The Corporate Sustainability Reporting Directive (CSRD).

The CSRD will come into force in stages:

For large companies and listed companies that are already subject to the Non-Financial Reporting Directive (NFRD), the CSRD will apply from 1 January 2024, with reports due in 2025.

For large companies that are not currently subject to the NFRD, the CSRD will apply from 1 January 2025, with reports due in 2026.

For listed SMEs and other undertakings, the CSRD will apply from 1 January 2026, with reports due in 2027.

The CSRD is a significant expansion of the scope of companies that are required to report on sustainability. It also introduces new requirements for the content and quality of sustainability reporting.

The CSRD is expected to have a major impact on the way that companies in the EU manage and report on their sustainability performance. It is important for companies to start preparing for the CSRD now, even if they are not required to report until 2025 or later.

The Corporate Sustainability Reporting Directive (CSRD) is mandatory for all large companies and all listed companies in the EU, including EU subsidiaries of non-EU parent companies.

Large companies are defined as companies that meet at least two of the following three criteria:

  • More than 250 employees

  • Net turnover of more than EUR 40 million

  • Total balance sheet assets of more than EUR 20 million

Listed companies are companies whose shares are admitted to trading on a regulated market.

The CSRD is also mandatory for small and medium-sized enterprises (SMEs) that are listed on a regulated market. However, SMEs can opt out of the CSRD until 2028.