022 and took effect on January 5, 2023. The directive required applicable member states to transpose Articles 1-3 of the directive into their national legislation by July 6, 2024.
The CSRD replaces the (NFRD), which was enacted in 2016. The NFRD required large companies to disclose non-financial information in their annual reports and to report on how they manage ESG issues.
A set of (FAQs) published by the EC on November 13, 2024 clarifies the interpretation of certain provisions on sustainability reporting introduced by the CSRD. The FAQs largely clarify the provisions already contained in the applicable legislation; however, the EC provides updated numeric thresholds for in-scope companies, as outlined below.
The CSRD expands the NFRD鈥檚 scope and applies to large undertakings which on their balance sheet dates exceed the limits of at least two of the three following criteria:
- Balance sheet total: 鈧25m.
- Net turnover: 鈧50m
- Average number of employees during the financial year: 250 or greater.
Large undertakings will have to comply with the CSRD beginning from 2026. Large undertakings will need to produce a sustainability report in 2026 covering the 2025 financial year.
The CSRD also covers listed small- and medium-sized enterprises (SMEs) trading in EU markets. SMEs meeting at least two of the following criteria are in scope:
- Balance sheet total: 鈧25m.
- Net turnover: 鈧50m.
- Average number of employees during the financial year: Up to 250.
SMEs will have to comply with the CSRD beginning from 2027. SMEs will need to produce a sustainability report in 2027 covering the 2026 financial year. However, listed SMEs may be able to opt out until 2028. In such cases, the undertaking must briefly state in its management report why the sustainability reporting was not provided, according to the CSRD.
The CSRD requires companies to follow the EU鈥檚 new (ESRS) when disclosing information about their environmental and social risks and impacts. The standards 鈥渃over the full range of environmental, social, and governance issues, including climate change, biodiversity and human rights. They provide information for investors to understand the sustainability impact of the companies in which they invest.鈥
More information on the CSRD can be found here.
As of April 2025, 19 jurisdictions have transposed the CSRD in full, while Czechia and Hungary have partially transposed the CSRD. Seven jurisdictions have introduced legislation to transpose the CSRD. Three jurisdictions 鈥 Iceland, Malta and Portugal 鈥 have yet to release specific details around proposed legislation to transpose the CSRD.
Non-EU member states, including Iceland, Liechtenstein, Norway and Switzerland, are members of the European Economic Area (EEA) and are thus required to transpose the CSRD into national law. Liechtenstein and Norway have transposed the CSRD, while Switzerland has initiated a consultation to transpose the CSRD. Iceland has yet to introduce legislation.
| 91天堂原創鈥檚 EU CSRD Transposition Analysis outlines each jurisdiction鈥檚 transposition status and analyses a number of key member states that have significantly expanded beyond the minimum scope of the EU CSRD. Please see the EU CSRD Transposition Analysis for more information. |
The interactive map below outlines the transposition of the CSRD across EU member states, as well as European Economic Area and European Free Trade Association states. If this map is not displaying, please click .
Key:
Transposed: The state has transposed the CSRD.
Partially transposed: The state has partially transposed the CSRD, with further transposition required.
Not transposed: The state has not transposed the CSRD.
Index:
| Jurisdiction | Transposition Status | Reference |
| Austria | Not transposed | A was submitted to the Austrian parliament on March 27. |
| Belgium | Transposed | Belgium鈥檚 legislation transposing the CSRD was in the Official Gazette on December 20, 2024 and took effect on December 30, 2024. |
| Bulgaria | Transposed | |
| Croatia | Transposed | |
| Cyprus | Not transposed | was submitted to parliament on January 30, 2025. |
| Czechia | Partially transposed | The Czech government has begun transposing the CSRD in two phases: The first phase involves companies who are already subject to the Non-Financial Reporting Directive requirements, and who must comply with the CSRD from 2025. The sustainability reporting requirements were adopted under in December 2023, and took effect from January 1, 2024. The second phase of the transposition will extend the reporting requirements to all other remaining applicable groups, starting with large undertakings and parents of large groups. The requirements will be implemented into the amended Accounting Law, which has received government approval and has been submitted to parliament for consideration. |
| Denmark | Transposed | (unofficial English translation available ) |
| Estonia | Transposed | |
| Finland | Transposed | (unofficial English translation available ) |
| France | Transposed | |
| Germany | Not transposed | 骋别谤尘补苍测鈥檚 was published on March 22, 2024. On July 24, 2024, the German government adopted an agreed upon governmental draft of the into German law. The German parliament is now expected to discuss the government draft law prior to full adoption. |
| Greece | Transposed | |
| Hungary | Partially transposed | 贬耻苍驳补谤测鈥檚 environmental social governance (ESG) framework is as follows:
Additional legal sources affecting the ESG framework can be found . Act CVIII of 2023 serves as the base framework regulation for implementation of the CSRD, while the decrees outline the rules under which companies must prepare ESG reports. Additional regulations are required to fully transpose the CSRD, particularly around sanctions and penalties for non-compliance. Act CVIII of 2023 was adopted by the Hungarian Parliament on December 12, 2023. The decrees were published on August 15, 2024 in the . 贬耻苍驳补谤测鈥檚 (SZTFH) is responsible for oversight of the ESG framework. |
| Iceland | Not transposed | Iceland has yet to launch a consultation or present draft legislation to transpose the CSRD to the Icelandic parliament. |
| Ireland | Transposed | |
| Italy | Transposed | |
| Latvia | Transposed | |
| Lithuania | Transposed | |
| Liechtenstein | Transposed | |
| Luxembourg | Not transposed | 尝耻虫别尘产辞耻谤驳鈥檚 was introduced to parliament on March 29, 2024 and the legislative process is underway, according to the . On October 28, 2024, to the draft legislation were adopted by the Finance and Justice committees. |
| Malta | Not transposed | The Maltese government has yet to release draft legislation to transpose the CSRD into local law. |
| Netherlands | Not transposed | A to transpose the CSRD into national law was to the Dutch House of Representatives on January 13, 2025. |
| Norway | Transposed | and (unofficial English translation available ) |
| Poland | Transposed | |
| Portugal | Not transposed | The Portuguese government has yet to release draft legislation to transpose the CSRD into local law. |
| Romania | Transposed | |
| Slovakia | Transposed | |
| Slovenia | Transposed | |
| Spain | Not transposed | 厂辫补颈苍鈥檚 , which was introduced in November 2024, is under negotiation in the Spanish Congress. |
| Sweden | Transposed | () |
| Switzerland | Not transposed | In June 2024, the government initiated a process on a draft bill titled Transparency on Sustainability Aspects. The consultation closed on October 17, 2024. According to the consultation announcement, the Federal Council will analyse the effects on Swiss companies of the EU rules and then determine the next steps. |
