Sustainability report
What is a sustainability report?
A sustainability report is a document that communicates the company's environmental, social and economic (ESG) performance and progress in a transparent manner. The aim of the report is to inform investors, customers and all other stakeholders about the company's sustainability practices.
From CSR report to CSRD-compliant sustainability report
Since 2017, large companies with more than 500 employees have been obliged to report on their CSR activities as part of the Non-Financial Reporting Directive (NFRD). With non-financial reporting, companies are required to disclose information on environmental issues, human rights, social aspects and the fight against corruption and bribery, among other things.
From 2024, the Corporate Sustainability Reporting Directive (CSRD) significantly expands the group of companies obliged to report on sustainability. Almost all large companies and all companies of public interest in the EU, regardless of whether they are listed on the stock exchange or not, will then have to submit a detailed sustainability report.
The CSRD requires these companies to report comprehensively on their environmental, social and governance (ESG) performance in order to promote greater transparency and accountability in relation to sustainable business practices. The aim is to make companies' sustainability reports transparent and comparable and to prevent greenwashing. Successful measures for implementing the CSRD can be found here.
Which companies have to prepare a sustainability report?
All companies that are listed on an EU-regulated market are affected by the CSRD. Micro-enterprises are the exception. In addition, all non-capital-market-oriented companies that fulfill two of the following three criteria are affected:
- Balance sheet total: > € 25 million
- Net sales: > € 50 million
- Number of employees: > 250
Non-EU companies with subsidiaries in the EU are required to report if
- the subsidiary (in the EU) is a listed SME or a large company.
- the third-country company generates net sales of more than EUR 150 million in two consecutive years at consolidated or Group level.
What must be included in a sustainability report?
A CSRD report covers the key sustainability aspects of a company. These include:
- CO2 balance: recording and calculation of all greenhouse gas emissions.
- Double materiality analysis: assessment of the company's impact on the environment and society as well as the risks and opportunities arising from sustainability aspects for the company.
- ESRS data: Disclosure on the environment, social issues, employee rights, human rights, corruption and governance.
- Sustainability strategy: Measures to promote sustainability and target achievement.
- Risk and opportunity analysis: Identification of risks and opportunities in connection with sustainable management.
The report shows how the company integrates sustainability and plans future-oriented measures.
What benefits do companies gain from sustainability reporting?
By disclosing their sustainability efforts, companies not only act in accordance with the law, but also benefit from other advantages:
- Stakeholder trust is strengthened
- Responsible positioning of the brand
- Advantages in employer branding / on the employer market
- Retention and motivation of your own employees
- Identification of risks and opportunities
The sustainability report is an essential component of modern corporate management and communication. In view of the increasing political guidelines, it is more important than ever for companies to actively address their commitment to sustainability and see this as an opportunity for growth and innovation.
CSRD-compliant at the touch of a button: How software transforms the sustainability report
With software solutions such as Planted's ESG management platform, companies can create their CSRD report automatically. Thecarbon footprint is calculated in a TÜV-certified manner, the double materiality analysis is carried out with AI support and all relevant ESRS data points are recorded. This creates the complete CSRD report at the touch of a button. Our team of experts is on hand to advise you throughout the entire process. Arrange a free free consultation appointment.