CSRD Timeline – Stay ahead of reporting schedule
CSRD (Corporate Sustainability Reporting Directive) came into force 1.1.2023, and became applicable 1.1.2024. CSRD will strengthen and standardize the rules for how companies in EU are required to disclose information on their impact on people and the planet.
Starting from 2024 to 2028 CSRD is phased into action, the first companies will have to apply the new rules for the first time in the 2024 financial year, for reports published in 2025.
CSRD in 2025
From FY 2025, large listed and unlisted copmanies and consolidated groups that meet at least to of the following criteria: more than 250 employees, balance sheet of 25 million euros, or more than 50 million euros in turnover.
To prepare for reporting in 2025:
- Prepare reporting systems. Ensure you have clear Key Performance Indicators (KPI’s), goals and a plan in place.
- Gather data trough out the year for 2025 reporting and review it with your accountant. Note, if your company is subjected to NFRD you are required to report on 2024 data in 2025.
In FY 2025 review your reporting activities and systems to establish or improve for 2026 reporting. If you are not eligible to report in 2025 under CSRD, note that you will have to report for the companies that are in the scope because they need information about their supply chain’s impacts.
CSRD impact on companies from 2024 to 2028
The CSRD applies to companies in the following order (according to Article 5 in CSRD):
- from financial year (FY) 2024, listed companies and consolidated groups with more than 500 employees (i.e. companies already covered by the NFRD);
- from FY 2025, large listed and unlisted companies and consolidated groups that meet at least two of the following criteria: more than 250 employees, balance sheet of 25 million euros, or more than 50 million euros in turnover;
- from FY 2026, listed small and medium sized enterprises (SME) except micro-companies;
- From FY 2028, listed large subsidiary third-country companies, and listed SME subsidiary third-country companies, with turnover over 150 million euros for the last two consecutive years. Third-country companies with non-subsidiary branches that have generated more than 40 million euro the previous year also need to report according to this timeline. Reports are required on a group level, or individual level for branches without an applicable group level.
CSRD data collection and reporting
Under the CSRD companies are required to assess their sustainability matters on the double materiality principle. Conducting a double materiality assessment means that companies assess both the impact of a company on society and the environment (impact materiality) and the impact society and environment has on the company (financial materiality).
When companies decide on which sustainability data they need to collect and on what sustainability topics they need to report on in their annual reports, this decision is based on that company’s most important material topics.
Ecobio Manager CSRD solution helps you with data collection under CSRD requirements. Bid farewell to manual data entry. Our solution seamlessly integrates assessment results into your data collection system, saving you valuable time and effort. Read more here.
