How to comply with CSRD?

In 2021 the EU passed the Corporate Sustainability Reporting Directive (CSRD). It is a law that prescribes companies must publicly disclose their organization’s environmental and social impact. The CSRD will also provide a framework to do so with the goal of making the disclosed sustainability data comparable, relevant and reliable. Ultimately, by making companies to disclose sustainability data, stakeholders like investors, consumers and policy makers, can make better informed decisions, influencing these companies to move towards a more sustainable business.

What companies will be impacted by CSRD?

If two of the three criteria below apply to your organization, CSRD will affect your organization:

• More than 40 million EUR net turnover
• More than 20 million EUR balance sheet total
• More than 250 employees

Our timeline shows the steps the European Commission has already taken and is planning to take. We have also included an action plan that many of our clients follow to prepare for mandatory reporting in 2026.

What concrete changes does CSRD bring to companies' reporting of non-financial information?

Required disclosures

1. Double materiality impacts, key risks and opportunities affecting the business (financial implications) or business affecting the surrounding environment and societies (impacts).
2. Not only historic performance disclosures, but forward-looking perspective up to 10 years.
3. Time-bound sustainability-related targets, metrics and action plans.
4. Enhancing the value chain perspective.
5. Roles of administrative, management and supervisory bodies with regard to sustainability management.

Reporting practices

• Reporting in the Management Report (vs. previously in Sustainability Report)
• Compulsory assurance (limited first, reasonable after the transition period)
• Highest management engagement
• Electronic reporting format (XHTML) and reporting to European Single Access Point (comparability)

Being able to comply with CSRD and leverage positive business opportunities require systematic development and transformation

We support our clients in making CSRD compliance work for their organisations. Part of the CSRD reporting drives companies to report completely new KPIs that have not been measured before. That is why they have to design new and transform existing internal processes aimed at collecting, monitoring and clarifying sustainability data.

Get in touch with our team to find out more!