If you’ve never heard of the Corporate Sustainability Reporting Directive (CSRD), that’s about to change. The EU’s sweeping ESG disclosure regulation is already reshaping how global companies report their environmental and social impacts — and U.S. commercial property firms may be more exposed than they think.
In 2025, it's not just about where your company operates — it's about who you do business with. And if any of those entities are in the EU, the CSRD might already apply to you.
The CSRD is the European Union’s new standard for corporate sustainability reporting. It expands on the previous Non-Financial Reporting Directive (NFRD), dramatically increasing:
Who must report (many more companies, including non-EU firms)
What must be reported (detailed ESG data, risk exposure, and governance)
How it’s reported (using standardized, auditable digital formats)
The goal? To make ESG performance as transparent — and comparable — as financial performance.
Surprisingly, yes.
If your company is:
A subsidiary of an EU-based parent company
A supplier to a company reporting under CSRD
An investee or portfolio holding of an EU financial institution
A partner in a joint venture with EU exposure
…you may be required to submit sustainability data — even if you’re based entirely in the U.S.
CSRD’s reach is global — and it comes with legal weight.
Many real estate firms and asset managers fall into the net via:
Cross-border capital partnerships
European-based REITs or funds
Large tenants with EU ESG obligations
Global supply chains for building materials
In each case, your ESG performance data may be requested, audited, or factored into another company’s disclosures — even if you’re not filing directly.
CSRD demands that firms report:
Scope 1, 2, and 3 emissions (yes, including embodied carbon and tenant energy use)
Climate risk exposure (physical and transitional)
Social and workforce metrics (DEI, health, equity)
Governance and policy frameworks
All of this must be:
Digitally tagged using European Sustainability Reporting Standards (ESRS)
Auditable by third-party assurance providers
Filed in a format compatible with EU regulators
Map Your Exposure
Identify EU-linked partners, clients, or investors in your ecosystem.
Centralize ESG Data Now
Even if you don’t need to file this year, start collecting Scope 1–3 data and resilience metrics.
Align with CSRD-Ready Frameworks
Tools like GRI, TCFD, and SASB will help bridge the gap.
Signal Your Readiness
If you’re ahead of the curve, make it known — buyers and partners are looking for low-friction compliance.
[ESG: U.S. Political and Regulatory Landscape]
For decades, U.S. firms could treat ESG disclosures as optional or cosmetic.
With CSRD, that era is over — even if you never cross an ocean.
The firms that thrive in this new landscape will be the ones who treat ESG like accounting: detailed, auditable, and part of the business infrastructure.