CSRD and SFDR metric comparison

The EU leads the way in sustainability regulation

In the same way that we have been through a process of harmonisation of international accounting standards, we are now at a turning point in the harmonisation of global sustainability standards.

However, while clear improvements in the standardisation of reporting frameworks are being made, the EU’s CSRD goes beyond any other global regulation and surpasses it’s counterpart, SFDR, in many ways. The most prominent conceptual variance is the inclusion of double materiality. Double materiality requires companies to report on how they impact the environment and people and how the environmentand people impact the company financially. The EU is breaking new ground in this regard, as double materiality is an entirely new concept within the regulatory realm.

This whitepaper is aimed at any companies who have gathered data for SFDR reporting purposes and are now going to be subject to further CSRD requirements. This metric comparison aims to provide clarity around the interoperability of the two regulations, and prevent unnecessary reporting repetition. In this whitepaper, we have mapped each of the CSRD metrics to the SFDR’s Principle Adverse Impact indicators (PAIs) in a comprehensive table.

CSRD regulations will be onerous for every company. Before embarking on the data collection process, why not find out how to streamline your efforts?

This metric comparison will reduce repeated work, but to eliminate it, and to automate the processes behind data collection through to reporting, find out more about our software by booking a personalised demo. ‍

Update as of December 2023
‍*On the 4th of December, the European Supervisor Authorities published a report containing proposed amendments to SFDR’s regulatory technical standards.
The proposals are:

• Additional disclosures for sustainable investments
• Introducing new, and specifying existing, PAIs
• New disclosures on decarbonisation targets
• Revisions to disclosure templates

‍The European Commission will now take until March 2024 to decide on the proposals. To find out more, read the report or contact a member of our team. The information in this whitepaper is up to date as of December 2023.