Filip Kollarz, CEO & Co-Founder
filip.kollarz@coarconsulting.se
072-307 31 99
In 2025, the first companies are set to implement the new CSRD directive
Are you familiar with CSRD and what it means for your company?
What is CSRD?
CSRD (Corporate Sustainability Reporting Directive) is an EU directive that regulates how companies must report sustainability information in their annual reports. The directive aims to achieve increased transparency and comparability among companies.
CSRD replaces the previous directive, NFRD (Non-Financial Reporting Directive). To clarify what and how companies should report, the EU has developed ESRS (European Sustainability Reporting Standards). ESRS consists of twelve cross-sectoral standards that companies must follow to report in compliance with CSRD.
Which companies need to comply with the new directives?
Which companies that need to report and when depends on the company’s size and whether it is publicly listed or not. See the following pages for an overview of the specific requirements.
CSRD is being implemented in four stages…
1.
In 2025, companies with more than 500 employees already subject to NFRD must report for the financial year 2024.
However, in Sweden, the government has adopted a proposal to postpone this requirement from January 1, 2024, to fiscal years starting on or after July 1, 2024. This means that large companies without a split fiscal year will not need to report for the financial year 2024, but for 2025 instead.
2.
In 2026, large companies not covered by the NFRD and meeting at least two of the following criteria must report for the financial year 2025:
- More than 250 employees
- More than EUR 40 million in turnover
- More than EUR 20 million in assets
3.
In 2027, publicly listed small and medium-sized enterprises (SMEs) that meet at least two of the following criteria must report for the financial year 2026:
- More than 50 employees
- More than EUR 8 million in turnover
- More than EUR 4 million in assets
However, exceptions exist that allow companies to postpone reporting until 2028.
4.
In 2029, non-European companies with turnover exceeding EUR 150 million in the EU must report for the financial year 2028.
How can companies prepare?
To prepare for the new directives, a good first step is to identify and evaluate the current state of reporting. Companies can then compare this with the upcoming requirements to identify gaps.
A double materiality analysis should also be conducted to assess the company’s sustainability impacts and risks from both a consequential and financial perspective. This analysis will help determine which sustainability areas are essential and need to be reported according to the ESRS.
COAR & CSRD
Is your company prepared for the upcoming directives and aware of how to align your organization with them?
If you or your company want to learn more about the CSRD and its standards, reach out! At COAR Consulting, we’re here to share our knowledge and expertise.
Here’s how we can help
- Double Materiality Analysis
- Introductory Course on CSRD
- GAAP Analysis
- Sustainability Strategy
- CSRD Roadmap
Curious to learn more? Let’s grab a coffee and discuss!
MEET THE AUTHOR
Filip Kollarz, CEO & Co-Founder
filip.kollarz@coarconsulting.se
072-307 31 99
coarconsulting.se 