The EU Corporate Sustainability Reporting Directive (CSRD) is set to significantly reshape how businesses and nonprofits collaborate when it comes into effect in 2025. According to the latest edition of the C&E Corporate–Non-Profit Barometer, based on insights from over 120 UK and global businesses and nonprofits, the CSRD will increase the demand for transparency regarding social and environmental practices within these partnerships. 

A key finding from the Barometer is that 87% of respondents believe companies will require nonprofits to provide more detailed information about their sustainability efforts. This aligns with the CSRD’s focus on increased ESG (Environmental, Social, and Governance) transparency. However, there is a notable gap between corporate and nonprofit expectations regarding funding. While 80% of businesses believe unrestricted funding is unlikely under CSRD, 56% of nonprofits expect such support. 

Manny Amadi, CEO of C&E Advisory, highlighted the challenge nonprofits face in securing unrestricted funding, emphasizing the importance of demonstrating how such funding can drive greater social and environmental value. 

The CSRD’s emphasis on sustainability reporting is likely to redefine the nature of corporate-nonprofit collaborations, pushing both sectors to align more closely on ESG goals. This shift underscores the growing importance of transparent, accountable partnerships in driving long-term sustainability. 

In addition to its impact on partnerships, the report also touched on the growing role of AI in corporate-nonprofit collaborations, particularly in ESG reporting and research. 

By 2025, as CSRD takes full effect, companies and nonprofits will need to evolve their strategies to meet new ESG expectations and foster more impactful collaborations. 

Sources: 

https://fundraising.co.uk/2024/09/16/nonprofits-may-struggle-to-secure-unrestricted-funding-from-corporate-partners-under-eu-csrd-research-indicates/ 

https://www.lseg.com/en/insights/risk-intelligence/how-many-non-eu-companies-are-required-to-report-under-eu-sustainability-rules