RapidCSRD

What is CSRD? A Practical Guide for SMEs and Suppliers

Everything you need to know about the EU's Corporate Sustainability Reporting Directive and why it matters for your business

What is CSRD?

The Corporate Sustainability Reporting Directive (CSRD) is the European Union's new mandatory sustainability reporting requirement. It replaces the Non-Financial Reporting Directive (NFRD) and significantly expands the scope of companies that must report on their environmental, social, and governance (ESG) practices.

CSRD requires companies to disclose detailed information about their sustainability impacts, risks, and opportunities in a standardized format that follows the European Sustainability Reporting Standards (ESRS).

Who Needs to Comply?

CSRD applies to companies that meet at least two of these criteria:

  • 250+ employees (on average over the financial year)
  • €40M+ net turnover (annual revenue)
  • €20M+ balance sheet total (total assets)

Additionally, all companies listed on EU-regulated markets (except micro-enterprises) must comply, regardless of size.

Deadlines and Thresholds

2025 Reporting

Large companies already subject to NFRD must report for financial years starting on or after January 1, 2024 (reports published in 2025).

2026 Reporting

Large companies not previously subject to NFRD must report for financial years starting on or after January 1, 2025 (reports published in 2026).

2027 Reporting

Listed SMEs and small and medium-sized enterprises must report for financial years starting on or after January 1, 2026 (reports published in 2027).

2029 Reporting

Non-EU companies with significant EU operations (€150M+ net turnover in EU) must report for financial years starting on or after January 1, 2028.

Why Suppliers Must Care: Buyers Are Demanding Data

87% of large EU companies now require sustainability reports from suppliers

Even if your company doesn't meet CSRD thresholds directly, your customers likely do—and they're passing compliance requirements down the supply chain.

Large companies subject to CSRD must report on their value chain impacts, which includes their suppliers. This means:

  • Procurement teams are requesting sustainability data as part of supplier qualification processes
  • Contracts are being lost to competitors who can provide CSRD-compliant documentation
  • RFPs increasingly include ESG requirements—72% of procurement requests now include sustainability criteria
  • Existing contracts may require updates to include sustainability reporting obligations

What Needs to Be Reported?

CSRD requires companies to report on a wide range of sustainability topics, organized into five main areas:

Environmental

  • • Climate change mitigation and adaptation
  • • Pollution (air, water, soil)
  • • Water and marine resources
  • • Biodiversity and ecosystems
  • • Resource use and circular economy

Social

  • • Own workforce (working conditions, diversity)
  • • Workers in the value chain
  • • Affected communities
  • • Consumers and end-users

Governance

  • • Business conduct and ethics
  • • Risk management
  • • Internal controls

Additional Requirements

  • • Double materiality assessment
  • • Value chain reporting
  • • Forward-looking information
  • • Third-party assurance

Download the 2026 CSRD Readiness Checklist (PDF)

Get a comprehensive checklist to assess your CSRD readiness and identify gaps before deadlines approach.

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