The Corporate Sustainability Reporting Directive (CSRD) is set to redefine how businesses report on their environmental, social, and governance (ESG) practices. As Europe takes a bold step forward in its sustainability agenda, the CSRD brings with it both opportunities and responsibilities for companies within and beyond the EU’s borders. Here’s what you need to know about this game-changing directive.
What is the CSRD?
The CSRD replaces the Non-Financial Reporting Directive (NFRD), significantly expanding the scope and depth of sustainability reporting requirements. Its primary aim is to enhance the transparency, reliability, and comparability of corporate sustainability disclosures. With stricter guidelines and a broader range of applicable companies, the CSRD ensures that sustainability information holds the same weight as financial reporting.
Who Does it Affect?
The CSRD applies to large EU companies and non-EU companies with significant operations in the EU. Specifically, it targets:
Large companies meeting at least two of the following criteria: over 250 employees, €40 million in net turnover, or €20 million in total assets.
Listed SMEs (Small and Medium Enterprises), albeit with more lenient requirements.
Non-EU companies generating a net turnover of over €150 million in the EU and having at least one EU subsidiary or branch meeting specific thresholds.
Why it Matters
The CSRD represents a transformative shift in how sustainability is integrated into corporate reporting. By fostering greater accountability and alignment with global sustainability goals, it challenges businesses to elevate their ESG strategies. For forward-thinking companies, the CSRD is not just a regulatory obligation but an opportunity to lead in a rapidly evolving business landscape.
What is Happening in Greece
The CSRD has recently been adopted into Greek Law through Law 5164/2024 (Government Gazette A' 202). This legislation incorporates the provisions of Directive 2022/2464 regarding sustainability reports and the provisions of delegated Directive 2023/2775 into the Greek legal framework. This incorporation underscores Greece’s commitment to aligning with the EU’s sustainability goals and ensuring businesses operating within its jurisdiction comply with these enhanced reporting standards.
How Verimpact Can Help
Verimpact’s experienced team is here to guide your company through the complexities of CSRD reporting. With tailored solutions and deep expertise, we can help you align with the European Sustainability Reporting Standards and ensure your compliance.
We’re also excited to announce a new course on CSRD preparation, designed to equip your team with the knowledge and tools needed for successful reporting. Pre-register now to secure your spot and book a consultation with us to discuss your specific needs. Let’s work together to make sustainability a cornerstone of your business success.
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