CSRD Sustainability Reporting

What is CSRD?

The CSRD, also known as the Corporate Sustainability Reporting Directive, is a European directive that requires companies to prepare sustainability reports starting from January 1, 2024. The purpose of CSRD is to encourage companies to be transparent about their impact on social, environmental, and economic issues. The CSRD addresses three core areas: Environment, Social, and Governance (ESG) What companies need to report on these three pillars is determined by the European Sustainability Reporting Standards (ESRS), ensuring uniform reporting across all companies.

What are the main objectives of CSRD sustainability reporting?

The European Commission has formulated three main objectives of sustainability reporting, and it is important to keep these in mind as you get started with the

obligations of the CSRD:

CSRD - Who needs to report?

When do you need to report?

The reporting obligations under the CSRD come into effect from January 1, 2024, with the first reports due in 2025 for the financial year 2024. The requirements are phased in, with different groups of companies starting to report in different years, depending on their size and market position.

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Why do you need to report?

In the Paris Agreement, countries have agreed to limit global warming to below 2 degrees Celsius. A package of measures and policy initiatives, the Green Deal is a collection of rules and ideas aimed at helping the European Union to become climate-neutral by 2050. The CSRD directive comes into play here. This directive aims for companies to take more responsibility for their impact on society and the environment, while also being more transparent.

The CSRD provides you with guidance to harmonize non-financial (also known as extra-financial) reporting, making the information relevant, comparable, reliable, easily accessible, and usable for everyone. At the same time, transparent reporting gives you a basis to measure and report on your achievements and aspirations when it comes to sustainability effectively and consistently. And, where necessary, to adjust accordingly. Last but not least, it provides investors or other business partners with accurate information that they, in turn, can – and increasingly must – use to substantiate their decisions. Finally, it also reduces the risk of greenwashing.

Benefits of ESG reporting

Essentially, ESG reporting enables a company to communicate smoothly and transparently about the social and environmental impacts of its activities and its governance. And that can help to:

Do you want to know how to approach this best? Read our trend report 2024 for more information.

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maartje vanewijk

Annelies Theunissen
People Sustainability Expert

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With the workability cheque you can receive support to identify problems with workable work within your organisation as a one-man-business, SME, large company or social profit organisation with at least 1 employee on the payroll. The intention is to improve labour conditions sustainably. Through the cheques, Flanders finances up to 60% of your project, with a ceiling of €9,000.

The last day to submit your applications is July 31, 2024.
The deadline for performing services is August 31, 2024. Want to know more about the feasibility check?