From January 2025, large companies will have to share standardised non-financial information, based on the CSRD and covering the 2024 financial year.
Are you ready for 2025? How will you report? What about the link with the GRI?
At CAP conseil, we closely follow the work and discussions related to this directive and we can help you with your CSRD reporting.
The Corporate Sustainability Reporting Directive (CSRD) is a European piece of legislation that is part of the European Green Deal policy, as is the Taxonomy, the publication of information on sustainable development in the financial services sector (SFDR) and the future Due Diligence directive.
Aiming at a greater transparency of the economy, the CSRD extends the obligation to produce a sustainability report to more companies and more non-financial indicators such as ESG (environmental, social, governance).
As a reminder, there are already extra-financial reporting obligations for listed companies via the transposition of the Non-Financial Reporting Directive (NFRD) into national legislation in Europe.
Targeted companies will have to disclose their environmental, social and governance policies and performance using the European Sustainability Reporting Standards (ESRS) developed to detail the required information. This new regulation, that will be transposed into national law in each European country, encourages companies to develop a more responsible strategy and practice in their business. This will enable investors, consumers, legislators and other stakeholders to better assess companies' ESG performance and redirect, where appropriate, their investments, purchases and subsidies to the most responsible companies.
The directive concerns two groups of enterprises:
large companies that meet at least 2 of these 3 criteria:
Listed companies (including SMEs with more than 10 employees or more than € 2 million turnover/balance)
The new CSRD directive will in a first stag apply to the first group (2025), then also to medium-sized companies two years later (2027).
The report will have to take the format of a single management report (merged with the annual financial report) and should therefore be published annually.
It will need to be fully audited by an independent third party that will provide at least a limited level of assurance.
It will have to appear in a digital format (xhtml). It has to be ‘machine readable’ to possibly be able to process the content in an automated way. There is talk of developing a centralised European portal where companies will have to upload their report.
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