What is CSRD Reporting?

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CSRD compliance: What you need to know

The Corporate Sustainability Reporting Directive (CSRD) is an EU regulation that sets new standards 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.
They go beyond previous frameworks by introducing more comprehensive requirements and expanding the number of companies that need to comply.

Is my company
affected by CSRD?

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. Some companies, such as Public Interest Entities with 500+ employees, are already required to report. For EU large companies, if you meet two of the following three conditions, you will need to report from 2026. Additional categories of companies may be affected by CSRD, including non-EU companies and listed micro-undertakings.  Refer to the eligibility table below for complete requirements.

€50M

in net turnover, accounting for the profitability of your business

€25M

in assets, accounting for the size of your business

250

or more employees, accounting for the size and the social impact of your business

CSRD timeline:
When do I need to report?

The CSRD implementation follows a phased approach, allowing companies of different sizes to adapt to the new reporting requirements over time. Understanding this schedule is crucial for your business to prepare and ensure timely compliance with CSRD regulations.

The timeline graphic below shows when companies need to start calculating and reporting their sustainability data, as well as the fiscal years for which disclosures are required. Additionally, it outlines the progression of auditing requirements from limited to reasonable assurance.

Business size20242025202620272028
Largest
500+ employees
*These companies were previously subject to the Non-Financial Reporting Directive (NFRD)
Calculate + ReportDisclosure required – beginning with FY 24

Limited auditingReasonable auditing*
Large
250+ employees
€50M in turnover and/or €25M in total assets
Calculate + ReportDisclosure required – beginning with FY 25
Limited auditingReasonable auditing*
SME
10+ employees
€0,9M+ in turnover and/or €0,45M+ in assets
*Can opt out until 2028
Calculate + ReportDisclosure required – beginning with FY 26
Limited auditingReasonable auditing*
*The EU will determine reasonable audit requirements by October 2028

How it works

Key components of CSRD reporting

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.

  • Environmental factors

    • Climate change mitigation and adaptation
    • Water and marine resources
    • Pollution prevention and control
    • Biodiversity and ecosystems
    • Circular economy
  • Social factors

    • Equal opportunities and working conditions
    • Human rights
    • Fundamental freedoms, democratic principles, and standards
  • Governance impact

    • Role of administrative, management, and supervisory bodies
    • Business ethics and corporate culture
    • Political engagements
    • Relationships with business partners

“Normative has been a great support to Aasted’s CSRD preparation and our efforts to reduce our carbon emissions.”

Jesper Jerlang headshot
Jesper Jerlang Sustainability Manager at Aasted
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Are you ready for CSRD reporting?

Prepare for CSRD reporting with confidence. 
Our quick assessment tool helps you:

  • Evaluate your current preparedness
  • Identify areas needing improvement
  • Receive a personalized readiness score
  • Get tailored recommendations for next steps
Start your CSRD assessment

FAQ

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. This includes large EU companies, listed SMEs, and certain non-EU companies with significant EU operations.

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:

  • Financial penalties
  • Reputational damage
  • Loss of investor confidence
  • Exclusion from public procurement processes
  • Increased regulatory scrutiny

CSRD applies to a wide range of companies, including:

  • Large EU companies
  • Listed SMEs in the EU
  • Non-EU companies with significant EU operations
  • Companies in specific high-impact sectors

Simplify your
CSRD journey