The CSRD (Corporate Sustainability Reporting Directive) is a European directive that fundamentally redefines companies' non-financial reporting requirements. Coming into force in January 2024, it imposes increased transparency requirements on environmental, social, and governance (ESG) impacts. The goal? To make this information as reliable and comparable as financial data.
Why was the CSRD created?
Regarding the climate emergency and growing investor expectations, the CSRD aims to:
Increase transparency on companies' sustainable performance
Harmonize ESG data at the European level
Fight greenwashing
Guide investments towards more sustainable models
Who is affected and when?
The CSRD will gradually apply to more than 50,000 companies, with deadlines adjusted by the Omnibus Directive (February 2025), which grants more time to certain categories:
Wave 1: Large companies already covered by the NFRD 2025 (based on 2024 data)
Wave 2: Large companies not covered by the NFRD, listed SMEs, and subsidiaries of non-European companies are not subject to the CSRD before 2028
A voluntary simplified framework (VSME) was also created for unlisted SMEs, with no audit or double materiality analysis required.
What must be published?
The core of the reporting is based on the ESRS (European Sustainability Reporting Standards), which defines the information to be disclosed based on three pillars:
Environment: climate, pollution, biodiversity, circular economy, etc.
Social: human rights, working conditions, equality, value chain, etc.
Governance: ethics, anti-corruption, sustainable strategy, etc.
In total, up to 1,300 data points, mostly qualitative, are required based on dual materiality:
Impact of the company on society and the environment
Impact of sustainability on the company's financial performance
The data must be verifiable, relevant, comparable, and accessible in digital format (XHTML) via a common European database (ESAP).
What are the key steps in the CSRD process?
Double materiality analysis (DMA): identify major ESG issues for the company and its stakeholders
Data collection: structure ESG data across the entire value chain
Gap analysis: identify missing data for perfect compliance
Roadmap: establish and prioritize initiatives to be implemented to address the company's current shortcomings
Publication: integrate data into the annual management report
Audit: mandatory external audit (limited, then reasonable assurance)
In summary:
The CSRD marks a shift towards a more responsible economy, where sustainability is becoming as central a management criterion as financial performance. Although the deadlines have been partially adjusted via Omnibus, anticipation remains key: collecting the right data, structuring processes, and mobilizing teams. Companies that prepare for it now will gain a lasting competitive advantage.