Corporate Sustainability Reporting (CSRD)
Our Service Areas
Corporate Sustainability & ESG
Enhancing Transparency and Accountability in EU Business Practices
The Corporate Sustainability Reporting Directive (CSRD) was officially enacted on 5th January 2023, representing a significant milestone in the European Union’s (EU) efforts to promote sustainable business practices. It is one of the cornerstones of the European Green Deal and is integrated together with other EU initiatives, such as the EU Taxonomy and the Sustainable Finance Disclosure Regulation. A key element of the CSRD is the European Sustainability Reporting Standards (ESRS), which were adopted by the European Commission through a delegated Act on July 2023.
As one of the primary instruments facilitating the evaluation of sustainability performance by organizations, consumers, and other relevant stakeholders, the CSRD demonstrates the EU’s commitment to improving the quality, comparability, and transparency of sustainability reporting within its jurisdiction. The directive highlights the increasing prominence of Environmental, Social, and Governance (ESG) factors in business decision-making processes and emphasizes the necessity for enhanced accountability in corporate sustainability practices.
Objectives
The CSRD supersedes the Non-Financial Reporting Directive (NFRD) and addresses its limitations by expanding the range of companies mandated to report their sustainability performance. The directive applies to all large and listed companies, requiring them to disclose information on their social and environmental impact, governance issues, and sustainability practices.
The implementation of CSRD is designed to facilitate greater alignment between companies’ operations and the broader objectives of the EU Green Deal, contributing to a more sustainable, inclusive, and environmentally responsible economic landscape.
Key Requirements
The key requirements for companies under the CSRD are:
- adherence to the ESRS,
- the assessment of double materiality,
- third party assurance and
- digital availability.
In their reporting, companies must adhere to the detailed standards set in the European Sustainability Reporting Standards. The double materiality perspective of the CSRD means that companies need to report on how the sustainability issues and topics set in the ESRS affect them financially (financial materiality) and how their operations impact the society and the environment (impact materiality). Third party assurance needs to be obtained from independent and verified auditors to enhance the credibility of the data.
Applicability and Timeline
The Corporate Sustainability Reporting Directive (CSRD) is being implemented in phases to ensure that companies have adequate time to prepare for the new reporting requirements. A breakdown of the phases is as follows:
- First Phase (January, 2024)
- Companies with over 500 employees that were already subject to the NFRD.
- Reporting requirement starting with the fiscal year 2024 with reports to be published in 2025.
- Second Phase (January, 2025)
- Large companies not previously covered under the NFRD: more than 250 employees, turnover exceeding €40 million or total assets over €20 million.
- Reporting requirement starting with the fiscal year 2024, with their first CSRD compliant reports out in 2026.
- Third Phase (January, 2026)
- Listed SMEs and other companies meeting specific criteria.
- Reporting requirement starting with the fiscal year 2026 with reports published in 2027.
- Fourth Phase (January, 2028)
- All remaining companies within the scope of the CSRD.
- Reporting requirement starting with the fiscal year 2028 with reports due in 2029.
Comprehensive Support
To successfully navigate the complexities of the CSRD, businesses benefit from professional guidance and support. Our goal is to bridge the gap between reporting and management practices and the practical application of the company’s sustainability goals. Leveraging our international network, we offer a range of services to help organizations comply with the directive’s requirements, optimize their sustainability reporting practices and lower their impact.
With the help of our partners and our wide network in Finland and in Northern Europe, we are able to provide a wide range of services covering almost all aspects of the CSRD reporting process.
Areas We Cover
- ESG reporting from materiality assessment to design, editing, translations and public communication
- Materiality Assessment using our simplified materiality assessment matrix and tool
- Gap analyses
- Training and capacity-building programs
- Ongoing ESG compliance support
- CSRD auditing and due diligence
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