The Corporate Sustainability Reporting Directive (CSRD) is the new European regulation that will change how companies report their sustainability impact, replacing the current Non-Financial Reporting Directive (NFRD). With the CSRD, the European Union aims to raise standards of transparency and accountability, requiring companies to conduct a detailed analysis of their environmental, social, and governance (ESG) impact. In this article, we explain what this directive means and how you can prepare your company to comply with it.

What is the CSRD and who does it affect?

The CSRD, which will come into effect starting from the 2025 reporting year, will affect a larger number of companies, including SMEs with more than 250 employees or that meet certain financial criteria (€40 million in turnover or more than €20 million in assets). With this expansion, the regulation aims for companies of all sizes and sectors to be transparent about their impact on the environment and society.

Key changes introduced by the CSRD

The CSRD introduces much more specific and detailed requirements than those established by the NFRD. Some of the key changes are:

• Increased Scope: The CSRD affects many more companies, including SMEs and listed companies, regardless of size.
• Detailed ESG Reporting: Companies will be required to report comprehensively on their impact in areas such as climate change, biodiversity, human rights, and diversity.
• Uniform Reporting Standards: The CSRD introduces the European Sustainability Reporting Standards (ESRS), developed by the European Financial Reporting Advisory Group (EFRAG), ensuring a uniform format that allows data comparison between EU companies.
• Mandatory External Verification: Unlike the NFRD the CSRD requires data to be audited by an external entity, ensuring that the information is accurate and meets the new transparency standards.
• Integration of Financial and Non-Financial Information: The CSRD promotes an integrated vision where sustainability and finances go hand in hand, making ESG impact a core part of business strategy.

Benefits of adapting to the CSRD Now

Complying with the CSRD requires time and preparation. Companies that adapt now can reap several benefits:

• Competitive Advantage: Complying with the CSRD early positions the company better, gaining the trust of investors, customers, and the community.
• Smoother Transition: Preparing the necessary data now will allow a smoother transition to the CSRD, avoiding complications when the regulation comes into effect in 2026.
• Improved Decision Making: The CSRD requires evaluating ESG impact in an integrated manner, providing useful data for strategic decisions that strengthen both sustainability and performance.

The CSRD Report as an opportunity for real sustainability

The CSRD is not just a regulation; it is an opportunity for companies to demonstrate their commitment to sustainability in an authentic and transparent way. Adapting to these new requirements now will allow companies to gain the trust of the community and stand out in an increasingly sustainability-oriented market. At We Are Co2nscious, we are here to support you every step of the way, helping you build reports and strategies that reflect your company’s impact and values honestly and sustainably.

How We Are Co2nscious helps you comply with the CSRD

Adapting to the CSRD can seem challenging, but with expert support, it becomes much easier. At We Are Co2nscious, we help companies comply with this new regulation and maximize its potential:

• Sustainability assessment and diagnosis: We conduct an initial analysis to identify key impact areas and design a sustainability strategy aligned with the CSRD.
• ESG report creation: We create structured and detailed sustainability reports, aligned with the ESRS and ready for auditing.
• Data preparation for external verification: We help you collect and organize ESG data, ensuring it meets the accuracy and transparency standards required by the CSRD.

Not sure where to start?

Contact us through our contact form, and we will guide you every step of the way to comply with the CSRD and move towards real sustainability.