Subject(s):
CSRD

The European Council gives final approval to the CSRD. What does this mean for you?

Published on:
by:
Claudia Terpstra (Specialist Digital Reporting)

In November 2022, the European Council gave its final approval to the corporate sustainability reporting directive (CSRD). This guideline specifies which companies should report on sustainability and how they should do so. It is important to know that companies that do not have to publish a sustainability report yet will have to do so from 2025. Will the CSRD soon also apply to you? And if so, how do you prepare for it? We will tell you all about it in this article.

Wat is the CSRD exactly?

CSRD stands for Corporate Sustainability Reporting Directive. This directive aims to make the transition to a sustainable economy easier. How that works?

Financiers and investors can use the sustainability reports to determine whether their investment in a company contributes to a sustainable economy. Do you show that you are doing well in the field of sustainability? Then it will be easier to find investors for your company.

And because organisations are obliged to share information about their sustainability with the public, they will feel more pressure to make their way of working more sustainable.

Is the CSRD applicable to you?

The CSRD applies to you if your organisation falls under one of these groups:

  1. Companies that already fall under the NFI directive (the non-financial information directive). This group of companies must report according to the CSRD from financial year 2024.
  2. Large SMEs that are not currently covered by the NFI. You are considered a large SME if you meet at least 2 of the following criteria:
    - More than 250 employees.
    - More than 40 million euros turnover per year.
    - More than 20 million euros on the balance sheet.
    This group must report from fiscal year 2025 in accordance with the CSRD guidelines.
  3. Listed SMEs. The guideline applies to this group from the 2026 financial year.

How can you prepare for this?

The date when you must report according to the new guideline still seems far away, but time goes by faster than you think! And that's why it is good to prepare for this in advance. This is what you can do right now:

  • Think about what your organisation is doing in terms of sustainability. Look at things like: how is the business space heated? And how is waste processing arranged? Which parts of your business have the most impact on the environment and how do you approach this sustainably?
  • Investigate how your suppliers deal with sustainability. You also have to report on this. So try to find out the raw materials for your products. And what about the working conditions at your suppliers?
  • Look at how other organisations are doing it. Sustainability reports are public documents, so they are easy to find online. This will give you an idea of what a sustainability report looks like.
  • Familiarise yourself with the CSRD rules. This way you know exactly what is expected of you and what your website must meet. No time to do extensive research? Then the following suggestion will help you further:

Sign up for our Reporting newsletter. In this newsletter we keep you informed of all developments concerning the CSRD and we help you on your way with your sustainability report. You can register via the form in the footer of our website.

Are you sure you will do it right later? Then start now!

The best way to prepare is to get started with the sustainability report right away. This way you experience what it is like to make such a report and what you need for this. Chances are you have to collect a lot of information from different departments. If you know who has to deliver what, you can make a plan for next year based on your experience. The report does not have to comply with the CSRD rules just yet, so you cannot make any mistakes. And by starting now you are already laying a good foundation for your sustainability report.