Extended reporting obligation for companies

We would like to inform you about a significant innovation in the area of corporate reporting: the introduction of the Corporate Sustainability Reporting Directive (CSRD). This European Union (EU) directive aims to significantly increase the transparency and accountability of companies with regard to sustainability. We have summarized the most important information for you below.

What is the CSRD?

The Corporate Sustainability Reporting Directive (CSRD) is a further development of the previous Non-Financial Reporting Directive (NFRD). It obliges companies to report on their sustainability performance in a more comprehensive and standardized manner. This applies in particular to environmental, social and governance (ESG) issues, including CO2 emissions, energy consumption, employee rights and supply chain management.

Who is affected?

The CSRD considerably expands the group of companies subject to reporting requirements. It applies to:

• All large companies in the EU
• Listed companies, regardless of their size
• Small and medium-sized enterprises (SMEs) listed on regulated markets (with some transitional periods)

What are the main features?

1. Expanded scope: More companies are now required to produce sustainability reports.
2. More detailed reporting: More comprehensive and standardized ESG information is required.
3. Assurance and certification: Reports must be verified by independent assurance bodies.
4. Harmonization of standards: Uniform reporting standards in the EU improve the comparability of data.
5. Digitization: Reports must be provided in digital format.

Implementation schedule

The CSRD will be implemented gradually:

• From January 1, 2024, large and listed companies must comply with the new requirements and submit their reports in 2025.
• From January 1, 2025, other large companies will follow and their reports must be published in 2026. Companies with more than 250 employees or Annual turnover > 50 million or balance sheet total > 43 million €.
• Small listed companies have until January 1, 2026, with initial reporting in 2027, although they can make use of a voluntary transition period until 2028.

Why is the CSRD important?

The CSRD ensures that investors, consumers and other stakeholders can make better-informed decisions. It supports the EU in achieving its climate protection and sustainability goals and promotes more responsible corporate governance.

We hope this information gives you a clear overview of the changes to come. If you have any further questions, please do not hesitate to contact us.