The negotiations regarding the Corporate Sustainability Reporting Directive (CSRD reporting) were concluded at the EU level just before Midsummer in 2022. Large companies are already obliged to annually publish information on how much of their operations are in line with the taxonomy’s climate and environmental goals.
With CSRD reporting, a larger part of companies operating in the EU will be covered by taxonomy reporting, and in addition, companies must publish more detailed information in connection with their activity report, e.g., about the environmental and social impacts of their business.
CSRD reporting is gradually affecting different sized companies The scope includes:
- Starting from 1 January 2024, listed companies employing more than 500 people (i.e. those that are already covered by the NFRD and are obliged to prepare a statement of non-financial information and to publish information according to the EU taxonomy).
- From January 1, 2025, listed and unlisted companies with more than 250 employees and more than €40 M in turnover.
- SMEs listed from 1 January 2026.
The reporting is carried out in accordance with the European sustainability reporting standards, which are still being prepared. To ensure reliable information, sustainability reports must be certified by an independent inspector in the future.
CSRD reporting increases companies’ sustainability requirements
Sustainability will in the future have a bigger role in the evaluation of companies. In addition to the reporting obligations, CSRD sets other requirements for companies. For example, in the future companies must plan how to take climate and other sustainability risks into account in the business model and strategy, as well as the transition to a climate-neutral economy.
The role of the company’s management and board of directors must now be strengthened in accordance with sustainability goals. The interest of customers and investors in responsible and environmentally sustainable business has grown. This contributes to the financing companies receive for sustainable and responsible projects.
The direction is clear even for those who have not yet been able to participate in creating responsible businesses. Common sustainable development rules accelerate the market, creating new growth opportunities for companies.
Ecobio’s experts help your company with strategy preparation and sustainability reporting
Pioneering companies find value instead of costs in production that puts less strain on the environment. Your company should start with a materiality assessment. This allows you to draw up a sustainability action plan and focus on the most relevant sustainability factors.
We help your company draw up a strategy that makes sustainability an essential part of the core of the business model and strategy. With our help, your company can find risks and opportunities, take goals to a practical level in good time, and be among the first to report on sustainable operations.
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