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Become a partnerReady for the CSRD reporting obligation? VERSO accompanies you step by step.
The Corporate Sustainability Directive (CSRD) will be introduced from 2024. In addition to high regulatory requirements, the CSRD reporting obligation raises many questions: Does it apply to my company? What needs to be done? And how can it be implemented in compliance with the law? You will find answers together with VERSO. Simple, pragmatic and effective.
What is the CSRD?
As one of the three pillars of the European Green Deal, the CSRD reporting obligation obliges European companies to report on sustainability. It replaces the old EU NFRD Directive and the German CSR-RUG Act.
From 2024, the new directive will apply to over 50,000 companies in the EU – 15,000 of them in Germany alone. Under certain conditions, non-EU companies and suppliers of companies subject to CSRD are also affected.
VERSO supports you with specialized software and comprehensive advice to easily create your legally compliant sustainability report and achieve ESG compliance.
What changes does the CSRD reporting obligation bring?
Sustainability reports should create transparency and comparability. The CSRD therefore places numerous new demands on your company. Requirements that can only be met efficiently with the help of a digital tool. With the VERSO ESG Hub, you gain security through a clear data situation and strategically fulfill your CSRD reporting obligations.
Standardized, extended reports
EFRAG has developed the European Sustainability Standards (ESRS) especially for the CSRD. introduced. As a set of CSRD rules, the ESRS prescribe the content and form of your sustainability reports. They incorporate existing standards. More and, above all, more detailed data is required.
External examinations
The CSRD also sets new audit requirements for sustainability reports. On the one hand, an inspection is now carried out by external auditors on the basis of defined inspection standards. Secondly, the depth of the audit is brought closer to the audit quality of financial reports in two steps.
Sustainability in the management report
The Green Deal makes it clear that sustainability can no longer take second place. By designating sustainability information as a mandatory part of the management report, the CSRD reporting obligation places its priority on the same level as financial reporting.
Standardized reporting format
In addition to comparable standards, uniformity and transparency also require uniform reporting formats. Here too, the CSRD draws parallels with financial reporting: in future, sustainability information will be published in the “European Single Electronic Format” (ESEF).
To which companies does the CSRD reporting obligation apply – and from when?
The CSRD came into force in 2023 and will initially apply from 2024 to all companies that are already required to report under the NFRD or CSR-RUG. In 2025, the CSRD reporting obligation will apply to medium-sized/large companies that meet two of the following criteria:
- > 250 employees
- > 25 million € Balance sheet total
- > 50 million € net revenue
From 2027, all listed SMEs, small and non-complex credit institutions and captive (re)insurance companies must also prepare a CSRD report covering the year 2026 – although they can defer their deadline until 2028. Micro-enterprises are exempt if their balance sheet total does not exceed € 450 thousand, net sales do not exceed € 900 thousand or the number of employees does not exceed 10.
In 2028, the CSRD reporting obligation will be extended to non-EU companies that record > €150 million in net sales within the EU and operate a branch or at least one subsidiary in the EU.
Are you also affected by the CSRD?
If you are still unsure as to when your company will have to comply with the CSRD reporting obligation, simply take our free CSRD Readiness Check!
You will receive the evaluation with your results and specific recommendations for action by e-mail within a few minutes.
Find out more about the connections on our blog!
What does “double materiality” mean in the CSRD?
The CSRD reporting obligation also brings with it a new understanding of materiality. More specifically, relevant topics for the CSR report will in future be identified on the basis of“dual materiality“. Companies are therefore obliged to report both on the impact of their own business operations on people and the environment and on the impact of sustainability aspects on the company.
Double materiality thus replaces the old regulation, according to which companies were only required to report if both materiality aspects applied. Our experienced sustainability experts will be happy to support you with the materiality analysis and the entire reporting process.
How do I combine my annual and sustainability reports in a meaningful way?
Annual and sustainability reports are closely linked with the introduction of the CSRD reporting obligation. VERSO not only provides you with audited annual and sustainability reports from a single source, but also combines both into a holistic report that meets all legal requirements. For maximum transparency of your sustainability.
