The Corporate Sustainability Reporting Directive (CSRD) is a law adopted by the European Union (EU) in 2023 and entered into force in 2024. This regulation ensures that large companies operating within the EU borders provide transparent and comprehensive information on their environmental, social, and governance (ESG) performance. CSRD, which replaced NFRD, does not limit companies only to environmental and social issues but also obliges them to provide information in areas such as human rights, anti-corruption, and corporate governance.
Transparency and traceability, which stand out among the advantages provided by CSRD, increase the level of transparency and ensure traceability for investors, employees, and other stakeholders by providing more detailed information about companies' ESG performance. At the same time, it promotes sustainable investments and incentivizes companies to adopt sustainable business practices, contributing to building a more equitable society.
The scope of the CSRD includes large companies operating within the EU. Companies with more than 250 employees, with an annual net turnover of more than 40 million euros or an annual balance sheet total of more than 20 million euros, are subject to CSRD regulation. These companies must prepare their reports by European Sustainability Reporting Standards (ESRS) starting from the 2024 financial year. The CSRD is also expected to affect companies exporting from Türkiye to the EU and may encourage Turkish companies to be more conscious of sustainability and provide a competitive advantage.
Author:
Mina Üstün
Source:
Comentarios