CSRD

Corporate Sustainability Reporting Directive

The EU-wide CSRD requires companies to ensure full transparency in ESG reporting. With our CSRD advisory services, we help you collect ESG data in line with the European Sustainability Reporting Standards (ESRS) and transform them into compliant reports.

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EU Commission Publishes Omnibus Proposal

On February 26, 2025, the European Commission presented the Omnibus Proposal, aimed at simplifying sustainability reporting and supply chain transparency for companies. The proposal must now be reviewed and approved by the European Parliament and EU Member States before it can take effect.

Key proposed changes:

The new thresholds apply to companies with more than 1,000 employees and either more than €50 million in net turnover or more than €25 million in total assets. This change reduces the number of companies subject to CSRD reporting by approximately 80%.

Companies with up to 1,000 employees that are no longer subject to the CSRD will follow a voluntary reporting standard (VSME) developed by EFRAG. This limits the amount of information that larger, reporting companies or banks can request from smaller business partners in the value chain.

The European Sustainability Reporting Standards (ESRS) will be revised to reduce the number of required data points, clarify ambiguous provisions and improve alignment with other EU regulations.

The proposal removes the possibility of transitioning from Limited Assurance to Reasonable Assurance for sustainability reports.

Large companies that have not yet implemented the CSRD, as well as listed SMEs, will be granted an additional two years to comply with reporting obligations. This extension allows EU legislators time to finalize the proposed changes.

What does this mean for your business?

The implementation of the reporting obligation has been officially postponed by two years. 

This gives companies more time to prepare for the complex requirements of the CSRD and the ESRS standards. At the same time, the CSRD remains in force – meaning a strategic focus on transparent sustainability reporting is still essential.

Use this time to close gaps, establish processes, and align your sustainability management strategically.

Secure our CSRD advisory services now and stay prepared!

What is the CSRD, and why is it important for your business?

The Corporate Sustainability Reporting Directive (CSRD) aims to enhance and standardise corporate sustainability reporting. It expands the requirements of the Non-Financial Reporting Directive (NFRD) and mandates detailed reporting on Environmental, Social, and Governance (ESG) factors.

The CSRD promotes transparency and accountability in sustainability, ensuring that companies take their environmental and social impacts seriously. It helps build trust among investors, customers, and the public while contributing to long-term risk mitigation and value creation. Additionally, the directive enhances the comparability of sustainability data across companies.

CSRD requirements for companies:

  • Detailed sustainability reporting: Companies are required to provide comprehensive and standardised reporting on non-financial matters. Reports must offer a holistic view of relevant ESG aspects. A materiality assessment is crucial to identify the most relevant topics for the company and its stakeholders.
  • Double materiality: The CSRD requires companies to consider two perspectives to provide a complete picture of impacts, risks, and opportunities:
    • Impact materiality: The effects of business activities on the environment, society, and stakeholders.
    • Financial materiality: Risks and opportunities arising from external factors affecting the company itself.
  • Compliance with European Sustainability Reporting Standards (ESRS): Companies must align their reporting with the ESRS, which define how ESG data should be collected and disclosed in a standardised manner.
  • External assurance of reports: Sustainability reports must undergo external audits to ensure the credibility and reliability of the disclosed information, similar to financial reporting.
  • Integration into the management report: The CSRD mandates that sustainability reporting be incorporated into the management report. It cannot be provided separately and must be closely linked with financial information to offer a holistic view of the company’s performance.
  • Machine readability and tagging: Reports must be prepared in a machine-readable format using digital tagging standards to enable automated analysis and comparison of ESG data.
  • Link to the EU Taxonomy: Companies subject to the CSRD must also meet the requirements of the EU Taxonomy, disclosing to what extent their activities are sustainable under the taxonomy framework.

Who is affected?

The CSRD reporting requirements are being introduced in stages. Swiss companies doing business in the EU or that are part of the supply chain of a company subject to the CSRD may also be affected. Companies that fall under the CSRD reporting obligation are also required to apply the EU Taxonomy.

As part of the Omnibus proposal, it was decided to postpone the introduction of CSRD reporting requirements by two years. The revised provisions are expected to be transposed into national law by 31 December 2025.

The following application timelines currently apply:

From the 2024 financial year (reporting in 2025): Companies already subject to the Non-Financial Reporting Directive (NFRD)
This includes public interest entities such as listed companies, banks, and insurance companies that meet at least two of the following three criteria:

  • More than 500 employees
  • Over €50 million net revenue
  • Over €25 million total assets

 

NEW: From the 2027 financial year (reporting in 2028):
Large companies, including non-listed firms with:

  • More than 1000 employees and
  • Over €50 million net revenue or
  • Over €25 million total assets
  •  

From the 2028 financial year (reporting in 2029):
Non-EU companies meeting the following criteria:

  • Over €450 million net revenue in the EU and
  • a large EU subsidiary or branch

Implications for Swiss companies

For Swiss companies affected by the CSRD, adjustments to data collection and reporting systems will be necessary to disclose detailed information on their ESG practices.

  • Indirect impact via supply chains (from 2024): Companies in the supply chain of CSRD-reporting EU firms may be required to provide ESG data for compliance purposes.
  • Direct reporting obligation for large EU subsidiaries or branches (from 2027): Swiss companies with EU subsidiaries exceeding CSRD thresholds will be subject to reporting. While only the EU unit is directly obligated, the Swiss parent may need to contribute data for the process. Alternatively, reporting can be consolidated at the group level in Switzerland for efficiency.
  • Obligations for non-EU companies (from 2028): From 2028, Swiss companies with over €450 million net revenue in the EU and large EU subsidiaries will also be subject to the CSRD. In this case, the entire company – not just the EU entity – must comply.

Even if the CSRD directly applies only to large and listed firms, its standards and transparency requirements will likely affect smaller suppliers and partners, particularly if they are part of the supply chain of affected EU entities.

Developments in Switzerland

Swiss regulations are expected to align with EU standards over time. Larger Swiss companies should monitor these developments closely and take early action to ensure compliance with future requirements.

Swiss companies impacted by the CSRD should start preparations early. This includes reviewing current reporting practices, adapting internal processes, and training employees on the new standards.

Your next steps

  1. Conduct a materiality assessment: Identify the key ESG topics relevant to your company and stakeholders.
  2. Perform a gap analysis: Analyse which CSRD requirements are already met and where gaps exist. This provides clarity on necessary steps.
  3. Develop a sustainability strategy: Define clear goals and actions to improve ESG performance.
  4. Optimise data collection: Ensure that relevant data is collected and aligns with ESRS standards.
  5. Create a sustainability report: Prepare a report that fully meets CSRD requirements.

With our support, your company can meet the CSRD’s demands and benefit from transparent, sustainable reporting.

Contact us today for a non-binding consultation.

Ready for CSRD? We’ll guide you through the process!

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  • info@su-consulting.ch
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FAQs about the CSRD

The Corporate Sustainability Reporting Directive (CSRD) is an EU regulation aimed at improving and standardising corporate sustainability reporting. It replaces the Non-Financial Reporting Directive (NFRD) to increase transparency and comparability of Environmental, Social, and Governance (ESG) data, driving sustainability transformation across businesses.

The CSRD applies to more companies and requires detailed, standardised reports following the European Sustainability Reporting Standards (ESRS). It also mandates external assurance and integration of sustainability reports into management reports.

The CSRD aims to increase ESG transparency, provide reliable data to investors, encourage sustainability in businesses, and support the EU’s climate objectives.

The CSRD applies to large companies within the EU and, from 2028, to non-EU companies operating in the EU. It also applies to listed SMEs on regulated markets.

The CSRD will be phased in as follows:

  • 2024: Companies already subject to the NFRD.
  • 2025: Large companies meeting two of the following: 250 employees, €50m turnover, or €25m total assets.
  • 2026: Listed SMEs.
  • 2028: Non-EU companies with over €150m turnover in the EU.

Companies must provide comprehensive ESG disclosures, undergo external audits, integrate sustainability reports into their management report, and ensure machine-readable reporting. They must also comply with the EU Taxonomy.

Double materiality evaluates:

  • Impact materiality: How your company impacts the environment and society (e.g., CO₂ emissions, social equity).
  • Financial materiality: How environmental and social factors affect your company (e.g., climate risks, regulatory changes).
    Both aspects are key to CSRD reporting.

The EU Taxonomy defines what qualifies as sustainable economic activity. Companies subject to the CSRD must disclose how their operations align with these criteria.

The ESRS specify which ESG data companies must report and how to present it in a standardised, comparable format.

Check if your company:

  • Operates in the EU (e.g., through a subsidiary or branch).
  • Meets the CSRD thresholds (250 employees, €50m turnover, or €25m total assets).
  • From 2028, non-EU companies with over €150m EU turnover will also be covered.

We are happy to support you – feel free to request a non-binding consultation.

  • Follow the ESRS guidelines for data collection and reporting.
  • Conduct a gap analysis to identify areas for improvement.
  • Have your reports externally assured to ensure credibility and compliance.
  • Conduct a materiality assessment to identify key ESG topics.
  • Perform a gap analysis to determine where your current reporting falls short.
  • Develop a clear sustainability strategy.
  • Optimise data management and reporting processes.

Feel free to request a non-binding consultation.

A gap analysis identifies which CSRD requirements your company already meets and where improvements are needed. It helps prioritise actions to ensure compliance.

Start with a gap analysis to identify missing data and develop a roadmap to address these gaps over time. Early preparation is essential.

Reports must be machine-readable, using digital tagging standards to enable automated analysis and comparability of ESG data.

Yes, the CSRD requires sustainability reports to be externally audited to ensure credibility and reliability.

Sustainability reporting must be part of the management report and closely linked to financial information, providing a complete view of the company’s performance.