🌍 What is CSRD?

The CSRD is a European Union regulation requiring companies to disclose information on their environmental, social and governance (ESG) impacts. It aims to increase transparency for investors, consumers and other stakeholders, by providing reliable information on the sustainability of companies.

📅 When do companies need to comply?

• Large public interest entities listed on an EU regulated market must start reporting from 2025 for financial years starting on or after January 1, 2024.
• Other large EU companies and those listed on an EU regulated market are due to start in 2026.
• SMEs listed on EU regulated markets are due to start in 2027.
• Non-EU companies with significant subsidiaries or branches in the EU must comply from 2029.

🎯 Why is this important for companies?

Compliance with the CSRD will not only ensure compliance with regulations, but also enhance the company’s commitment to sustainability. This can strengthen their brand, attract investment and boost consumer confidence. In the long term, this could also reduce reporting costs by harmonizing the information required.

🚀 How to prepare?

1. Determine whether your company is affected: this includes EU entities and certain non-EU companies with significant activities in the EU.
2. Know your company’s specific reporting schedule based on its size and whether it is listed on a regulated market in the EU.
3. Prepare the necessary disclosures: Companies will have to disclose material information about sustainability impacts, risks and opportunities in line with the European Sustainability Reporting Standards (ESRS).
4. Where to make disclosures: Sustainability information must be disclosed in a dedicated section of the management report and marked numerically according to a digital taxonomy.
5. Obtain independent assurance on reported sustainability information from the first year of disclosure according to CSRD standards.

The implementation of CSRD represents a significant change for many companies. However, by starting preparations early and clearly understanding the requirements, companies can not only comply but also take advantage of this opportunity to demonstrate their commitment to a sustainable future. This is a crucial step towards a greener, more transparent economy, aligning business practices with the broader objectives of the European Green Deal.