{"id":4969,"date":"2025-02-03T14:50:52","date_gmt":"2025-02-03T14:50:52","guid":{"rendered":"https:\/\/palmer-consulting.com\/addressing-the-implementation-of-csrd-standards\/"},"modified":"2025-02-03T14:50:52","modified_gmt":"2025-02-03T14:50:52","slug":"addressing-the-implementation-of-csrd-standards","status":"publish","type":"post","link":"https:\/\/palmer-consulting.com\/en\/addressing-the-implementation-of-csrd-standards\/","title":{"rendered":"Addressing the implementation of CSRD standards"},"content":{"rendered":"

1. The legal environment for CSRD :<\/h2>\n

Since January 2024, the Non Financial Reporting Directive<\/strong>(NFRD<\/a>) has introduced the European Corporate Sustainability Reporting Directive<\/strong>(CSRD<\/a>). The introduction of this standard is accompanied by a standardized reference framework called the European Sustainability Reporting Standards<\/strong> (ESRS). <\/p>\n

With this new directive, the European Union aims to ensure that companies provide reliable and comparable information on their environmental, social and governance impacts, in line with the work carried out by theEuropean Financial Reporting Advisory Group<\/strong>(EFRAG<\/a>). In addition, the introduction of ESRS standards aims to harmonize the extra-financial reporting that the companies concerned will have to publish. <\/p>\n

Today, CSRD meets four major objectives that complement each other in detailing the environmental, societal and governance impact of companies. The CSRD is in line with the 2050 goal of carbon neutrality set by the Paris Agreement<\/strong>. In this way, the CSRD makes it possible to standardize European climate-related standards, thereby increasing the transparency and comparability of corporate reporting. Last but not least, this reporting obliges companies to integrate ESG criteria into their decision-making processes. <\/p>\n

The aim of these elements is to improve the collection, accuracy and reliability of the information provided by the companies concerned.<\/p>\n

 <\/p>\n

\"implementation<\/p>\n

1.1 A gradual implementation schedule<\/h4>\n

Now transposed into French law, the phased implementation of the CSRD and related standards began in January 2024 and will end in 2029. It will apply to European listed companies, listed SMEs and non-European companies with at least one branch in the euro zone. <\/p>\n

Implementation schedule 2024-2029 :<\/strong><\/p>\n\n\n\n\n\n\n\n\n
Company typology<\/th>\nReference year<\/th>\nInitial reporting<\/th>\n<\/tr>\n<\/thead>\n
Companies subject to NFRD<\/a>:<\/p>\n
    \n
  • +500 employees<\/li>\n
  • Review > 2<\/span>5<\/span>M\u20ac or sales > <\/span>5<\/span>0M\u20ac<\/span><\/span><\/li>\n<\/ul>\n<\/td>\n
2024<\/td>\n2025<\/td>\n<\/tr>\n
European companies : <\/span><\/span><\/p>\n
    \n
  • 250+ employees<\/span><\/li>\n
  • Review > 2<\/span>5<\/span>M\u20ac or sales > <\/span>5<\/span>0M\u20ac<\/span><\/span><\/li>\n
  • Any non-European company operating in the EU and meeting the above criteria<\/span><\/span> <\/span><\/li>\n<\/ul>\n<\/td>\n
2025<\/td>\n2026<\/td>\n<\/tr>\n
SMEs listed on a European market (except micro-enterprises not exceeding 2 <\/span>the following criteria (10 employees ; <\/span>4<\/span>50K\u20ac balance sheet ; <\/span>9<\/span>00K\u20ac sales)<\/span><\/span><\/td>\n2026<\/td>\n2027<\/td>\n<\/tr>\n
Other large non-European companies with European sales > \u20ac150M <\/span>sales in <\/span>EU<\/span> over the last 2 years<\/span><\/span>
\nAND<\/strong>
\nA subsidiary in the EU that meets the criteria of a large company or is a listed SME with more than 250 employees.<\/span><\/span>
\nOR<\/strong>
\nU<\/span>branch in the EU with net sales in excess of \u20ac50m.<\/span><\/span><\/td>\n		2028<\/td>\n2029<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

1.2 The concept of double materiality, the cornerstone of the CSRD directive<\/h4>\n

With the introduction of the CSRD directive, companies will have to carry out a double analysis of all ESG criteria, known as double materiality<\/a>. The aim is to identify the impact of company decisions on all stakeholders. Double materiality is presented as follows: <\/p>\n