Frequently asked questions about the CSRD

The European Union (EU) aims to become the first climate-neutral continent. This is supported by the European Green Deal and action plan that includes commitments, investment plans and regulations to report on sustainability. The European Commission has approved a package of measures that will allow investors to better see which investments are sustainable. The Corporate Sustainability Reporting Directive (CSRD) also requires companies to account for their non-financial performance.

The CSRD requires companies to report non-financial information on ESG (environmental, social and governance) issues. It includes large companies that meet at least two of the three criteria: 250 employees, turnover of €40 million or a balance sheet total of €20 million. Medium-sized and small companies are exempted from this obligation, but must still monitor sustainability developments and prepare for transparency in this area.

The Corporate Sustainability Reporting Directive (CSRD) is a directive stating that more and more companies will be required to report on their human and climate impact from 2024 and applies to different groups of companies at different times. For financial years starting on or after 1 January 2024, it applies to large listed companies, for financial years starting on or after 1 January 2025, it applies to large companies and for financial years starting on or after 1 January 2026, it applies to listed SMEs, small and non-complex credit institutions and insurance companies.

In order to be prepared for CSRD regulations, it is important for companies to stay on top of developments in this area and prepare for sustainability transparency.

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