CSRD, who, and when—in 200 words
Ultimately, CSRD (see our blog post 'CSRD, what is it—in 200 words') will apply to nearly 50,000 entities, which consist of large undertakings and small and medium-sized undertakings of public interest, in EU terminology.
The EU defines large undertakings as companies with either:
250+ employees, or
40+ million in net sales, or
a 20+ million balance sheet total,
And small and medium-sized undertakings of public interest as:
listed SMEs, and
small companies providing specific financial services (e.g., small insurance companies and small credit institutions), and
companies designated by their country of incorporation as of public interest.
The obligation to disclose their sustainability strategy and performance using the European Sustainability Reporting Standards comes into force in phases:
Over 2024: companies currently reporting their sustainability strategy and performance under the CSRD predecessor, the Non-Financial Reporting Directive (NFRD).
Over 2025: companies not previously subject to the NFRD requirements but now covered by the expanded scope of the CSRD.
Over 2026: listed SMEs and small companies providing specific financial services.
Over 2028: companies outside the EU with 150+ million in net sales in the EU and at least one subsidiary or branch within the EU.
Stay tuned and learn how companies must report in our upcoming blog post 'CSRD, how—in 200 words'.