CSRD (Corporate Sustainability Reporting Directive) and SFDR (Sustainable Finance Disclosure Regulation) are two European regulations that impose on companies the obligation to report ESG and sustainable development results. The CSRD will replace the current Non-Financial Reporting Directive (NFRD) and provide more uniform reporting requirements. SFDR, on the other hand, defines reporting requirements for financial market participants and advisors. Companies subject to these regulations will be required to disclose ESG risks, targets and performance, as well as provide detailed information on their products and services in the context of sustainable development.
