CSRD and ESRS are often used as if they were synonyms. They are not. This short guide clarifies the distinction, which matters for scoping any sustainability reporting project.
The short answer
- CSRD is the law. It defines who reports, when, and with what assurance.
- ESRS are the standards. They define what goes into the report.
CSRD without ESRS would be a mandate without content. ESRS without CSRD would be a template without a legal driver.
CSRD — the directive
The Corporate Sustainability Reporting Directive (Directive (EU) 2022/2464) is the EU law adopted in December 2022 that:
- Defines which companies must report (~50,000 in scope).
- Sets the reporting timeline (phase-in from FY2024 to FY2028).
- Requires independent assurance (limited, moving to reasonable).
- Mandates digital tagging (XBRL, feeding ESAP).
- Requires reporting under the ESRS.
ESRS — the standards
The European Sustainability Reporting Standards, adopted by delegated act in July 2023:
- Twelve standards: 2 cross-cutting (ESRS 1, 2) + 5 environmental (E1–E5) + 4 social (S1–S4) + 1 governance (G1).
- Applied through double-materiality assessment.
- Detailed disclosure requirements at data-point level (~1,000+ data points across the full set).
See our ESRS overview for the standard-by-standard breakdown.
How they interact
A company subject to CSRD must:
- Conduct a double-materiality assessment against every topical ESRS.
- Report the mandatory ESRS 1 and ESRS 2 disclosures.
- Report the topical ESRS disclosures for every material topic.
- Obtain independent assurance.
- Publish digitally in XBRL format.
What often confuses people
- "We're preparing a CSRD report." More precisely: preparing a sustainability statement under CSRD, in compliance with the ESRS.
- "ESRS applies to us." Only via CSRD. If a company is not in CSRD scope, it can voluntarily apply ESRS (the VSME — Voluntary SME Standard — is a lighter version for out-of-scope SMEs).
- "Omnibus killed CSRD." The 2024 Omnibus package proposes adjustments to scope, thresholds and phase-in but does not abolish CSRD or ESRS.
Related reading
Frequently asked questions
Are ISSB standards a substitute for ESRS?+
For CSRD-in-scope companies, no. ESRS is mandatory. ISSB IFRS S1/S2 is broadly interoperable on climate financial materiality but does not cover impact materiality or non-climate topics.
Is there a VSME standard for SMEs?+
Yes. EFRAG has published a Voluntary SME Standard (VSME) as a proportionate framework for SMEs not in CSRD scope. Increasingly used as a supply-chain-request standard.
Do non-EU companies have to report?+
Yes if they meet the third-country thresholds: net EU turnover >€150m and either a large EU subsidiary or a branch >€40m turnover. First reports from FY2028.
This article follows Redigo Carbon's editorial standards: factual claims reference recognised frameworks — GHG Protocol, CSRD, ESRS, the Sustainability-Linked Loan Principles, the Green Loan Principles — and Redigo's opinions are labelled as such.
What this article is based on.
- Directive (EU) 2022/2464 — Corporate Sustainability Reporting Directive — EUR-Lex
- Commission Delegated Regulation (EU) 2023/2772 — First set of ESRS — EUR-Lex
- European Commission — Corporate sustainability reporting — European Commission
- EFRAG — ESRS standards and guidance — EFRAG
- Regulation (EU) 2023/956 — Carbon Border Adjustment Mechanism — EUR-Lex
- Regulation (EU) 2020/852 — EU Taxonomy Regulation — EUR-Lex
- Regulation (EU) 2019/2088 — Sustainable Finance Disclosure Regulation (SFDR) — EUR-Lex
- Regulation (EU) 2023/1115 — EU Deforestation Regulation — EUR-Lex
- IFRS S1 / S2 — ISSB sustainability disclosure standards — ISSB / IFRS Foundation
- TCFD — Recommendations of the Task Force on Climate-related Financial Disclosures — TCFD / FSB
Redigo Carbon distinguishes between regulatory requirements, industry standards, best practice and Redigo's own recommendations. See our editorial standards for how we research, cite and update this content.
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