NFRD (Non Financial Reporting Directive) is to be replaced by the CSRD (Corporate Sustainability Reporting Directive). This was decided after consultation with the EU Commission. The European Commission published the proposal for this in April 2021.
The European Commission commissioned EFRAG (European Financial Reporting Advisory Group) to develop the proposals. These proposals must now be implemented into national law. The NFRD includes important guidelines with the purpose of implementing the United Nations Sustainable Development Goals. Until these standards are revised by the CSRD, the NFRD will serve as the benchmark for reporting obligations in the spirit of sustainability.
The schedule calls for the CSRD to gradually replace the NFRD from 2024. This further development is part of the European Commission’s “Green Deal”. In addition to CSRD, “Sustainable Finance” and “Sustainable Corporate Governance” are central.