Global Reach of the E.U. Corporate Sustainability Reporting Directive and the Impact on U.S. Companies

In November 2022, the European Council (EC) and the European Parliament approved the final text of the Corporate Sustainability Reporting Directive (CSRD), which will require sustainability reporting far beyond what most companies provide today and will apply to a substantial number of companies that previously were not subject to mandatory sustainability reporting.

The CSRD will affect not only E.U.-based companies, but all companies with significant operations in E.U. jurisdictions, including U.S.-based companies with as little as one subsidiary or branch in the European Union.