The Corporate Sustainability Reporting Directive (CSRD) is the European regulation that requires large companies to report detailed sustainability data — including GHG emissions by scope, climate risks and targets — with the same rigor as a financial statement. Although it is a European standard, its reach goes far beyond Europe: any Brazilian company that supplies to European companies subject to CSRD may be required to provide emissions data from its own operations, as part of its clients' scope 3.
The implementation calendar is already underway. The first European companies with more than 500 employees began reporting under the CSRD in 2025. In 2026, the scope expands to companies with more than 250 employees or revenue above €40 million. For Brazilian exporting companies — especially in food, agribusiness, manufacturing and services — this means the question "what are your emissions?" is about to arrive from their largest European customers.
The good news is that preparing for the CSRD doesn't require a completely different project from what companies already need to do for CDP, SBTi or their own sustainability reports. The foundation is always the same: a structured emissions inventory, with primary data, documented methodology and clear governance processes. Companies that already have this inventory are one step away from meeting the demands of their European customers. Those that don't yet have it need to start now.
Beyond the CSRD, Brazil is moving toward its own regulations. The CVM has already signaled moves toward mandatory climate risk reporting for public companies, aligned with the TCFD. The global trend is clear: climate transparency has shifted from competitive advantage to requirement. Companies that structure their sustainability data today — and build auditable processes — will be ahead when formal requirements arrive.
