12.04.2023 - Request guide
The Corporate Sustainability Reporting Directive (CSRD) adopted by the EU Parliament in November 2022 has far-reaching implications for corporate sustainability reporting. The existing regulations on non-financial reporting will be significantly expanded by the CSRD.
Who is affected by the CSRD?
All EU-regulated companies (with the exception of micro-enterprises) listed on an EU-regulated market, as well as non-capital-market-oriented companies with a balance sheet total of more than 25 million euros, net sales of more than 50 million euros or a number of employees of more than 250 are affected by the new reporting requirements. This affects an estimated 50,000 companies in the EU, including 15,000 in Germany alone.
What are the main changes brought about by the CSRD?
The CSR Directive follows a double materiality approach. Companies must therefore present both the impact of sustainability aspects on their economic situation and the impact of their business activities on sustainability aspects.
Reporting must include information on the following topics:
Sustainability goals and a decarbonization pathway
The role of the management board and supervisory board
Main negative and positive impacts of the company
Intangible resources not yet recognized in the balance sheet
In addition, with the CSRD there is no longer an option to publish non-financial information in a separate report. In the future, sustainability information must be included with the management report.
What are the main changes brought about by the CSRD?
The CSR Directive follows a double materiality approach. Companies must therefore present both the impact of sustainability aspects on their economic situation and the impact of their business activities on sustainability aspects.
Reporting must include information on the following topics:
Sustainability goals and a decarbonization pathway
The role of the management board and supervisory board
Main negative and positive impacts of the company
Intangible resources not yet recognized in the balance sheet
In addition, with the CSRD there is no longer an option to publish non-financial information in a separate report. In the future, sustainability information must be included with the management report.
What are the implications of the CSRD for companies?
The CSRD requires extensive sustainability reporting from the companies affected. We recommend careful and early preparation for the new reporting requirements. This includes a comprehensive review of existing sustainability reporting, as well as the implementation of new reporting processes and systems.
Learn more in our CSRD guide
In our CSRD Guide, we have summarized the key aspects for companies and the timeline of the CSRD. You can request the CSRD guide free of charge at c.leopold@sustainabilityand.com.
