Corporate Sustainability Reporting Directive (CSRD)

What do companies have to consider in future sustainability reporting according to the CSRD?

CSRD is coming. 15,000 companies will be required to report.
With the adoption of the Green Deal, the European Commission has set the course for the transformation of the economy towards greater sustainability. The aim is to make the EU the first greenhouse gas-neutral economic area by 2050, to significantly reduce pollutant emissions and to advance the circular economy. This should be made possible by the disclosure of sustainability information, which will affect even more companies in the future.

CSRD and ESRS: Don't be afraid of acronyms!
The current guideline on non-financial reporting (NFRD) is being adjusted and expanded as part of the Corporate Sustainability Reporting Directive (CSRD). The content to be reported is defined in the European Sustainability Reporting Standards (ESRS). These new standards create the conditions for companies to provide comparable data.

Double materiality as the core of the sustainability strategy
The central, new element of the CSRD is “double materiality”. Activities are classified as essential if they are significant from an ecological/ social perspective, or from a financial perspective. This can lead to an expanded reporting obligation compared to the NFRD. The ESRS also require companies to have a sustainability strategy with specific goals and measures.

How we support you

We help you not only to identify your main topics for a report, but also to make your company fit for the future with a holistic sustainability strategy and to actively help to shape the transformation.


CSRD Readiness Check

CSRD-compliant materiality analysis

Development of a sustainability strategy

Implementation and realisation of the sustainability strategy

Development of science-based climate targets

CSRD Reporting according to CSRD

What you need to know now

Here you will find the most important questions and answers about the CSRD. We are happy to answer your questions in a personal conversation.

1. What is the CSRD?

The Corporate Sustainability Reporting Directive (CSRD) replaces the previously applicable Non-Financial Reporting Directive (NFRD) and expands the existing reporting obligation for non-financial reporting. Whereas only 500 companies in Germany were required to report under the NFRD, there will be around 15,000 from the 2024 reporting year. According to the new regulation, the sustainability report must be integrated and checked in the management report. The CSRD is based on the EU taxonomy and the Sustainable Finance Disclosure Regulation (SFDR). 

2. Who is affected by the CSRD and when?

The CSRD officially came into force in November 2022. With the fulfillment of a wide range of characteristics, the introduction of the reporting obligation takes place according to a stage model:

1. Large public companies: Reporting in 2025 for FY 2024
2. Non-public companies: Reporting in 2026 for FY 2025
3. Capital market-oriented SMEs: Reporting in 2027 for FY 2026


3. What must be disclosed under the CSRD?

Disclosure is based on the principle of double materiality and covers the areas of environment, social affairs and governance.
In addition to the previous content requirements of the NFRD's sustainability reporting, the following information must be included:

  • Description of the business model and strategy in relation to sustainability aspects and stakeholder interests
  • Process for selecting material topics (double materiality)
  • Report on key sustainability issues including targets, planned measures and potential risks
  • Extension of the system boundaries to the upstream and downstream value chain
4. What is dual materiality under CSRD? 

The principle of double materiality is based on the consideration and categorization of sustainability aspects from two perspectives: the ecological and social perspective (impact of business activities on people and environment; inside-out perspective) and the financial perspective (importance of environmental issues for the company; outside-in perspective).
The rating as "essential" is based on a scale as part of a materiality analysis. The sustainability report according to CSRD must report on all topics that turn out to be significant in at least one of the two dimensions. Instead of just using the intersection of the two perspectives, as was done under the NFRD, the group of topics classified as essential is enlarged and provides more information.


5. Why is the CSRD sustainability report a business driver? 

In the future, investors and lenders will rely even more heavily on data from the sustainability report to make decisions. Other stakeholders such as society, customers and employees are also increasingly influencing the sustainable management of companies.
The CSRD requires the disclosure of essential business activities and strategic backgrounds. In this way, internal company processes will be optimized with the evaluation. This saves costs, leads to a better understanding of potential risks and opportunities and strengthens future viability. 

6. Implementation of the CSRD: how can help?

The preparation for the CSRD begins in a first step with an inventory as well as an analysis of the environment and a subsequent materiality analysis in the sense of double materiality. The key sustainability activities with global challenges for sustainable development in your core business are identified, stakeholder expectations integrated, and strategic and operational deductions made. We would be happy to support you in implementing the CSRD in your company and in achieving the greatest possible positive impact. 

Insights into the CSRD

You want to know more? Here you will find some selected articles on the Corporate Sustainability Reporting Directive and the EU Taxonomy.

Hendrik Leue in an interview with Umweltdialog

Who the CSRD Gap Assistant – our community tool for gap analysis and reporting – is suitable for and what it can do.

CSRD – What is in store for companies?

Interview with Philippe Diaz from WWF, who worked on the creation of the European Sustainability Reporting Standards on the CSRD.

Behind the scenes of EFRAG's LSME community

Our Senior Advisor for Sustainable Finance Hendrik Leue was selected to help shape EFRAG's CSRD reporting standards.

EU taxonomy: where does German industry stand?

An analysis of the taxonomy reporting of DAX 40 companies by Maresa Bachmann, Teresa Stetter and Hendrik Leue.

Your Contacts

Maresa Bachmann

Senior Consultant

Phone: +49 151 670 244 96


Philipp Schär

Managing Partner

Phone: +49 151 54035800