The European Union’s Corporate Sustainability Reporting Directive (CSRD) is reshaping how sustainability is measured and disclosed not just in Europe, but across global value chains and Indian exporters are directly in its path. Even if your business isn’t based in the EU, selling to EU based companies means your ESG practices will soon come under scrutiny. The CSRD introduces both new pressures and significant opportunities for Indian exporters, driving a shift towards more responsible, transparent and resilient business practices.

What is CSRD?

The Corporate Sustainability Reporting Directive (CSRD) is a European Union (EU) directive that mandates large companies to report on their environmental, social, and governance (ESG) impacts. The CSRD, adopted by the EU in 2022, significantly expands sustainability disclosure requirements. It aims to provide clear and comparable information on sustainability performance, helping investors and other stakeholders assess the risks and opportunities associated with a company’s sustainability practices. The CSRD builds upon the Non-Financial Reporting Directive (NFRD) and expands the scope and reporting requirements.

Key highlights of the CSRD

Under the CSRD, all affected companies must report on their environmental, social, and governance (ESG) impacts in detail.

• Double materiality assessment: Companies must report both how sustainability risks affect their financial performance and how their operations impact the environment and society.
• Indirect impacts: Covering all links in the business chain.
• Alignment with European Sustainability Reporting Standards (ESRS): A standardized reporting framework to ensure consistent and comparable disclosures across industries and countries.
• Third party assurance: ESG reports must be externally audited to enhance accuracy and trust.
  
  

Who Needs to Comply?

• All 27 EU Member States are legally obligated to implement the CSRD into their national law.
• Large companies based in the EU.
• Countries in the European Economic Area (EEA); including Norway, Iceland and Liechtenstein.
• EU listed small and medium sized enterprises (SMEs), gradually brought under CSRD compliance.
• Non-EU companies that operate within the EU and generate more than €150 million in annual EU revenue and have at least one branch or subsidiary in the EU.
  
  

So why should Indian exporters care?

Because EU companies are passing the pressure downstream demanding ESG compliant data from their suppliers, even if those suppliers aren’t legally bound by CSRD. This means Indian companies with significant business ties to the EU or those that are part of EU companies supply chains could be indirectly obligated to align with CSRD requirements.

Though Indian companies may not fall directly under the CSRD’s legal scope, they play a critical role in the global supply chains of EU-based firms. The directive requires EU companies to evaluate and disclose the ESG performance of their supply chain partners. As a result, Indian exporters are now part of the compliance conversation. If EU buyers are to meet their CSRD obligations, they need their Indian suppliers to demonstrate responsible practices and provide relevant ESG data.

Impact on Indian Exporters:

• Increased ESG disclosure requests: Expect detailed ESG questionnaires and carbon data requests from EU buyers.
• Stronger due diligence requirements: You’ll be expected to prove ethical sourcing, labour standards and environmental responsibility.
• Double materiality focus: Businesses must understand and report both the financial impact of sustainability issues and the impact of their operations on people and the planet.
• Risk of losing contracts: Suppliers without ESG policies may face disqualification or be replaced by more compliant competitors.
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How CeroED can add value!

Indian exporters are under growing pressure to align with global ESG and carbon disclosure standards as the European Union’s Corporate Sustainability Reporting Directive (CSRD) takes effect. In response, CeroED’s ARRO platform empowers businesses to navigate this evolving regulatory landscape with confidence. By integrating frameworks like CSRD and other global ESG standards, ARRO enables companies to set industry-specific goals, track their performance and ensure compliance with CSRD requirements which streamlines the path toward sustainable growth and global market access. CeroED’s ARRO platform supports this shift by offering end-to-end ESG solutions that help exporters track, verify and transparently report their sustainability performance. Some features of ARRO are: 

• Automated ESG & carbon data collection: Simplifies tracking and managing sustainability data required under CSRD.
• Alignment with global standards: Ensures reporting meets international frameworks demanded by EU regulations.
• Streamlined materiality assessment: AI-driven tools help identify and prioritize key ESG risks and impacts, fulfilling CSRD’s double materiality requirement.
• Easy collaboration across supply chains: Ready-to-use ESG questionnaires can be shared with suppliers and internal teams to collect consistent, reliable data.
• Real time dashboards & audit ready reports: Provides instant insights and professional reports to meet CSRD’s detailed disclosure and assurance needs.
• Blockchain enabled verified reporting: Enhances transparency and helps exporters avoid greenwashing while confidently communicating sustainability progress.
• Supports compliance & market access: Enables exporters to meet evolving EU ESG regulations, protecting contracts and improving competitiveness.
  
  

Want to know how ARRO operates? 

Email us at info@ceroed.com 
Visit www.ceroed.com 

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