Sustainability Reporting – CSRD

Sustainability reporting helps and guides organisations in showcasing their impact on the market, the environment, and society. Sustainability is an important segment, and it is rapidly evolving, which can present challenges in understanding and implementing all the new laws and regulations that come into play. At Forvis Mazars, we provide a comprehensive range of sustainability reporting solutions to help your company meet these new requirements.

In June 2023, the new EU directive CSRD (Corporate Sustainability Reporting Directive) came into effect. The directive applies to approximately 50,000 companies within the EU and ensures that they prepare a sustainability report on their impact on society and the environment. The report is presented in the management report section of the company’s annual report, and the information is third-party audited.

Timeline for Corporate Sustainability Reporting Directive (CSRD): 

Below is the timeline indicating when CSRD will apply to different types of companies:

• 1 January 2024 (reporting in 2025) – EU-PIE > 500 employees. For companies already subject to the Non-Financial Reporting Directive (NFRD).
• 1 January 2025 (reporting in 2026) – For large companies currently not subject to the Non-Financial Reporting Directive, with 250 employees, €550 million in turnover, and €280 million in total assets.
• 1 January 2026 (reporting in 2027) – For listed SMEs (small and medium-sized enterprises), small and non-complex credit institutions, and captive insurance companies. An exception will be possible for small and medium-sized enterprises during a transitional period, meaning they will be exempt from the application of the directive until 2028.
• 1 January 2028 (reporting in 2029) – For non-EU parent companies with over €1.7 billion in turnover in the EU in 2028 (certain information).

The EU directive, the Corporate Sustainability Reporting Directive (CSRD), replaces the previous directive for sustainability reporting, the Non-Financial Reporting Directive (NFRD). CSRD came into effect in 2023, expanding the number of companies subject to sustainability reporting according to specific standards, the European Sustainability Reporting Standards (ESRS).

More about how we can help SMEs with sustainability matters:

Companies reporting under the CSRD need to obtain sustainability data from, among other sources, their suppliers. As a result, non-listed small and medium-sized enterprises (SMEs) are indirectly subject to sustainability requirements. To meet the demands of larger customers and enhance their competitiveness and attractiveness in the market, SMEs can report according to the voluntary standard VSME (Voluntary SME), developed in connection with the CSRD, but with simplified requirements.

Our services include:

• Identification of reporting standards for your company
• Training for the board/ employees on:
  • CSRD, Corporate Sustainability Reporting Directive
  • VSME, Voluntary Sustainability Reporting Standard for Non-Listed Micro, Small, and Medium Enterprises
  • LSME, Legal Reporting Standard for Small and Medium Enterprises
• Double materiality analysis and identification of significant impacts, risks, and opportunities
• Gap analysis
• Data collection and compilation for sustainability reporting
• Assistance in establishing sustainability processes, e.g., policies
• Development of long-term sustainability strategies
• Auditing and assurance of sustainability reports