%%CSRD Reporting Requirements%% 2025: Complete Guide

The Corporate Sustainability Reporting Directive (CSRD) is reshaping how companies disclose their environmental, social and governance performance. It expands CSRD reporting requirements to thousands of businesses and sets stricter rules for accuracy, transparency and audit readiness. With the first major reporting cycles beginning in 2025, organisations are now strengthening their data systems and preparing for detailed ESRS-aligned disclosures.

This blog explains CSRD meaning, who needs to comply and what the new reporting requirements include. It also outlines the 2025 reporting timeline and the key steps companies should take to prepare effectively.

What Is the CSRD and Who Needs to Comply?

The Corporate Sustainability Reporting Directive (CSRD) is the EU’s updated law for sustainability reporting. It requires companies to share clear and detailed information about their environmental, social and governance (ESG) impacts. The CSRD was introduced in 2021 and replaces the older NFRD rules. With this update, the number of companies that must report has grown from about 11,700 to nearly 50,000.

CSRD requires companies to explain two things. First, how their business activities affect people and the environment. Second, how climate and social issues may affect their financial performance. This is called double materiality. 

Companies must follow the European Sustainability Reporting Standards (ESRS) and report on areas like climate, pollution, resources, workforce, community and governance. They must also publish Scope 1, Scope 2 and Scope 3 emissions and share clear plans to reach net zero by 2050. All reports must be digital and reviewed by independent auditors.

Who must comply with the CSRD?

The CSRD applies to a wide range of organisations, and the scope is much larger than the previous NFRD. Large EU companies must comply if they meet specific size conditions. These thresholds help determine whether an organisation falls under the directive.

Companies are considered in scope if they meet at least two of the following criteria:

• More than 250 employees
  
  
• Annual turnover above €40 million
  
  
• Total assets greater than €20 million
  
  

The CSRD also applies to all companies listed on EU-regulated markets, excluding very small firms. Beyond Europe, non-EU companies must comply if they generate €150 million or more in EU turnover and have a major EU branch or subsidiary.

CSRD Reporting Timeline: When Reporting Begins

The CSRD follows a phased rollout, meaning different types of companies start reporting in different years. The timeline was updated in April 2025 after the EU Commission voted to delay compliance by two years for most organisations. As a result, businesses preparing to meet EU CSRD reporting requirements will now work with data from financial years between 2024 and 2028.

Here is the updated reporting schedule:

Wave 1: First reports in 2025 (FY 2024)

Companies already covered under the old NFRD report first. These include large listed companies and public-interest entities with more than 500 employees. Their timeline did not change, so they must submit their first CSRD-aligned reports in 2025 based on 2024 data.

Wave 2: First reports in 2028 (FY 2027)

Large companies with more than 250 employees that were not previously under NFRD report next. These firms were originally expected to report in 2026 but received a two-year extension under the “Stop-the-Clock” directive. Their first CSRD report is now due in 2028 and will cover 2027 data.

Wave 3: First reports in 2029 (FY 2028)

Listed small and medium-sized enterprises begin reporting after large companies. SMEs were initially scheduled for 2027 reports, but their timeline was also pushed back by two years. They now submit their first CSRD report in 2029 for the 2028 financial year.

Wave 4: First reports in 2029 (FY 2028)

Non-EU companies that meet CSRD criteria also report for the first time in 2029. This includes companies that earn €150 million or more in EU turnover and operate through qualifying EU subsidiaries or branches. Their first report will also cover the 2028 financial year.

Overall, the timeline means most businesses will prepare CSRD reports based on financial years from 2024 to 2028. Early preparation is important because each reporting wave requires strong ESG data, clear documentation and audit-ready processes.

Key CSRD Reporting Requirements 2025

The CSRD introduces one of the most detailed sustainability reporting frameworks in the world. All disclosures must follow the European Sustainability Reporting Standards (ESRS), which outline what companies need to report across environmental, social and governance areas. Reports must be independently verified, published digitally and integrated with financial disclosures to ensure transparency and comparability.

General CSRD Reporting Requirements 2025

The CSRD’s core requirement is to report using ESRS. These standards outline what companies must disclose across environmental, social and governance areas and how these disclosures should be organised.

1. Environmental Disclosures

CSRD requires companies to provide detailed information about their environmental impacts across their entire value chain. Organisations must report their Scope 1, Scope 2 and Scope 3 emissions and explain how they manage climate-related risks and opportunities. 

They must also disclose their use of natural resources, levels of pollution, impact on biodiversity and ecosystems, and their approach to circularity and waste reduction. These disclosures show how the company affects the environment today and how it plans to reduce negative impacts over time.

2. Social Disclosures

Social reporting under CSRD focuses on how a company affects people throughout its operations and value chain. Companies must share information on workforce conditions, labour rights, health and safety, and employee well-being. 

They must also disclose data on diversity, equal opportunities and inclusion. Beyond internal staff, companies must explain their impact on workers in the supply chain, local communities and end-users who rely on their products or services. This creates a clearer picture of the organisation’s social responsibility.

3. Governance Disclosures

Governance disclosures provide insight into how a company embeds sustainability within its leadership and decision-making processes. Under the CSRD, organisations must explain how their board and senior management oversee ESG issues, including who is responsible and how often topics are reviewed. 

They must outline the policies that guide ethical conduct, transparency and compliance, and describe how anti-corruption and fraud-prevention systems operate in practice. Companies must also show how sustainability risks and opportunities are identified, escalated and monitored across different departments. These disclosures help stakeholders assess accountability, integrity and the organisation’s overall commitment to responsible governance.

4. Double Materiality Requirement

Double materiality is one of the core pillars of the CSRD and guides everything a company must report. It ensures that sustainability reporting is not one-sided. Instead, organisations must look at sustainability from two directions to understand both their internal financial exposure and their external real-world impacts.

4.1 Impact materiality: 

The second perspective is impact materiality, also called “inside-out.” Here, companies assess how their own activities affect people, communities and the environment. This includes emissions across the value chain, labour practices, biodiversity loss, pollution and other impacts connected to the business model. If a company’s operations significantly influence society or the environment, those impacts must be disclosed.

4.2 Financial materiality: 

The first perspective is financial materiality, also known as “outside-in.” This means companies must evaluate how environmental or social issues could affect their business performance, strategy, revenue or long-term stability. For example, rising carbon prices, supply-chain disruptions caused by extreme weather, or workforce safety risks may have a direct financial effect on the company. If these issues could influence financial outcomes, they must be reported.

Overall, the timeline means most businesses will prepare CSRD reports using data from financial years between 2024 and 2028. Meeting EU CSRD reporting requirements takes time because each reporting wave demands reliable ESG data, clear documentation and processes that are fully audit-ready. Early preparation helps organisations avoid gaps and ensures they are ready for their first CSRD submission.

EU-Specific CSRD Requirements

The EU CSRD reporting requirements, which means it applies directly to EU companies and must be written into national law by each member state. It also applies to non-EU companies that generate significant turnover in the EU and operate through large EU branches or subsidiaries. This ensures that both EU and non-EU businesses operating in Europe follow the same reporting standards.

Companies must publish their sustainability information in a digital, machine-readable format. Reports must follow the ESEF/XHTML structure and use digital tagging so data can be uploaded into the European Single Access Point. This format allows investors, regulators and the public to compare data more easily across companies.

EU member states are responsible for defining penalties and enforcement. They must also ensure that companies follow ESRS, obtain external assurance and integrate sustainability disclosures into their management reports. This creates a uniform, standardised reporting system across the EU that aligns financial and sustainability performance.

Why CSRD Compliance Depends on Reliable Reporting Software

Understanding CSRD meaning is the first step, and meeting CSRD reporting requirements requires accuracy, structure and reliable systems. Breathe ESG simplifies this entire process by replacing manual spreadsheets with a unified, automated sustainability platform. It centralises all ESG data, automates Scope 1, Scope 2 and Scope 3 emission calculations and maps disclosures directly to CSRD, GRI and BRSR frameworks, giving companies full confidence in their reporting.

The ESG reporting platform maintains audit-ready logs, version-controlled documents and real-time anomaly detection to prevent errors before assurance. With structured workflows, approval trails and embedded governance tools, Breathe ESG ensures every disclosure is accurate, consistent and fully aligned with ESRS standards.

Book a FREE demo and explore how to streamline your CSRD reporting today.

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FAQS

What is the timeline for CSRD reporting?

The CSRD reporting timeline follows a phased schedule from 2025 to 2029. Companies already reporting under NFRD submit their first CSRD reports in 2025 based on FY 2024 data. Large companies not previously covered follow in 2028, while listed SMEs and non-EU companies report in 2029. Most organisations need to begin preparing CSRD reporting requirements now, as the timeline requires collecting data from earlier financial years.

Is the CSRD mandatory?

Yes, the CSRD is mandatory for all organisations that fall under its scope. This includes large EU companies, listed SMEs and non-EU companies with significant EU turnover. If a company meets the size or revenue thresholds, it must follow CSRD reporting requirements using the ESRS framework. Member states enforce compliance, and penalties apply for incomplete or missing sustainability disclosures.

What are the 7 principles of sustainability reporting?

The commonly accepted principles of sustainability reporting include relevance, accuracy, clarity, comparability, completeness, consistency and balance. These principles guide how companies should prepare and present their ESG information. Under CSRD meaning and ESRS standards, these principles help ensure that sustainability data is transparent, reliable and useful for stakeholders and auditors.

What are the key elements of CSRD?

The key elements of CSRD reporting include double materiality, ESRS-aligned disclosures, value-chain reporting, digital tagging, and mandatory third-party assurance. Companies must report detailed environmental, social and governance data and integrate sustainability information into their management reports. These CSRD requirements create a structured, audit-ready framework that improves transparency and accountability across organisations.