Automated and Assurance Ready CSRD (ESRS) Report

The CSRD applies to large companies that meet at least two of the following criteria: More than 250 employees, Net turnover exceeding €40 million, Total assets over €20 million. Additionally, all companies listed on EU regulated markets, except micro-enterprises, are subject to the CSRD. Notably, recent proposals suggest raising the employee threshold to over 1,000, effectively reducing the number of companies required to report under the CSRD.

Companies are required to report on a broad range of sustainability topics, including: Environmental matters (e.g., climate change mitigation, resource use), Social and employee-related aspects (e.g., working conditions, diversity), Human rights, Anti-corruption and bribery, Governance factors. The disclosures should cover both the impacts of these factors on the company and the company’s impact on these factors, following the principle of double materiality.

The CSRD requirements are being implemented in phases, to ease the process of reporting: FY 2024-25: Reporting for large companies already subject to the Non-Financial Reporting Directive (NFRD). FY 2025-26: Reporting for large companies not previously subject to the NFRD. FY 2026-27: Reporting for listed small and medium-sized enterprises (SMEs), small and non-complex credit institutions, and captive insurance undertakings. However, recent developments indicate a potential delay in the start date for certain obligations to mid-2028.

Yes, non-EU companies with substantial activities in the EU are subject to the CSRD. Specifically, companies generating a net turnover of more than €150 million in the EU and having at least one subsidiary or branch in the EU meeting certain criteria will need to comply with the CSRD requirements.

The ESRS are a set of standards developed to specify the sustainability information that companies need to report under the CSRD. They aim to ensure that the reported information is comprehensive, relevant, and comparable across companies and sectors.

Yes, the CSRD introduces a requirement for companies to obtain limited assurance over their sustainability information. This means that an independent auditor or certifier will need to verify the reported information, enhancing its reliability.

Yes, the TCFD has developed supplemental guidance for specific sectors, particularly those with significant exposure to climate-related risks and opportunities. These sectors include energy, transportation, materials and buildings, and agriculture, food, and forest products. The supplemental guidance offers additional context and suggestions tailored to these industries.