Assessing the corporate readiness for sustainability reporting: An analysis of companies subject to the Non-Financial Reporting Directive (NFRD) in anticipation of the forthcoming Corporate Sustainability Reporting Directive (CSRD)

The evolution of corporate sustainability reporting over the last few decades marks a wider shift in the corporate sphere towards a more ethical and transparent approach to business. The historical perception of sustainability as a marginal activity has evolved into a fundamental cornerstone within many corporate operations. This paper examines the level of preparedness of companies required to publish sustainability reports under the current Non-Financial Reporting Directive (NFRD), with a focus on the forthcoming implementation of the Corporate Sustainability Reporting Directive (CSRD). Companies already subject to the NFRD will be bound by the new guidelines from the 2024 financial year, with the first reports published in 2025. The reports prepared under the current NFRD will be subject to extensive comparative analysis against the proposed CSRD regulations, using a pre-determined set of assessment criteria. These selected criteria reflect the draft 12 European Sustainability Reporting Standards (ESRS) proposed by the European Financial Reporting Advisory Group (EFRAG). The ten companies surveyed showed a significant level of readiness to publish their 2024 annual reports under the CSRD in 2025. Nevertheless, the study highlights the importance of identifying and addressing areas for improvement.