The CSRD in a nutshell
What is the CSRD?
The Corporate Sustainability Reporting Directive is an EU regulation designed to boost transparency and hold companies accountable for their environmental, social, and governance (ESG) impacts. If you’re covered by the CSRD, you’ll need to disclose your company’s sustainability practices.
What is the scope of the regulation?
The CSRD applies to large companies, listed SMEs, and financial institutions in the EU. You’ll be required to report on both how your business impacts the environment and society, and how sustainability risks affect your financial performance.
What are the key CSRD requirements?
Under the CSRD, you’ll need to conduct a double materiality assessment, report on climate risks, and provide data on governance and social issues. Your reporting must align with the European Sustainability Reporting Standards (ESRS) and be included in your annual reports.
What is Double Materiality?
Double materiality means you’ll assess how sustainability issues impact your company’s finances, and how your operations affect the environment and society. It’s a critical part of your CSRD reporting obligations.
Your Guide to CSRD Compliance
Get the key insights and tools to achieve CSRD compliance and adopt sustainable reporting
CSRD compliance scope & timeline
Large EU Companies
- Reporting required for major entities already under NFRD
- Reports for fiscal year 2024, due in 2025
Additional Large Companies
- New large firms meeting 250+ employees,
- €50M+ revenue, or €25M+ assets
- Reports for fiscal year 2025, due in 2026
Listed SMEs
- SMEs on EU markets with 10+ employees, €900K+ turnover, or €450K+ assets
- Reporting starts in 2026, opt-in until 2028
Non-EU Companies
- Global firms with €40M+ turnover in the EU or an EU branch
- Comply with CSRD standards from 2028
Deep dive into the CSRD
Here’s how CSRD compliance works with Sweep
Step 1
Perform materiality assessment
Conduct your double materiality assessment based on your industry sector.
Then, refine your financial impact and impact threshold limits, focusing your efforts on critical sustainability topics.
Step 2
Identify gaps and collect data
Check data availability and potential gaps, and streamline stakeholder engagement with surveys and file imports.
Improve governance by defining clear roles and responsibilities.
Step 3
Check and approve data points
Use an advanced validation workflow to accept or reject an entire survey or individual responses.
Include comments and documents to support answers and provide explanations.
Step 4
Monitor campaign progress
Keep track of your data collection and find any missing information.
Check each indicator’s status and take action. Send reminders to complete reporting campaigns.
Step 5
Run internal controls and audits
Identify and correct any errors, duplicates, and irregularities in your dataset.
Track all changes across the platform, make comments and add supporting documents.
Step 6
Submit CSRD report to authorities
Compile, export, and review your material indicators in the required reporting format.
Tag your indicators for machine-readable format suited for the ESAP platform.
They trust Sweep
“With the growing number of sustainability regulations (such as the CSRD) and stakeholder demands for transparency, companies are under pressure to accurately communicate their impact. By working with tech partners like Sweep, large organizations can streamline the collection, monitoring, and reporting of their data in one single place.”
See how Sweep simplifies CSRD compliance for your organization
