How CSRD is driving new EU grantmaking opportunities

The Corporate Sustainability Reporting Directive (CSRD) in the EU, which requires corporations to keep sustainability top of mind, doesn’t just have ramifications for private companies. In fact, the prioritisation of sustainability efforts means that there will be more demand for nonprofits and their expertise, leading to exciting new opportunities for grantmakers.

Let’s explore what these new guidelines mean not just for corporations but for the nonprofits and community organisations around them.

What is CSRD? What does CSRD stand for?

The Corporate Sustainability Reporting Directive (CSRD) is a new EU regulation that significantly expands sustainability reporting requirements for companies operating within the European Union.  

In essence, the CSRD aims to improve transparency around corporate sustainability practices by requiring companies to disclose detailed information about their environmental impact, social responsibilities and governance practices. 

How is CSRD driving new grantmaking opportunities?

While CSRD primarily impacts private corporations, the policy is important for grantmakers to understand, too. 

In fact, there will most likely be some CSRD opportunities for grantmakers: new corporate sustainability priorities will potentially generate opportunities around innovation, impact measurement, partnerships and cascade funding.

1. New sustainability innovation

At its core, CSRD requires companies to now report on sustainability metrics, encouraging companies to invest in greener technologies and processes that will help them become more eco-friendly. Companies that fail to demonstrate this commitment to sustainability may find themselves at a disadvantage when securing investments or funding.

That’s where grantmakers come in. 

This new pressure for eco-friendly and sustainable practices will likely encourage innovation in areas like carbon reduction, biodiversity protection, and ethical supply chains—opening opportunities for grantmakers to support research, pilot programs and startups that align with these priorities.

2. Data measurement and reporting

CSRD requires businesses to report on their sustainability impact.

But, many companies don’t have the right personnel, process, or expertise in place to gather or analyse that well. Because of that, grantmakers have an opportunity to fund and support organisations that do that exact work (data gathering, measuring, and analysis).

3. Public-private partnerships

The introduction of CSRD will encourage private companies who are looking to integrate sustainability into their business models to seek partnerships with nonprofits with expertise in those areas. 

This provides a great opportunity for grantmakers to fund these collaborative initiatives.

4. Cascade funding priorities

CSRD’s focus on sustainability is influencing how EU cascade funding is allocated. 

With the introduction of CSRD, sustainability projects around climate action will have priority.

For grantmakers, this is another great opportunity to align their funding strategies with these emerging EU priorities, ensuring their grantees remain eligible for additional funding sources.

CSRD and beyond

CSRD isn’t just important for private companies to understand — it’s an essential change that provides incredible opportunities for the nonprofit world, too.

From new innovations to stronger partnerships, grantmakers and their grantees have the opportunity to make a greater impact for years to come.