⭐ News

Chemical Management Report 2024

Intersolia logo

What does CSRD mean for companies in the EU?

CSRD

The CSRD (Corporate Sustainability Reporting Directive) is an EU directive aimed at ensuring that companies report on how their social and environmental activities impact society and the environment. This directive replaces the previous reporting directive – the Non-Financial Reporting Directive (NFRD) from 2014. The CSRD came into effect on January 5, 2023, with a gradual implementation of the rules starting from the financial year 2024.

Table of Contents

The purpose of sustainability reporting

The purpose of sustainability reporting according to the CSRD is to contribute to achieving the goals of the EU’s Green Deal and to raise the standard of companies’ sustainability information to the same level as financial reporting. Companies covered by the directive are required to report in accordance with new detailed requirements set out in a set of standards known as ESRS (European Sustainability Reporting Standards), which have recently been published in a delegated regulation (2023/2772) complementing the CSRD. The standards are divided into E (Environment), S (Social), and G (Governance).

Compared to the NFRD, the CSRD significantly tightens the requirements for data quality and transparency. Additionally, there will be requirements for an auditor’s assurance of the sustainability part of the annual report on equal terms with the financial part. Therefore, the annual report should contribute to understanding financial risks related to, for example, changes in the work environment, climate change, and environmental pollution throughout the value chain.

Which companies are required to report under CSRD and when?

The requirements of the directive will be implemented gradually and will initially apply to large companies within the EU. However, small and medium-sized enterprises should be aware of what the directive entails and what they need to prepare for. When the implementation period is over, a large number of listed companies within the EU (excluding micro-enterprises) will be subject to reporting requirements.

The reporting for small and medium-sized enterprises is less extensive, as they have the option to defer some requirements from the mentioned standards.
Furthermore, other covered companies include those outside the EU that have branches or subsidiaries within the EU, as well as certain insurance companies and other types of businesses.

When should the report be submitted?

In the table below, you will find the directive’s criteria for designating covered companies and the first reporting year. There is a requirement for sustainability reporting when 2 out of 3 criteria, as minimum criteria, are met:

  

Two out of three criteria must be met

First reporting year

Is the company of public interest?*

Average number of employees at the date of the balance sheet:

Balance sheet

Net turnover

2024

Yes

More than 500

Over 25 million euros

Over 50 million euros

2025

No

More than 250

Over 25 million euros

Over 50 million euros

2026

Yes

More than 50

Over 5 million euros

Over 10 million euros

*By public interest, companies listed on the stock exchange, banks, credit institutions, or insurance companies are meant.

In summary:

2024 – Large European companies of public interest.

2025 – Large European companies.

2026 – Small and medium-sized enterprises of public interest.

Do you have any questions?

Our EHS consultants have extensive experience in working with chemical management and are here to help you increase safety and comply with legal requirements. We also offer training in environmental and workplace legislation, REACH, chemical management, and risk assessment.

Do you have any questions? Don’t hesitate, contact us by emailing us directly at consulting@intersolia.com 

What does CSRD mean for companies in the EU?
Share