Sustainability is high on the agenda in the business world, and the CSRD (Corporate Sustainability Reporting Directive) is the latest development that will affect companies in the European Union. In this blog post, we update you on exactly what the CSRD means, who has to comply with it and when.

What is the CSRD?

The CSRD, a European Union initiative, aims to improve the transparency and comparability of companies' sustainability reports. This means companies will have to provide more detailed information on their sustainability performance. And that is good news for investors and other stakeholders, as more valuable data will then be available. Of course, that also means that many companies currently have a lot of work ahead of them to communicate transparently and correctly about their sustainability report for the coming year.

Who has to comply?

The CSRD applies to your company if it falls under one of the categories below:

  • Multinationals
    • With more than 500 employees
    • With annual accounts exceeding €25 million and/or net turnover exceeding €50 million
  • Large companies meeting at least two of the three conditions:
    • An average of 250 FTEs or more
    •  Annual accounts from 25 million
    • A net turnover of 50 million euro or more
  • Listed SMEs, according to the European definition

 

But it is not that simple, as unlisted companies can also be affected by the CSRD. After all, large companies can only communicate transparently if they receive the necessary information from their suppliers. Therefore, the new, more extensive reporting obligation will be felt by a lot of companies.

What are the deadlines?

Reporting deadlines vary by target group, depending on their size and the sector in which they operate. For example, multinationals must be able to report in 2025 on fiscal year 2024. Next in line are large companies, with a reporting deadline in 2026 on fiscal year 2025. Finally, listed SMEs will have their turn in 2027, when they will have to report on fiscal year 2026.

We are happy to help you get started

In concrete terms, all this means that from 1 January 2024, multinationals will consequently have to comply with all the reporting requirements of the CSRD. That date is fast approaching. Would you and your organisation like to be guided through this reporting process? Our sustainability and climate experts are ready to help you.