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CSRD and reporting requirements

Corporate Sustainability Reporting Directive (CSRD): what is it? And what does it mean for businesses? Rather than focusing solely on reporting figures, the CSRD aims to ensure that businesses incorporate sustainability into their long-term plans and decisions.

CSRD en rapportagevereisten
Who must report?

This means that companies must:

  • Document how your company makes decisions regarding sustainability: what is the process you follow in this regard
  • Explain why you make certain sustainable choices
  • Report only the figures (KPIs) relating to these well-founded choices

This offers opportunities for companies to integrate sustainability into their business strategy and thus contribute to broader organisational goals.

In short, the CSRD encourages companies to make smart decisions that promote sustainability and, in doing so, the growth of your business, rather than focusing solely on the bottom line.

Would you like to know more about our unique framework, which enables companies to evolve in a controlled and structured way from financial to sustainable business operations? Or would you like to start taking the first steps towards CSRD compliance? Or would you like to use our CSRD scan to assess how ‘CSRD-ready’ your company is? Please feel free to contact us!

Who must report?

The following categories of companies will (eventually) have to comply with the CSRD reporting requirements:

  • Listed companies in the European Union. Not only large companies but also SMEs, as well as non-EU companies listed on European stock exchanges.
  • Large companies. Companies that exceed at least two of the following criteria for two consecutive financial years:
    • €25 million in total assets
    • €50 million in net turnover
    • An average of 250 employees
    • Also subsidiaries of non-EU parent companies.
  • Companies outside the European Union must meet the following dual condition:
    • Net turnover of more than €150 million in the EU (for the last two consecutive years)
    • Have at least one large subsidiary or a subsidiary listed on an EU stock exchange, or an EU branch with a turnover of at least €40 million in the previous financial year.

The CSRD obligation applies only to the EU-listed subsidiary or the EU office. In such cases, there is no requirement to report on a consolidated group basis outside the EU.

Unlisted SMEs and micro-enterprises are not currently required to comply with the CSRD, but they would be well advised to take it into account in their business operations.

Implementation

The CSRD will be phased in between 2025 and 2028

Tijdslijn CSRD

You can also find more information here: Corporate Sustainability Reporting Directive – CSRD | VLAIO