CSRD and corporate sustainability: a comprehensive overview

With our Sustainability Excellence team, we help businesses anticipate the upcoming Corporate Sustainability Reporting Directive (CSRD).

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How Möbius can help you meet your CSRD disclosure requirements

This directive requires listed and large companies to publicly disclose transparent information on ESG topics including financial disclosures, also known as CSRD reporting. Our end-to-end sustainability services are designed to assist companies in anticipating disclosure requirements and developing a sound sustainability strategy that adds value and promotes transparency. We work closely with our clients to identify the most important ESG topics for their business. From there, we assist them in developing the policies and actions needed to turn the strategy into concrete action and meet the disclosure requirements set by the European Commission.

Our team of experts also offers advice on governance structures and efficient data flows. This ensures that information is gathered in a structured manner which meets disclosure requirements. Let us help your organisation navigate the ever-changing sustainability landscape with confidence and drive positive impact for your stakeholders.

To which companies does the Corporate Sustainability Reporting Directive apply?

All listed companies on the EU regulated market (including listed SMEs, but no micro-enterprises)
All large companies exceeding two of the three following criteria*:
- > 250 employees and/or 
- > €50M Turnover and/or 
- > €25M Total Assets
Non-EU companies with net sales of more than €150 million in the EU, provided they have at least one subsidiary or branch in the EU that meets the above criteria.

*If the company is a subsidiary of a larger group, it is exempted from the obligations if the parent company produces a consolidated sustainability report that conforms with the directive.

What obligations will the CSRD impose?

Under the CSRD, a company will need to include in a dedicated section of its annual report (not in separate sustainability reports) the information necessary to understand the company’s impacts on sustainability matters as well as how sustainability matters affect the company’s own development, performance and position.

The information that a company is required to provide must include information about the company’s own operations and about its value chain.

Companies under scope will need to seek limited assurance of the sustainability information disclosed.

The CSRD amends the existing Non-Financial Reporting Directive (NFRD) and substantially increases reporting requirements. Additionally it applies to a drastically larger scope of companies (approx. 50.000 companies in the EU) across all sectors.

What should a company report according to European standards?

The specific disclosure requirement are detailed by the European Sustainability Reporting Standards (ESRS) to ensure that companies have clear standards to report in a consistent and comparable manner. The current standards are sector-independent, but will eventually be supplemented by sector-specific guidelines.

When do I take the first steps to comply?

NFRD-compliant companies already have to be compliant with the CSRD from the 1st of January 2024 onwards and all other large companies must comply with the CSRD from the financial year 2025 onwards. Therefore, we advise companies to start preparing as soon as possible.

A first step is to launch a double materiality process, that will determine what ESG related topics are material to the company. This step is mandatory for all companies under scope and will form the basis for the other CSRD requirements to respect.

Additionally a CSRD gap analysis would allow companies to have a better understanding to what extent the information available and the processes in place already meet certain requirements, and where action is required in order to make sure the company is prepared.

When must companies comply?

2025

Companies subject to NFRD*:

Reporting in 2025
(covering FY 2024)

*listed companies and bank and insurance companies meeting certain thresholds

2026

All large companies:

Reporting in 2026
(covering FY 2025)

2027

Listed SMEs:

Reporting in 2027*
(covering FY 2026)

*following simplified standards, for which standards are still being drafted

2029

Third country undertakings:

Reporting in 2029
(covering FY 2028)

Our experts in Sustainability Reporting

Thomas De Romagnoli

Mathias Fahy

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Are you prepared for the CSRD?

Learn how our Sustainability & Circular Economy experts can help you prepare your organisation for CSRD-compliant reporting or help you tackle your sustainability challenges.

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Frequently Asked Questions

What is CSRD and what does it stand for?

CSRD stands for Corporate Sustainability Reporting Directive. It is a regulatory framework introduced by the European Union to enhance sustainability reporting among companies. The CSRD aims to promote transparency and accountability by ensuring that companies provide comprehensive and standardized information on their environmental, social, and governance (ESG) performance.

What is the difference between CSRD and TCFD?

The CSRD and the TCFD (Task Force on Climate-related Financial Disclosures) are both initiatives aimed at improving sustainability reporting, but they have different focuses. The CSRD primarily focuses on corporate sustainability reporting, which encompasses a broader set of environmental, social, and governance (ESG) factors beyond just climate-related issues. It sets out requirements for companies to disclose information related to materiality, policies and actions, metrics and targets, and financial effects across various ESG topics.On the other hand, the TCFD specifically addresses climate-related risks and opportunities. It provides recommendations for companies

Why was the CSRD introduced?

The CSRD (Corporate Sustainability Reporting Directive) was introduced to enhance corporate transparency and accountability regarding sustainability matters. It aims to ensure that companies provide consistent and reliable information on their environmental, social, and governance (ESG) performance. The CSRD expands on the existing reporting requirements outlined in the Non-Financial Reporting Directive (NFRD) by introducing more detailed and standardised reporting obligations for a wider range of companies. By implementing the CSRD, the European Union seeks to promote sustainable finance, facilitate informed decision-making by investors and stakeholders, and drive progress towards a more sustainable economy.