CSRD – Corporate Sustainability Reporting Directive

Directive (EU) 2022/2464 on corporate sustainability reporting (CSRD)

In Force Effective: 01/01/2024 EU-wide EU Directive

Overview

The Corporate Sustainability Reporting Directive (CSRD) replaces the previous Non-Financial Reporting Directive (NFRD) and significantly expands sustainability reporting requirements. Companies must report according to the European Sustainability Reporting Standards (ESRS).

Who Is Affected?

The CSRD is being introduced in phases:

  • From financial year 2024: Large listed companies (previously under NFRD, >500 employees)
  • From financial year 2025: All large companies (>250 employees and >EUR 40 million turnover or >EUR 20 million balance sheet total)
  • From financial year 2026: Listed SMEs
  • From financial year 2028: Non-EU companies with >EUR 150 million turnover in the EU

Core Obligations

  1. Sustainability report: Comprehensive report according to ESRS as part of the management report
  2. Double materiality: Analysis from both inside-out and outside-in perspectives
  3. External assurance: Sustainability report must be audited by an independent auditor
  4. Digital tagging: Report in XHTML with iXBRL tags for machine-readable analysis
  5. Value chain: Reporting on impacts along the entire value chain

National Transposition

As an EU directive, the CSRD must be transposed into national law:

  • Germany: Transposition through amendments to the HGB, BilRUG, and WPO
  • Austria: Transposition through amendment of the UGB and NaDiVeG
  • Switzerland: No direct transposition obligation, but Art. 964 CO contains comparable reporting requirements

Legal Sources

CSRD: Does it affect you?

Find out if and how this regulation affects your company – we're happy to advise you.

Frequently Asked Questions

Who needs to report under the CSRD?

Large companies with more than 250 employees and EUR 40 million turnover or EUR 20 million balance sheet total. From 2026 also listed SMEs.

What are the ESRS?

The European Sustainability Reporting Standards (ESRS) are the mandatory reporting standards under the CSRD. They cover environmental, social, and governance topics.

When does the reporting obligation start?

For large listed companies (>500 employees) from financial year 2024, for other large companies from 2025, and for listed SMEs from 2026.