NFRD (Non-Financial Reporting Directive)

The Non-Financial Reporting Directive (NFRD) (Directive 2014/95/EU) was the predecessor EU sustainability reporting framework to the CSRD, requiring large public interest entities with >500 employees to disclose non-financial information on environmental, social, employee, anti-corruption, and human rights matters. The NFRD was criticised for lack of consistency, comparability, and depth of disclosure. It was replaced by the CSRD (Directive (EU) 2022/2464), which introduced mandatory ESRS standards and expanded scope. Entities already reporting under the NFRD (approximately 11,000 companies) were the original Wave 1 CSRD entities.

NFRD (Directive 2014/95/EU); CSRD (Directive (EU) 2022/2464) repealing and replacing the NFRD.

Companies that previously reported under the NFRD transitioned to CSRD/ESRS reporting starting with the 2024 financial year. NFRD reporting under existing national frameworks may continue transitionally but must be replaced by CSRD-compliant reporting. Companies that previously only reported under the NFRD should assess: whether they remain in scope under Omnibus I’s revised thresholds; what the transition from NFRD’s principles-based disclosure to ESRS’s data-point-driven approach requires.