Does your company fall under the Corporate Sustainability Reporting Directive (CSRD)? This is the case for large capital market-oriented companies as of reporting year 2024, and for other – non-capital market-oriented – large companies as of reporting year 2025 (for exact criteria: see below). In the future, companies that fall under the directive will have to provide extensive information on sustainability in their management report.
:response supports you in preparing your report – from conducting a CSRD-compliant materiality analysis to aligning your sustainability strategy, processes, and data management with the CSRD requirements.
What is the CSRD?
The EU Corporate Sustainability Reporting Directive (CSRD) replaces the previous non-financial reporting obligation (EU Non-Financial Reporting Directive, NFRD). The EU’s aim is to raise sustainability reporting to the same level as financial reporting.
The CSRD is centred on uniform EU standards for sustainability reporting: the European Sustainability Reporting Standards (ESRS). Companies required to report according to the CSRD must therefore public disclosures on their impact on environmental, social, and governance issues; the sustainability risks for their business activities; as well as on targets, processes, and measures to counteract both impacts and risks. In addition to these qualitative disclosures, companies must provide key figures concerning climate, natural resources, and human resources, among others.
Who is affected by the CSRD?
Reporting in accordance with the CSRD will be mandatory for large capital market-oriented* companies from the 2024 reporting year, and for all large companies from 2025. “Large” companies are those that meet two of the following criteria:
(1) more than 250 employees,
(2) balance sheet total of more than 20 million euros,
(3) turnover of more than 40 million euros.
Smaller and medium-sized listed companies will fall within the scope of the CSRD in subsequent years. With the CSRD, sustainability reporting becomes a mandatory part of management reports, and must be published in electronic form (Single Electronic Reporting Format). The contents of the sustainability report must also be subjected to an external audit with limited assurance.
Due to the extensive nature of the requirements of the European Sustainability Reporting Standards, we recommend preparing for the reporting obligation at an early stage. We are happy to assist you in this process.
*All capital market-oriented companies with more than 500 employees and more than 20 million euros in total assets or 40 million euros in turnover – this corresponds to the group of users of the EU Non-Financial Reporting Directive.
Our CSRD services for you:
Gap analysis: comparison of the existing sustainability strategy, the data budget, and the reporting processes with CSRD/ESRS requirements
Roadmap for the step-by-step implementation of the CSRD/ESRS requirements
Preparation of a materiality analysis according to CSRD based on the principle of dual materiality
Analysis of sustainability risks
Advisory support for the introduction and further development of strategies and processes for sustainability management
Determination of the qualitative information and indicators to be collected according to CSRD, as well as advice on data collection and the establishment of a data management system
Conception and preparation of a sustainability report (or chapter of the management report)
The double materiality
