Corporate Sustainability Reporting Directive (CSRD)

The CSRD expands on the previous Non-Financial Reporting Directive (NFRD) and mandates that companies report in detail on their sustainability activities. A core element of the directive is the concept of double materiality, requiring companies to disclose both the impact of their operations on the environment and society, as well as how sustainability risks affect their business.

A key update within the CSRD is the obligation to submit reports in a standardized digital format (XHTML). These reports must be prepared according to established ESG criteria and are subject to strict auditing requirements to ensure transparency. This applies not only to large, publicly traded companies but also to many medium-sized businesses that were not previously required to report.

The tracking of Scope 3 emissions—indirect emissions across the entire supply chain—is particularly challenging. Companies must provide comprehensive, annual reports with a focus on emissions reduction and regulatory compliance.

For industrial companies in the manufacturing sector, the CSRD is particularly relevant. Following the finally adopted EU Omnibus I, new thresholds apply: EU companies with more than 1,000 employees and revenue exceeding €450 million are subject to reporting obligations. These reports cover, among other things, CO₂ emissions generated across the entire value chain, including Scope 3 emissions. For companies with complex supply chains in particular, meeting CSRD requirements is critical — not only to avoid regulatory sanctions, but also to build trust with investors and stakeholders.