What does CSRD stand for? 

Last year, the Council and the European Parliament reached a provisional political agreement on companies' directives for sustainability reporting. These rules are outlined in the Corporate Sustainability Reporting Directive (CSRD). They establish the requirements companies must adhere to when reporting on their sustainability performance. The aim is to promote transparency and consistency.

With this new regulation, investors and other stakeholders will better understand where they stand since it compels companies to be open about their current and future performance. Unlike in current financial reports, they are now also required to express concrete sustainability objectives.

Which companies fall under the CSRD?

The CSRD will apply to all large companies that meet two of the following criteria:

• Annual turnover exceeding €40 million
• Balance sheet total of more than €20 million
• More than 250 employees (on average over a year)

For SMEs listed on the stock exchange, the CSRD will take effect on 1 January 2026.

When do the CSRD guidelines apply?

The implementation of the directive will occur in four phases.

1. Companies already subject to the Non-Financial Reporting Directive (NFRD), generally large public-interest entities with over 500 employees, must begin reporting under CSRD for the fiscal year starting January 1, 2024, with reports due in 2025​.
2. By January 1, 2025, large companies not previously covered by NFRD, meeting at least two of the criteria must start reporting, with reports due in 2026.​
3. Listed small and medium-sized enterprises (SMEs), must comply from January 1, 2026, with reports due in 2027. This phase also includes small non-complex financial institutions and insurance firms​.
4. Non-EU companies with substantial operations in the EU (i.e., €150M turnover in the EU) will need to start reporting from January 1, 2028, with reports due in 2029.

Why should you take action now?

The CSRD promotes transparency, allowing investors, consumers, and stakeholders to make informed choices. To ensure a favorable outcome in the future, we advise you to reconsider your company's performance now.

Companies are required to explain their societal impact in any way it manifests. They must also clarify how external sustainability factors, such as climate change or human rights issues, affect their activities.

How you can prepare for sustainability reporting with Healthy Workers

Buildings are significant contributors to pollution, presenting ample opportunities for improvement. By assessing the condition of your building, you can identify areas for potential savings.

Quickly and efficiently identify cost-saving opportunities with our building analytics & ESG performance software. This way, you avoid financial losses and achieve better results in your CSRD reporting. It benefits people and the environment while also attracting more investors.

If you want to learn more about savings opportunities of your buildings or total portfolio, reach out or book a free demo and we'll show you how Healthy Workers can support.