The CSRD requires companies to attach a transparent sustainability report to their management report – and to have their disclosures audited by an independent body. This EU directive has widened the scope of sustainability reporting to include small and medium-sized enterprises. In the coming years, around 15,000 companies across Germany will be legally required to prepare sustainability reports and have them audited. Check whether your business is affected:

Reporting deadlines

2024

Companies already required to submit sustainability reports are now subject to CSRD reporting obligations. Data must be collected for the 2024 financial year. The sustainability report will be published in 2025.

2025

CSRD reporting will become mandatory for large enterprises in 2025. The sustainability report will be published in 2026, including data for the 2025 financial year.

2026

From 2026, the CSRD will also apply to small and medium-sized listed companies. They will have to collect data from the start of the 2026 financial year and submit their reports in 2027.

2028

From 2028, all non-EU companies generating at least € 150 million in net revenue and operating a branch or subsidiary in the EU will also be required to publish reports.

Company classifications

Large enterprises

A company qualifies as a large enterprise if it meets at least two of the following criteria:

  • 250 or more employees
  • € 40 million or more in net revenue
  • € 20 million or more in total assets

Small and medium-sized enterprises

A corporation falls into this category if it meets at least two of the following criteria:

  • 10 or more employees
  • € 700,000 or more in net revenue
  • € 350,000 or more in total assets

Non-EU companies

Any companies not headquartered in the EU fall into this category if they meet the following criteria:

  • > € 150 million in revenue generated in the EU
  • At least one branch in the EU OR
  • A subsidiary in the EU
[Translate to English:] TÜV Hessen CSRD - Unsere Leistungen

Our services:

Our experts know the ins and outs of the Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards (ESRS) and the German Sustainability Code (DNK). Once the EU directive has been transposed into German law, TÜV Hessen will be your trusted partner. As a reputable, independent inspection body, we can verify the information disclosed in your reports in accordance with the CSRD and ESRS.

Your benefits:

  • CSRD compliance: By having your sustainability disclosures audited in line with CSRD standards, your reporting will be fully compliant with upcoming EU legal requirements.
  • Enhanced reputation: Our CSRD-compliant audit will have a positive impact on your corporate image and reflect your commitment to sustainable business.
  • Extensive expertise: TÜV Hessen’s experts have in-depth knowledge of the industry. We understand how your reporting indicators are closely linked to other (management) systems within your company.
  • Flexibility: We can also work closely and efficiently with your external auditors.
[Translate to English:] TÜV Hessen CSRD - Ihre Vorteile

Reporting from 2024 onwards

The CSRD has significantly expanded the scope of mandatory sustainability reporting for companies in the EU. From 2024 onwards, reports must be prepared exclusively in line with the European Sustainability Reporting Standards (ESRS). The new standards build upon the previous Non-Financial Reporting Directive (NFRD), with greater emphasis placed on the principle of “double materiality”. This approach to reporting promotes a comprehensive view of a company’s significant impacts on the three pillars of sustainability: environment, society and governance. As a result, corporate sustainability reporting will become more thorough and uniform. Greater quantification will also make disclosures more measurable and comparable. The EU directive is expected to be transposed into German law in 2023. The following standards and guidelines will be included in the new legislation.

Standards and guidelines

Global Reporting Initiative (GRI):
The sustainability reporting standards established by the independent Global Reporting Initiative (GRI) have become the most widely used across the globe. The sustainability disclosures of most companies are based on the GRI Standards.

European Sustainability Reporting Standards (ESRS):
The European Financial Reporting Advisory Group (EFRAG) has established a set of mandatory European Sustainability Reporting Standards (ESRS) for all companies falling under the scope of the CSRD.

New requirements in sustainability reporting

The CSRD makes the principle of “double materiality” mandatory for companies. This means reporting not only on how their business operations impact people and the environment (inside-out), but also on how sustainability factors affect their company (outside-in).

From 2024, sustainability reporting will be subject to independent external auditing (just like financial statements). Audit depth will gradually increase – starting with limited assurance and later expanding to reasonable assurance.

Sustainability reporting will become a mandatory aspect of a company’s management report, thereby elevating the importance of sustainability disclosures to the same level as financial reporting.

Since January 2020, certain publicly traded companies have been required to present financial reports in the European Single Electronic Format (ESEF). This can be read by both humans and machines. Consolidated financial statements are prepared in XHTML using XBRL tags. The CSRD will extend this requirement to sustainability reporting. A new XBRL taxonomy is being developed specifically for sustainability data.