The Corporate Sustainability Reporting Directive (CSRD) is an example of which trend?
Answer and explanation
Correct answer: D. A move from voluntary guidance towards codified, mandatory reporting requirements
- Step 1: The CSRD is an EU law that requires in-scope companies to report sustainability information.
- Step 2: It shows voluntary guidance being replaced by codified rules.
Answer
A move from voluntary guidance towards codified, mandatory reporting requirements.
Why not the others: The CSRD adds reporting duties rather than removing them. It makes reporting mandatory for those in scope, not optional. It adds to financial reporting and does not replace it.
Practise more Regulation on sustainability.
Free questions with an explanation for every one, and full timed ICAEW ACA Certificate Level mock tests.