Corporate Sustainability Reporting Directive: What you need to know

What Companies Need to Know

The European Union is transforming the landscape of ESG reporting with the Corporate Sustainability Reporting Directive (CSRD). This groundbreaking legislation, approved in November 2022, sets new standards for transparency and accountability in sustainability reporting.

Who Is Affected?

The CSRD casts a wide net, encompassing large companies, listed entities, banks, and insurance firms. To qualify, companies must meet at least two of these criteria:

• Balance sheet total: €25 million
• Net turnover: €50 million
• Average number of employees: 250

When Does It Take Effect?

The rollout is gradual, with the first group of companies already subject to the Non-Financial Reporting Directive (NFRD) beginning to report under the CSRD in 2024. For newly covered companies, the first reporting period is 2025.

What Are the Key Changes?

1. Standardized Indicators: The European Financial Reporting Advisory Group (EFRAG) is developing clear, unified indicators building on existing frameworks like the Global Reporting Initiative (GRI). The EU adopted the first set of standards in July 2023, with sector-specific standards to follow.
2. Mandatory Assurance: Sustainability data must be audited, initially with limited assurance and later with reasonable assurance, elevating its importance to match financial information.
3. Double Materiality: Companies must clearly describe their sustainability strategy, targets, and risk management in reports, which will be assessed during audits.
4. Integrated Reporting: Stand-alone sustainability reports are prohibited; sustainability information must be included in management reports.
5. Single Access Point: The European Single Access Point will provide easy, machine-readable access to financial and non-financial data in XHTML format.
6. Management Responsibility: Legal responsibility for sustainability reports now extends to management, administrative, and supervisory bodies.

Empower Your ESG Reporting with Keboola

At Keboola, we understand the challenges and opportunities of this new era in ESG reporting.

Our platform streamlines data management, enabling you to:

• Seamlessly integrate ESG data from diverse sources
• Automate data transformation and reporting workflows
• Ensure data quality and consistency
• Collaborate effectively across teams and departments
• Deliver audit-ready sustainability reports with confidence

Get closer to the Keboola and PwC Czech Republic partnership that is designed to revolutionize sustainable reporting, combining data expertise with sustainability guidance to meet CSRD, ESRS, and GHG standards. Contact us today to learn more or head to our ESG Solution overview.