In the ever-evolving landscape of global business, sustainability has become a top priority, transcending the boundaries of large corporations, and extending its reach to small and medium-sized enterprises (SMEs). A significant catalyst for this change is the introduction of the Corporate Sustainability Reporting Directive (CSRD) by the European Union. This directive, effective from January 1, 2024, mandates companies with a net turnover of €50 million, assets worth €25 million, or 250 or more employees to disclose social and environmental impacts.
CSRD Reporting Obligation for Large Companies (2024-2025)
Starting in 2024, companies with a net turnover of €50 million, assets worth €25 million, or 250 or more employees are required to report their sustainability efforts, assessing the impact of their activities and production processes, including those of their supply chain partners. The reporting deadline is set for 2025, emphasizing the urgency for companies to adequately prepare.
CSRD Compliance Timeline (2024-2029)
The CSRD compliance timeline outlines phased-in obligations for companies of varying sizes and jurisdictions. From large, listed organizations to SMEs, each entity is required to adhere to specific reporting criteria, with deadlines extending until 2029.
CSRD: A Paradigm Shift for all companies
In essence, CSRD represents a pivotal moment for all companies, signaling a paradigm shift towards greater accountability and transparency. Embracing sustainability reporting and carbon accounting not only ensures compliance with regulatory requirements but also opens avenues for growth, innovation, and long-term resilience in an increasingly sustainable business environment. You can find more information here.
