The Corporate Sustainability Reporting Directive (CSRD) is a European Union regulation that aims to improve and standardize sustainability reporting by companies. Replacing the Non-Financial Reporting Directive (NFRD), the CSRD significantly expands the scope of organizations required to report on environmental, social, and governance (ESG) impacts. Under this directive, companies must provide detailed, audited reports on their sustainability performance, climate risks, and the effects of their activities on society. The goal is to increase transparency and accountability, driving the transition to a more sustainable and socially responsible economy.