Which companies will have to report under the Corporate Sustainability Reporting Directive (CSRD)?

The first phase of companies who need to report on the Corporate Sustainability Reporting Directive (CSRD) will be required to use their 2024 data. That means getting ready now. Not only will you need to put a reporting plan in place, but you’ll also likely need to bring in new tools and resources to do so. So 2023 will be a crucial year for building those structures into your supply chain.

With the initial deadline coming up so soon, it’s important to know if your company will be one of those impacted by the directive. We’ve put together a brief overview of who needs to start reporting and when that will begin.

Who needs to report under CSRD?

The companies that CSRD applies to will be determined by whether or not they meet two of the following criteria:

• Over 250 employees
• More than €40 million in annual revenue
• More than €20 million in total assets

OR are one of the following:

• Publicly-listed equities and have more than 10 employees or €20 million revenue
• International and non-EU companies with more than €150 million annual revenue within the EU and which have at least one subsidiary or branch in the EU exceeding certain thresholds

The first round of reporting (on 2024 data) will see those businesses which already report under the Non-Financial Reporting Directive (NFRD) impacted. This is because CSRD will absorb and replace NFRD.

With these requirements, CSRD is estimated to impact 49,000 companies in the EU. This number doesn’t reflect the number of organisations that are international or non-EU companies. We expect the true number of companies impacted will be much higher.

EU regulations are still to be finalised, but failing to report could involve naming companies that breach the legislation (causing reputational harm), direct orders to the company requiring a change of conduct and, finally, regulatory fines.

When will you need to report?

Start getting ready now so your supply chain comes out on top. Use The ultimate guide to Scope 3 emissions reporting workbook to make sure you have everything you need to be CSRD ready.