The phased implementation timeline of the Corporate Sustainability Reporting Directive (CSRD)

Early preparation will not only allow businesses to better understand the evolving requirements but also provide time to address potential challenges and ensure a smoother transition. Being proactive will allow your organisation to streamline data collection, integrate necessary systems and develop strategies to meet compliance.

What is CSRD?

CSRD is a significant EU directive designed to improve corporate transparency and accountability in sustainability reporting which impacts UK companies trading in Europe. It transforms the voluntary Environmental, Social and Governance (ESG) framework into mandatory, legally binding regulations, requiring detailed and audited sustainability reports. Building on the Non-Financial Reporting Directive (NFRD), CSRD meets the growing demand for more accurate, reliable and comprehensive sustainability data.

To facilitate compliance with these new reporting requirements, the European Sustainability Reporting Standards (ESRS) have been developed. This framework provides detailed guidelines on how companies must report their ESG performance, ensuring consistency across organisations.

Phased implementation timeline of CSRD

• 2023: Adoption of the European Sustainability Reporting Standards (ESRS), offering structured guidelines for CSRD compliance.

2024-2028 progressive CSRD implementation milestones:

• 2024:Reporting begins for listed companies with over 500 employees (companies that previously had to comply with NFRD, which CSRD replaces), with publication in 2025 in accordance with ESRS.
• 2025:Large listed and unlisted companies meeting at least two criteria: 250+ employees, €25M total assets, or €50M turnover, with publication in 2026 in compliance with ESRS.
• 2026:Reporting starts for listed SMEs (excluding microenterprises) with transferable securities admitted to trading on an EU-regulated market, with publication in 2027 in line with ESRS.
• 2028: This includes large EU subsidiaries of non-European companies with €150M+ EU turnover (over two consecutive years) and EU branches with €40M+ turnover (in the preceding financial year).

Note: The European Commission’s deadline to adopt the ESRS for certain third-country companies has been extended to June 30th 2026, without impacting existing reporting schedules.

Comprehensive ESG reporting under CSRD  

Environmental

Organisations must report on environmental issues such as carbon emissions, energy consumption, waste management and the use of natural resources. They must also disclose the financial impact of climate-related risks.

Social

Requires reporting on employment practices, working conditions, inclusion and diversity efforts, health and safety, supply chain management and community engagement through charitable activities and local partnerships.

Governance

Organisations must disclose governance structures and practices such as board composition including diversity in gender, ethnicity and expertise, executive compensation and risk management.

Benefits of CSRD in your organisation

If your organisation is looking to achieve long-term sustainability and adopt better reporting practices, the CSRD will be an essential tool for achieving those goals. Compliance will streamline reporting processes, boost accountability, and enhance alignment with ESG standards, making it easier to meet stakeholder expectations and build trust.

We understand the complexities of CSRD compliance and offer professional solutions and guidance to help your company manage and meet reporting standards to drive sustainable growth. Turn compliance challenges into opportunities – contact our team to learn how we can help you navigate the Corporate Sustainability Reporting Directive.