What does CSRD require from companies?

The requirement for companies under the Corporate Sustainability Reporting Directive (CSRD) revolves around the need for verified and reliable sustainability disclosures. The CSRD mandates that companies provide audited Environmental, Social, and Governance (ESG) disclosures, which enhances transparency and accountability. This means companies must ensure that their sustainability information is independently verified, providing stakeholders with confidence in the accuracy and integrity of the reported data.

Audited ESG disclosures not only help in maintaining consistency in reporting standards but also assist investors and the public in making informed decisions based on credible information. This requirement aligns with the broader goals of promoting sustainable business practices and enabling companies to take responsibility for their impact on society and the environment.

The other choices do not reflect the essence of what CSRD aims to achieve. Unverified sustainability claims lack the accountability CSRD seeks; annual profit reports focus solely on financial performance rather than holistic sustainability; and while social community impact assessments are important, they are not a formal requirement of the CSRD. This emphasizes the directive's commitment to rigorous sustainability reporting standards through independent audits.