The EU Corporate Sustainability Reporting Directive (CSRD) regulates the reporting obligations for companies in the European Union. Among other things, it defines which companies must report from what point in time. The CSRD thus replaces the previously applicable rules in the Commercial Code (HGB).

CSRD Berichtspflicht

The CSRD-compliant sustainability report is part of the company’s official management report as a non-financial statement. Content requirements are specified by the European Sustainability Reporting Standards (ESRS). With the help of a materiality analysis, the reporting companies determine the sustainability aspects that are integrated into the report.

From 1 January 2024, a limited group of companies will initially be required to report, which will then be expanded:

  • Fiscal years starting from 1 January 2024: public-interest entities with more than 500 employees that are already subject to the obligation to submit a non-financial declaration,
  • Fiscal years starting from 1 January 2025: all other large companies in terms of accounting law,
  • Financial years starting from 1 January 2026: capital market-oriented SMEs (there are postponements), very small enterprises are exempt.
  • Fiscal years beginning on or after January 1, 2028: Companies from third countries outside the EU that generate net sales of € > 150 million in the EU and whose subsidiaries or branches in the EU generate net sales of € > 40 million.

The listed size categories of companies are regulated by HGB §267 (excerpt): (1) Small corporations are those that do not exceed at least two of the following three characteristics:

  1. 7,5 Mio. € balance sheet total
  2. 15 Mio. € net income in the last twelve months
  3. 50 staff in average

(2) Medium-sized corporations are those that exceed at least two of the three characteristics specified in paragraph 1 and do not exceed at least two of the following three characteristics:

  1. 25 Mio. € balance sheet total
  2. 50 Mio. € net income in the last twelve months
  3. 250 staff in average

(3) Large corporations are those that exceed at least two of the three characteristics specified in paragraph 2. A corporation within the meaning of section 264d is always deemed to be a large corporation.