What is the CSRD?
Corporate Sustainability Reporting Directive (CSRD)
The Corporate Sustainability Reporting Directive (CSRD), which came into force in January 2023, is a European Union directive that replaces the previously applicable Non-Financial Reporting Directive (NFRD). The CSRD aims to make sustainability reporting in the European Union more transparent, consistent and comparable.
Report format and content
Under the CSRD, companies must integrate their sustainability information into the management report, which eliminates the need to separate financial and sustainability reports. Reporting is carried out in accordance with the binding European Sustainability Reporting Standards (ESRS) and in a machine-readable ESEF format (European Single Electronic Format). In addition, an independent audit of the report by auditors is required.
The CSRD includes environmental, social and governance factors. Companies must disclose strategic sustainability goals, progress and the impact of their business activities. The principle of double materiality applies: on the one hand, the company’s impact on the environment and society (inside-out) and, on the other, the financial risks arising from sustainability factors (outside-in).
In the area of the environment, the focus is on the six environmental objectives of the EU taxonomy. Information on social issues relates primarily to equal opportunities, working conditions and compliance with internationally applicable frameworks. Governance aspects include the role of management bodies in relation to sustainability issues, corporate ethics, prevention of corruption, political engagement and lobbying, partnerships and internal risk management.
NEW: The DFGE ESG Handbook 2025
A guideline along the ESRS
Our brand new ESG Handbook 2025 contains an introduction to the CSRD and ESRS standards as well as fact sheets with definitions and recommended actions to help you answer your questions about the rapidly evolving ESG landscape and get an overview of the ESRS standards.
The CSRD
Scope of application
The CSRD significantly expands the group of companies subject to reporting requirements. While around 11,700 companies were covered by the NFRD, the CSRD affects around 50,000 companies across the EU, including around 15,000 in Germany alone
From January 1, 2024 with a reporting period until 2025:
Large listed companies that are already subject to the Non-Financial Reporting Directive (NFRD). The following criteria apply here:
- > 500 employees and
- > € 50 million turnover or > € 25 million balance sheet total
From January 1, 2025 with a reporting period until 2026:
Large companies that are not currently subject to the Non-Financial Reporting Directive. Two of the three adjacent criteria for large companies must be met:
- > 250 employees (regardless of capital market orientation)
- > € 50 million turnover
- > € 25 million balance sheet total
From January 1, 2026 with a reporting period until 2027:
For listed SMEs, small and non-complex credit institutions and captive insurance companies (excluding micro-enterprises). Two of the following three criteria must be met:
- > 10 employees
- > 900,000 € turnover
- > 450,000 € balance sheet total
What is the situation with subsidiaries and branches?
European companies that report at group level in accordance with the CSRD sustainability reporting requirement thereby release their subsidiaries from their own reporting obligation. To be exempt, the subsidiary only has to refer to the group report by link in its management report and state the name and registered office of the parent company. However, capital market-oriented subsidiaries are not excluded from the reporting obligation.
The CSRD also includes companies that are not headquartered in the EU; more comprehensive rules apply to these non-European companies.
Starting from January 1, 2028 with a reporting deadline until 2029
Non-European companies with a net turnover of > €150 million in the EU must prepare a CSRD-compliant sustainability report at the consolidated level of the ultimate third country entity if:
At least one subsidiary in the EU fulfills the following criteria:
- Large companies. Two of the following three criteria must be met:
> 250 employees
> € 50 million turnover or
> € 25 million balance sheet total - Listed companies. Two of the following three criteria must be met:
> 10 employees
> € 900,000 turnover or
> € 450,000 balance sheet total
Or if at least one branch office in the EU fulfills the following criteria:
- > € 40 million net turnover
Is your company required to report?
Contact us for an initial meeting to tackle the CSRD challenge in a targeted manner
+49 8192 99 7 33-20
Services
Our services at a glance
The starting point of a CSRD project is the double materiality analysis, which identifies relevant sustainability topics and assesses their impact, opportunities and risks
Based on the results of the analysis, the implementation plan follows, in which relevant data points from the ESRS that must be disclosed in the report are determined and the effort and costs of CSRD reporting – including data collection – are estimated.
The third step is dedicated to the concrete implementation of CSRD reporting obligations. Here we support companies in interpreting and implementing the ESRS requirements as required. We help with the collection, collation and review of the necessary data and take on the validation, fine-tuning or even the creation of the report texts. If required, we also support companies with the introduction of new governance structures and the development of suitable policies, measures and targets in the area of sustainability. This can also include specific modules such as the Corporate Carbon Footprint (CCF), Climate Transition Plan (CTP), risk and opportunity analyses, the EU taxonomy or strategies for biodiversity and the circular economy, for example.
We work closely with our partner Daato for software-supported implementation.
The high requirements of CSRD are a particular challenge for SMEs – we help you to find a starting point from the jungle of requirements and provide you with individual and modular advice. We will accompany you with your existing resources to your first CSRD-compliant report and work with you to identify potential for improvement and gaps in order to continuously improve in subsequent reporting years. Our aim is to reduce the complexity for SMEs and to work as efficiently as possible on the most important levers for the first CSRD report.
Our team will take care of the preparation and critical support of the CSRD reporting process according to your company’s ambition level and available resources. We will reduce the complexity of the reporting requirements for you and provide you with individual and personal support. Fixed contact persons, process assurance by auditors, software-supported project implementation and detailed process documentation are a matter of course for us.
Your Advantages
Why you should contact DFGE for CSRD
- Everything from a single source – as part of our holistic approach, we can accompany you on the entire CSRD journey and offer module components such as Corporate Carbon Footprint (CCF), Climate Transition Plan (CTP), risk and opportunity analyses, EU taxonomy or strategies, e.g. on biodiversity or the circular economy.
- Focus on SMEs: For over 25 years, we have been supporting SMEs in the implementation of sustainability projects and reporting requirements in accordance with internationally recognized standards such as TCFD, GRI or UNGC.
- Holistic customer support through our Sustainability Intelligence approach
- We see ourselves as a coach, consultant and service provider – to minimize resources and effort on your side
- We are not an advertising agency that makes your data prettier. Our roots are in research and that’s how we still work today.
