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The Corporate Sustainability Reporting Directive (CSRD) requires companies to report on sustainability. Who is affected, when it applies and how to prepare – explained concisely.
EU directive on mandatory, audited sustainability reporting – part of the European Green Deal.
Large companies and listed SMEs that meet the size thresholds; phased introduction.
First application phased in from financial year 2024 – the timeline is being shifted by the EU Omnibus package.
Reporting under the ESRS, in the management report, digitally tagged and externally audited.
The Corporate Sustainability Reporting Directive (CSRD) is the EU directive that fundamentally expands and standardizes corporate sustainability reporting. It replaces the earlier NFRD: many more companies become subject to reporting, and the requirements for scope, comparability and assurance rise significantly.
The CSRD expands the set of reporting companies in stages, based on thresholds for balance sheet total, turnover and headcount. The ongoing EU Omnibus process is expected to raise these thresholds and narrow the scope.
First application is phased by company type. The Omnibus package postpones several waves – what matters is the current status of national transposition.
Reporting follows the European Sustainability Reporting Standards (ESRS) across environmental, social and governance topics. The starting point is the double materiality assessment: companies assess both their impact on people and the environment and their financial opportunities and risks.
With the Omnibus proposal the European Commission wants to simplify reporting obligations: higher thresholds, postponed deadlines and a slimmed-down ESRS data set. The underlying obligation remains – companies should not postpone preparation but use the reduced scope.
Structured preparation starts early and works from data rather than spreadsheet sprawl.
The CSRD is the directive (the 'whether' and 'who'); the ESRS are the concrete standards you report against (the 'how' and 'what').
Directly only to listed SMEs. Non-listed SMEs can report voluntarily under the VSME standard – often at the request of banks or large customers.
Yes. The CSRD requires external assurance – initially limited assurance, moving toward reasonable assurance over time.
It is expected to raise thresholds, postpone deadlines and reduce the number of data points. The underlying reporting obligation remains.
In the company's management report, digitally in the single electronic format (ESEF) with XBRL tagging.
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