What is sustainability reporting?

Sustainability reporting involves transparent communication by companies about their environmental, social and governance (ESG) performance and impact. It serves to provide stakeholders such as investors, customers and the public with insights into a company's sustainability practices and goals.

Who has to prepare a sustainability report from 2024?

From 2024, the Corporate Sustainability Reporting Directive (CSRD) will significantly expand 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. This regulation aims to make the sustainability performance of a broader range of companies transparent.

Who is subject to CSRD?

All companies that are listed on an EU-regulated market (with the exception of micro-enterprises) are affected by the CSRD. 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

  1. the subsidiary (in the EU) is a listed SME or a large company.
  2. The third-country company has generated net sales of more than EUR 150 million at consolidated or group level in two consecutive years.

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. Successful measures for implementing the CSRD can be found here.

What must be included in a sustainability report?

The preparation of a sustainability report requires the systematic collection of relevant data and the application of internationally recognized standards such as the Global Reporting Initiative (GRI). In a sustainability report, companies must provide detailed information about their impact on the environment and society. This includes information on energy consumption, greenhouse gas emissions, water use, employee concerns, human rights and anti-corruption. The report should also include ESG risk mitigation and performance measures, including targets and progress to improve sustainability. Companies should ensure a balanced presentation of their sustainability performance, including both successes and challenges.

What advantages do companies have from sustainability reporting?

By disclosing their sustainability efforts, companies can strengthen the trust of stakeholders and position their brand as responsible. Reporting also supports strategic decision-making and helps to identify risks and opportunities in relation to sustainability.

Sustainability reporting is an essential part of modern corporate management and communication. It promotes transparency, improves relationships with stakeholders and supports companies' commitment to a more sustainable future. In view of increasing regulatory requirements, it is more important than ever for companies to actively engage with sustainability reporting and see it as an opportunity for growth and innovation.

Planted supports companies with CSRD-compliant sustainability reporting

Our team of experts will provide you with comprehensive support in implementing a CSRD-compliant sustainability strategy and CSRD reporting. We look forward to hearing from you.