The new non-financial reporting obligation (CSRD) – A comprehensive overview
Companies in the EU now have a greater responsibility for social, environmental and human rights aspects. The new non-financial reporting obligation, or the Corporate Sustainability Reporting Directive (CSRD), requires large companies and groups to report information on their impact on society and the environment. This is intended to create transparency and comparability for investors and other interest groups.
What is the new non-financial reporting obligation (CSRD)?
The CSRD is part of EU Directive 2014/95/EU and requires companies with more than 250 employees that have their headquarters in an EU member state to report information on their impact on society and the environment. The reporting obligation covers topics such as the environment, employee rights, anti-corruption and human rights.
Why is the non-financial reporting obligation CSRD important?
The CSRD contributes to greater transparency and responsibility on the part of companies. Investors and other stakeholders can now better understand and assess the impact of companies on society and the environment. This can help companies improve their practices and take greater responsibility for social and environmental issues.
What are the biggest changes?
| Current directive (NFRD) | New directive (CSRD) | |
| Which companies are affected? | Capital market-oriented companies (>500 employees) with public interest (listed, banks, insurance companies) | Companies that meet two of the following three criteria:> 250 employees> € 50 million turnover> € 20 million balance sheet total Listed companies |
| How many companies are affected? | Approx. 11,000 in the EU | Approx. 50,000 in the EU |
| What is the scope of the report? | Companies should report on: – Environmental protection – Social responsibility and treatment of employees – Anti-corruption and bribery – Diversity | Information on the six environmental objectives of the European Union, which also define the structure for the EU Taxonomy. – Information on social aspects – Information on governance aspects The standard is currently undergoing final development. |
| Where should the report be published? | In the annual report (also possible as a separate sustainability report) | Exclusively in the management report |
| From when? | For the first time for FY 2017 | For the first time for FY 2024 |
What are the requirements of the non-financial reporting obligation (CSRD)?
Companies must provide information on the following topics:
- Environmental impact, including energy efficiency, waste management and climate change
- Employee rights and working conditions
- Human rights and non-discriminatory practices
- Anti-corruption and integrity
- Social impact, including local communities and supply chains.
Are you subject to the CSRD reporting obligation for the first time?
Many SMEs are affected by a sustainability reporting obligation for the first time and are unsure of what to expect. Simply make an appointment with us and we will show you how we can support you.
