CSRD Reporting: A Reality Check For European Firms

Around 50,000 global companies will be subject to CSRD reporting ... few are actually ready

For some firms, ESG reporting is still a "nice to have." For firms in the EU, and firms conducting business in the EU, it is now a matter of compliance.

On January 5^, 2023, the EU Corporate Social Responsibility Disclosure (CSRD) went into force—the first companies governed by the directive will have to apply the new requirements for the financial year 2024. Eventually, the CSRD will apply to an estimated 50,000 companies across the EU. Our research suggests many firms are not ready.

The applicability of CSRD will be expanded in a staged approach for the financial years 2025, 2026, and 2028. Small- and medium-sized enterprises (except micro undertakings), small and non-complex credit institutions, and captive insurance undertakings will be required to report, as will non-EU undertakings with a turnover above €150 million in the EU if they have at least one subsidiary