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Sustainability in business - where to start?

The European Union’s Corporate Sustainability Reporting Directive (CSRD) is a legal mandate requiring businesses to provide sustainability disclosures to foster transparency about environmental and social risks and opportunities.

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Sustainability Reporting explained ...


What is the CSRD?

The CSRD replaces the previously applicable Non-Financial Reporting Directive (NFRD), which was the basis for the reporting obligation on corporate social and environmental responsibility in the EU. 


What needs to be reported?

The CSRD introduces the European Single Electronic Reporting Format (ESRS) framework and mandates specific disclosures on environmental, social, and governance (ESG) issues. Companies must regularly report on the social and environmental risks they face, as well as the impact of their activities on the environment and society.

In short, the CSRD sets the requirements, while the ESRS Standards define the content of the new disclosure requirements. 


The CSRD also introduces the concept of double materiality. It means that not only the impact of the climate on a company is considered material, but also the impact of the company on the climate. This helps companies better understand their impact on the environemnt and ensures investors and stakeholders are fully informed about a company’s sustainability performance.


How do companies need to report?

Disclosures under CSRD must be made public and independently assured by a third-party provider. 


Who is affected?

The CSRD applies to a wide range of companies, including:

  • large European companies,
  • listed SMEs,
  • non-EU companies with EU subsidiaries.

To be considered a ‘large company’ under CSRD, organisations must meet two of the three criteria:

  • total assets exceeding EUR 20 million,
  • net turnover of EUR 40 million,
  • more than 250 employees.


With the CSRDs planned implementation in January 2024 for all qualifying organisations, it’s essential for businesses to make preparations for upcoming changes.

csrd timeline affected companies




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Andy Thompson

Head of Sustainablity

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