CSRD - Ecocharting

CORPORATE SUSTAINABILITY REPORTING DIRECTIVE

Transparent, comparable, and reliable about sustainability.

Imagine...

The arrival of the CSRD means tremendously much for sustainability.

Imagine what would happen if all companies in Europe were completely transparent about their efforts in the field of sustainability.

Currently, only a fraction of the companies report on this, and almost every report has its own unique method for calculating and disclosing data.

Improved insight thanks to the CSRD

A lack of standardisation in sustainability reporting is not only bad for the world, but also for businesses themselves.

The changes in the world are increasingly having repercussions for organisations, often too little attention is paid to this. If sustainability is already a point of attention, often this consists of a tunnel vision on a limited number of subjects monitored with makeshift solutions.

CORPORATE SUSTAINABILITY REPORTING DIRECTIVE

Get acquainted with the CSRD.

The Corporate Sustainability Reporting Directive is a new reporting legislation introduced by the European Union, aimed at ensuring that large companies report on their sustainability efforts in a transparent, comparable, and responsible manner.

Starting in 2024, accountants will annually verify the accuracy and completeness of these reports, marking a significant step towards sustainable change.

Roadmap CSRD

Our most up-to-date whitepaper. Discover a complete overview of the regulations and the steps to be taken:

Check how the CSRD applies to your business.

Reporting Criteria

Businesses that meet at least two of the following criteria will report under CSRD.

Company Size

Businesses above 250 employees meet the reporting criteria. Note: this includes self-employed workers.

Yearly revenue

Turnover which exceeds €50 million meets the CSRD criteria.

Balance Total

Firms with a balance total of more than €25 million meet the CSRD criteria.

Timeline

2023

Start preparation by performing the double materiality assessment. Develop a materiality matrix.

2024

Collect data and set up policies and actions for material topics.

2025

Reporting on fiscal year 2024. This applies to firms currently under the NFRD regulations.

Start in time

It still seems a long way off: many organizations will have to start reporting on fiscal year 2025. However, a lot is involved in preparing the report properly. The CSRD consists of hundreds of pages of guidelines. Finding out which elements are relevant to your organization and developing the data gathering therefore takes quite some time.

2026

Reporting on fiscal year 2025. This applies also to firms not currently under NFRD regulations.

A new reporting standard: why?

The Corporate Sustainability Reporting Directive (CSRD) has a number of important goals.

Most importantly, the aim of the new regulations is to make sure that sustainability reporting will become more transparent, trustworthy and allows for easy comparison between companies alike. To make sure that the information that is disclosed is relevant and valid, accountants will play a key role.

Topics that must be included in the CSRD Report, based on materiality.

Datapoints that are connected to the themes and topics related to CSRD.

1100

More than fifty thousand firms across Europe fall under CSRD regulations.

Not only environmental

As part of the CSRD, European Sustainability Reporting Standards (ESRS) have been developed on the three topics Environment, Social and Governance.

Environment

The environmental theme comprises 5 subtopics. This includes pollution, biodiversity and the circular economy, and more. Some elements are required, while other topics are to be disclosed on based on the outcomes of the double materiality assessment.

Social

In this domain, organizations report on their own workforce, as well as communities in the areas they are active. Also, workers in the value chain and consumers and end-users must be taken into account. Whether all issues are to be reported on, depends on the materiality of topics.

Governance

This theme is about business conduct and whether issues like corruption or bribery are of importance to the organization. Moreover, the theme includes some specific issues like lobbying and late payment with regards to partners, especially for SME suppliers.