--- title: EU CSRD (Directive 2022/2464) – Sustainability Reporting 2026, ESRS Standards slug: eu-csrd-2022-2464-sustainability-reporting topic: general lang: en valid_from: 2024-01-01 valid_to: null last_reviewed: 2026-07-02 status: current authority_level: A license: CC-BY-4.0 url: https://nexvyra.de/en/fakten/eu-csrd-2022-2464-sustainability-reporting.md wikidata_subjects: [Q116054734] de_version: https://nexvyra.de/fakten/csrd-nachhaltigkeitsbericht-2026.html --- # EU CSRD (Directive 2022/2464) – Sustainability Reporting 2026, ESRS Standards ## Short Answer The **Corporate Sustainability Reporting Directive (CSRD, Directive (EU) 2022/2464)** requires undertakings to prepare **standardised sustainability reporting** in accordance with the **European Sustainability Reporting Standards (ESRS)**. It massively expands the previous NFRD (Non-Financial Reporting Directive): instead of ~11,700 undertakings, approximately **~50,000 EU undertakings** will be subject to reporting obligations. **Timeline**: capital markets-oriented undertakings report for **financial year 2024 (publication 2025)**; **large undertakings** (250+ employees + turnover > €50 million or balance sheet > €25 million) for **2025** (2026); capital markets-oriented **SMEs** for **2026** (2027) with opt-out until 2028; non-EU groups with ≥ €150 million EU turnover for **2028** (2029). The CSRD was **partially postponed and simplified through the Commission's Omnibus Package (February 2025)** — final version expected 2026 in trilogue. **German implementation**: draft CSRD Implementation Act July 2024, adoption still pending (as of July 2026). **Audit obligation**: statutory auditor (limited assurance initially, reasonable assurance planned from 2028). ## Key Facts | Item | Value | |---|---| | Legal Basis | Directive (EU) 2022/2464 of 14 December 2022 | | Implementation Standards | European Sustainability Reporting Standards (ESRS) | | Current ESRS Count | 12 cross-sector standards (2 cross-cutting + 10 thematic) | | Cross-Cutting | ESRS 1 (General Requirements), ESRS 2 (General Disclosures) | | Thematic Standards | E1-E5 (Environment), S1-S4 (Social), G1 (Governance) | | Materiality Principle | Double materiality (financial + impact) | | "Large Undertaking" Thresholds | 2 of 3: 250+ employees, > €50m turnover, > €25m balance sheet | | Capital Markets-Oriented Since 2024 (Reporting Year) | All EU-listed undertakings | | Large Undertakings Since 2025 (Reporting Year) | – (postponed in Omnibus Package Feb 2025) | | Omnibus Simplification | Reduction to ~20 % of original obligation | | SMEs (Capital Markets-Oriented) from 2026 (Reporting Year) | Opt-out possible until 2028 | | Third-Country Groups from 2028 | ≥ €150m EU net turnover + EU subsidiary/branch | | Report as Part of Management Report | Yes – ESEF format (XBRL-tagged) | | Audit by Statutory Auditor | Limited assurance (initially), reasonable assurance from 2028 (planned) | | German Implementation | CSRD Implementation Act (draft 07/2024, pending) | | Penalty for Non-Reporting | Fine per Section 334 HGB / national law (up to €10m or similar) | | EFRAG | European Financial Reporting Advisory Group (develops ESRS) | ## Scope of Application The CSRD applies in stages to four undertaking groups: 1. **Capital markets-oriented undertakings** (listed, bond issuers) — reporting year **2024**, publication 2025 2. **Large undertakings** (250+ employees + €50m turnover or €25m balance sheet) — reporting year **2025**, publication 2026 — **postponed in Omnibus to 2027** 3. **Capital markets-oriented SMEs** — reporting year **2026**, publication 2027, opt-out until 2028 4. **Non-EU groups** with ≥ €150m EU net turnover and EU subsidiary/branch — reporting year **2028**, publication 2029 **Omnibus Package 02/2025** postponed the reporting obligation for Group 2 (large undertakings) to **2027** and significantly reduced the scope. Details being finalised in 2026 trilogue. ## The 12 ESRS Standards **Cross-Cutting (General):** - **ESRS 1** – General Requirements (fundamentals, materiality assessment) - **ESRS 2** – General Disclosures (governance, strategy, impact/risk/opportunity management) **Environment:** - **ESRS E1** – Climate change (CO2 reduction targets, TCFD structure, transition plan) - **ESRS E2** – Pollution (air, water, soil, pollutants) - **ESRS E3** – Water and marine resources - **ESRS E4** – Biodiversity and ecosystems - **ESRS E5** – Circular economy, resource use, waste **Social:** - **ESRS S1** – Own workforce (working conditions, diversity, remuneration, human rights) - **ESRS S2** – Value chain workers (supplier working conditions) - **ESRS S3** – Affected communities (local impacts) - **ESRS S4** – Consumers and end users **Governance:** - **ESRS G1** – Business conduct (anti-corruption, whistleblowing, supplier relations) ## Materiality Assessment — The Heart The CSRD prescribes **double materiality**: - **Impact materiality** – What impact does the undertaking have on the environment/society? - **Financial materiality** – Which sustainability topics are financially relevant for the undertaking? A topic must be material from **one of the two** perspectives to be subject to reporting. Non-material topics may be omitted (**"comply or explain"**) — with detailed reasoning. ## What Undertakings Must Do — Practice **Step 1 — Assess applicability.** Check thresholds + timeline. Am I in Group 1, 2, 3, or 4? **Step 2 — Conduct materiality assessment.** Evaluate all 12 ESRS topics, involve stakeholders (customers, employees, NGOs, investors, suppliers). Documentation mandatory. **Step 3 — Set up data collection.** Systematic ESG data capture (emissions, water use, diversity, supplier compliance). Often: new reporting tool required. **Step 4 — Write report.** In ESRS structure, in **ESEF format (XBRL-tagged)** as part of the management report. **Step 5 — Engage statutory auditor** for limited assurance audit. **Step 6 — Publish** in commercial register + own website (management report). ## Common Mistakes - **"CSRD only applies to us from 2027."** Check Groups 1-4 carefully — capital markets-oriented = obliged since 2024. - **"We are an SME, so we're exempt."** Not if you are **capital markets-oriented** (bond issuances also count). Then subject from 2026 with opt-out until 2028. - **"We already report under GRI, that's enough."** No — GRI and ESRS overlap, but ESRS is more binding and detailed. GRI reports are **not CSRD-compliant**. - **"Materiality assessment is optional."** False — it is the baseline requirement. Without materiality assessment, no CSRD-compliant report. - **"We can simply omit non-material topics."** Nuanced — "comply or explain" requires a **detailed reasoning** why the topic is not material. Silence is not an option. - **"Third-country groups are off the hook."** False — with ≥ €150m EU turnover and EU subsidiary, subject from 2028 (Group 4). ## Sources - Directive (EU) 2022/2464 (CSRD) – EUR-Lex full text: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32022L2464 - ESRS – Delegated Regulation 2023/2772: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32023R2772 - EFRAG – ESRS Portal: https://www.efrag.org/en/sustainability-reporting - EU Commission – Omnibus Simplification 02/2025: https://finance.ec.europa.eu/publications/commission-simplifies-rules-sustainability-and-eu-investments_en - German DRSC – Sustainability Standards: https://www.drsc.de/en/ - German Ministry of Justice – CSRD Implementation Act draft: https://www.bmj.de/EN/SharedDocs/Gesetzgebungsverfahren/ ## Change Log - 2026-07-02: Initial publication (English EU wave). 12 ESRS standards documented. Timeline with Omnibus postponement from Group 2 to 2027. Double materiality principle. German implementation pending (draft 07/2024). | change_type=initial_publication field="topic_lifecycle" new="published" reviewed_by="Andreas Warkentin" ## See Also - [EU CBAM – Carbon Border Adjustment 2026](/en/fakten/eu-cbam-2023-956-carbon-border-2026.html) - [German CSRD version](https://nexvyra.de/fakten/csrd-nachhaltigkeitsbericht-2026.html) ## Status - Date: 2026-07-02 - Valid from: 2024-01-01 (first reporting year Group 1) - Status: current - Source authority: A (EUR-Lex, EFRAG, EU Commission) - Licence: CC BY 4.0