The Corporate Sustainability Reporting Directive (CSRD) is an EU regulation that sets the standard for sustainability reporting. It requires companies to disclose detailed information about their environmental, social, and governance (ESG) impacts.
CSRD regulations aim to enhance transparency, accountability, and comparability in corporate sustainability practices.
Determining whether your company falls under CSRD reporting requirements can be complex. This process, often referred to as CSRD scoping, involves assessing various factors such as company size, financial metrics, and EU market presence.
Since the European Parliament approved Omnibus I in December 2025, the threshold for CSRD reporting has been adjusted to:
1000+
employees
€450M+
turnover
CSRD timeline
Being top of the new schedule, as the details emerge, will be crucial for compliance. Following the Omnibus I changes, there are some key points to be aware of.
EU member states will have until 2028 to turn the directive into national law.
Wave 1 CSRD companies that now fall outside the new thresholds get a ‘transition exemption’ for FY 2025-2026.
How it works
The CSRD scope encompasses Environmental, Social, and Governance (ESG) factors. This approach enables businesses to provide stakeholders with a holistic view of their sustainability efforts and risks, promoting transparency and accountability.
“Normative has been a great support to Aasted’s CSRD preparation and our efforts to reduce our carbon emissions.”
Jesper Jerlang Sustainability Manager at Aasted
CSRD reporting is the process of disclosing detailed information about a company’s environmental, social, and governance (ESG) impacts as required by the EU’s Corporate Sustainability Reporting Directive.
Companies that meet the CSRD thresholds for size, financial metrics, or EU market presence should report under CSRD. Since Omnibus I was approved in December 2025, the thresholds for CSRD reporting are now set at companies with more than 1000 employees and over €450M+ turnover.
CSRD scoping is the process of determining whether your company falls within the scope of CSRD reporting requirements. It involves analyzing your company’s size, financial metrics, and EU market presence against the CSRD thresholds. This crucial step helps businesses understand their reporting obligations under the CSRD regulations.
Yes, CSRD requires comprehensive reporting on all emissions scopes, including Scope 3. This covers indirect emissions from a company’s value chain, making it a crucial component of CSRD reporting.
A CSRD report typically includes detailed information on a company’s environmental impact (such as carbon emissions and resource use), social factors (like employee welfare and community engagement), and governance practices. The report should provide a comprehensive view of the company’s sustainability efforts, risks, and strategies in line with CSRD requirements.
While the UK is no longer part of the EU, companies doing business in the EU or with EU-based subsidiaries may still need to comply with CSRD regulations. UK-based companies should assess their EU market presence to determine if they fall under CSRD requirements.
Non-compliance with CSRD regulations can result in significant consequences, including:
Since the European Parliament approved Omnibus I in December 2025, CSRD applies to companies with 1000+ employees and €450M+ turnover.