Corporate Sustainability Reporting Directive (CSRD)

We use sustainability disclosures to turn risk into value

The Corporate Sustainability Reporting Directive, also widely known as the CSRD, is one of the most ground-breaking requirements for corporate disclosures on sustainability in the EU. As the successor of the Non-Financial Reporting Directive (NFRD), it aims to increase transparency and comparability of sustainability information. Although in the same spirit as the NFRD, the CSRD is much broader in scope and more prescriptive, creating detailed requirements intending to make companies more sustainable over time. This means that companies need to understand and report on many environmental and social metrics and implement appropriate strategies and governance to address sustainability related impacts, risks and opportunities. The directive is part of the European Green Deal, a package of several sustainability policies with the ultimate goal of making Europe the first continent to become climate-neutral by 2050.

ESG is our domain. And expertise matters for your CSRD journey

The right experts for your complex sustainability data

Unlike financial data that is uniform in global currencies, sustainability data is multi-layered and incredibly complex. Drilling into hundreds of granular environmental and social topics is what we do every day. This deep and specialized expertise helps you organize and manage your sustainability data better, which is crucial to align with CSRD. We have a deep technical understanding of CSRD’s current requirements and continuously stay on top of regulatory developments, ensuring that your company stays ahead in the ever-evolving reporting landscape.

Building programs to achieve compliance with sustainability regulations

For 50 years, we have helped Fortune 500 companies implement policies, management systems, internal control frameworks, and audit programs to comply with ESG regulations. At ERM, sustainability is not an add-on. It is our sole focus. We know how to prioritize the most material sustainability topics for your company, taking into account sustainability trends and investor views, ensuring you report transparently and efficiently according to CSRD requirements without being susceptible to risks such as legal penalties and reputational damage.

Move beyond compliance to value creation

CSRD isn’t just an accounting exercise but an opportunity to differentiate and gain competitive advantage. If you only aim to comply with CSRD, you are missing a critical opportunity for future-proofing your business. We offer holistic solutions, making ERM the perfect one-stop-shop for all your sustainability challenges. That means we leverage the data foundations needed for the CSRD to drive strategic planning for long-term value creation and commercial growth. ERM is powered by 3,000 consultants with Master's degrees and PhDs who will help achieve your strategic outcomes via on-the-ground action.

What companies fall in scope of the CSRD

CSRD is the new standard for sustainability reporting for companies domiciled or operating in the EU. Any EU company that meets at least two of the requirements must comply with the CSRD:

More than 250 employees
Turnover of more than €50 million
Balance sheet of more than €25 million

The CSRD scope will be extended to companies with the following requirements at a later date:

Listed small and medium companies
Non-EU based companies generating more than €150 million in revenues within the EU and at least one subsidiary or branch in the EU

CSRD's Timeline

Since the publication of the CSRD proposal by the EU Commission, a lot has happened. The timeline below shows the steps that have already been taken, and what steps you can expect in the future. The EU Commission has developed the CSRD and requested the EFRAG to create the ESRS (European Sustainability Reporting Standards). Currently, the final Directive and first set of standards are readily available, so you can align your company’s sustainability report with CSRD.

What ERM can support your organisation with

We understand that you might be overwhelmed with all that the CSRD brings. With our deep subject matter expertise, we can guide you to not only comply with the CSRD but to become a frontrunner in the field. These are some of the actions ERM can support your organization with:

Facilitating workshops to help you understand not only the framework, but also which aspects are relevant to your organization
Conducting the double materiality analysis forming the basis of CSRD disclosures and enabling insights for your business strategy
Performing gap assessments on your reporting maturity and current disclosures including providing suggestions on digital solutions to build on your existing data systems
Defining an action plan for your organization to become CSRD-ready
Guide you through operationalization of the CSRD as a single partner covering all phases of implementation
Supporting you to have bullet proof reporting in place to ensure assurability
Closing gaps across strategy, programs, processes, and governance to make sure you have something good to report on
Support you on an ongoing basis to transform your business strategy and communications to improve valuation of your business