CSRD reporting
Prepare yourself optimally for the reporting guideline
As part of CSRD reporting, almost 50,000 European companies will be obliged to disclose their ESG management from 2025. Find out what data will be required and how you can prepare for this now.
What is the CSRD Directive?
The Corporate Sustainability Reporting Directive (CSRD) is an EU directive that defines the sustainability report becomes mandatory. The directive came into force on January 5, 2024 and will apply retroactively from 2025 for the 2024 financial year.
CSRD reporting extends the previous Non-Financial Reporting Directive (NFRD) and introduces the European Sustainability Reporting Standards (ESRS). The ESRS set out the detailed requirements, content and formats of CSRD reporting.
The aim of CSRD reporting is to strengthen the responsibility of European companies for sustainability aspects and to introduce binding reporting standards at EU level for the first time.
Who is affected by CSRD reporting?
Around 15,000 companies in Germany and around 50,000 companies in Europe are affected by CSRD reporting:
Micro-enterprises and non-capital-market-oriented companies do not have to carry out CSRD reporting.
Timeline of CSRD reporting
The CSRD reporting obligation will be introduced gradually. It will be extended from companies that are already required to report (NFRD) to all listed companies:
What innovations does CSRD reporting entail?
CSRD application area
The CSRD extends the reporting obligation to all large companies and listed small and medium-sized enterprises (SMEs).
Double materiality
As part of CSRD reporting, companies must report the impact of their activities on the environment and society as well as the financial impact of ESG factors on the company.
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External audit
Companies' sustainability reporting must be verified by external auditors. The verification standards are set by the EU Commission.
Comparability
The introduction of the European Sustainability Reporting Standards (ESRS) ensures that CSRD reporting is standardized and comparable.
Free e-book: What you need to know to prepare your CSRD report
What are the contents of CSRD reporting?
The European Sustainability Reporting Standards (ESRS) define the content of CSRD reporting. They are divided into the general standards (ESRS 1 and ESRS 2) and the topic-specific standards.
ESRS 1 describes the general requirements for CSRD reporting and defines the application rules for standards as well as the principles and structure of the reports. These include the double materiality analysis, the inclusion of stakeholders and principles for reporting on supply and value chains.
ESRS 2 contains the cross-thematic requirements for CSRD reporting . The standards set out key reporting requirements on governance, sustainability strategy and material risks. It defines minimum standards and is based on the TCFD structure to ensure international compatibility.
The ten topic-specific standards are divided into Social, Environmental and Governance and provide detailed content.
Four steps to CSRD reporting
Double materiality
Materiality analysis identifies relevant sustainability topics.
CO2 footprint
emissions data (Scope 1-3) and set up a reduction pathway.
ESRS data points
Collection, management and analysis of all relevant ESG data.
CSRD report
CSRD report and have it reviewed by external third parties.
Start your CSRD reporting now with Planted
Planted offers a unique combination of internal expert support, external audit by auditors and a software solution.
The most important questions on CSRD reporting
What disclosures does CSRD reporting require?
The obligation to publish a sustainability report requires comprehensive disclosures in the areas of environmental, social and governance (ESG). The aim is for companies to operate more sustainably and to create comparability. The CSRD Directive requires companies to include information in their sustainability report on:
- CO2 emissions,
- Water and resource consumption,
- Working conditions,
- Diversity,
- Human rights,
- social commitment
provide.
Details on corporate governance, remuneration, risk management and dual materiality are also required. CSRD reporting must use standardized frameworks and be transparent, precise and comparable.
How is CSRD reporting linked to the ESRS?
CSRD reporting stipulates that companies must report on their sustainability activities. The European Sustainability Standards (ES RS) provide the detailed content and requirements for these reports. The CSRD reporting specifies the format, while the ESRS define the specific content and standards that must be included in the report. This also includes the double materiality analysis. Together, the standards ensure that the sustainability reports are clear and consistent.
What is the double materiality analysis?
The double materiality analysis is an important part of CSRD reporting. It assesses how sustainability issues affect the company(outside-in perspective) and how the company itself affects the environment and society(inside-out perspective). The materiality analysis helps companies to identify the most important sustainability issues: in relation to the company itself as well as in relation to stakeholders. In order to provide a comprehensive view of risks and opportunities, financial and non-financial aspects are combined. You can find out how you can implement the dual materiality analysis in our blog article.
Who audits the CSRD reporting?
As part of CSRD reporting, the sustainability report must be reviewed by an independent external auditor. This can be an auditing company or a specialized consulting firm, for example. This audit ensures that the reports comply with legal requirements and that the information is accurate and reliable. The external auditor assesses the completeness, accuracy and transparency of the disclosed data.
What is a CSR report?
A CSR report (Corporate Social Responsibility report) is a document that provides information on a company's economic, social and environmental activities.
It includes information on:
- Sustainability initiatives,
- CO2 emissions,
- Energy consumption,
- social projects,
- ethical business practices.
The report aims to create transparency and inform stakeholders about the company's responsibility and contributions to sustainable development. CSRD reporting ensures that these reports are comprehensive and standardized.