CSRD

The CSRD (Corporate Sustainability Reporting Directive) is an EU directive that significantly expands the requirements for corporate sustainability reporting. This means that significantly more companies must report in detail on their impact on the environment, social conditions, and corporate governance—in accordance with a common standard (ESRS) and with the same level of credibility and scrutiny as financial reporting.

What does the CSRD require of you?

The CSRD raises the bar for sustainability reporting in several ways:

  • Reporting in accordance with ESRS: Sustainability information must comply with European standards and be comparable across companies.
  • Double materiality: Companies must report both how sustainability issues affect the company and how the company affects the outside world.
  • Review: The sustainability information must be verified by an independent party, much like a financial audit.
  • Integrated Report: The information must be included in the management report and linked to corporate governance.

Common Challenges with the CSRD

  • Data Collection: Collecting reliable data—especially within the supply chain—is often the biggest practical challenge.
  • Skills gap: Few companies have the internal capacity to handle both ESRS and the data collection and review process.
  • Connection to financial reporting: Sustainability data must meet the same standards of quality and traceability as financial figures.
  • Integration into risk management: The materiality analysis must be linked to the company's risks and strategy; it must not become an isolated exercise.

How an Interim CFO Can Ensure Accurate Reporting

Sustainability reporting is currently driving a clear interim need in the field of economics and finance.

  • Bridging Economics and Sustainability: One interim CFO can integrate sustainability reporting into the financial process and ensure data quality.
  • Project Management for the Implementation: One interim chief financial officer can manage the CSRD project from the gap analysis through to the final report.
  • Preparing for the audit: Experience in preparing documentation that can withstand independent verification.
  • Quick Start: Interim Search's process ensures that you have the right talent in place within 48 hours.

Frequently Asked Questions About CSRD

Which companies are covered by the CSRD?

The CSRD will be phased in over time and will gradually apply to large companies as well as listed small and medium-sized enterprises, with certain exceptions and thresholds regarding the number of employees, revenue, and total assets. Furthermore, the timeline and scope of application have been adjusted, so it is important to assess whether and when you will be subject to these requirements.

What is ESRS?

The ESRS (European Sustainability Reporting Standards) are the detailed standards that specify what companies must report and how they must do so under the CSRD. They cover environmental, social, and governance issues and aim to make sustainability information comparable across companies.

What does "double materiality" mean?

Dual materiality means that a company must report from two perspectives: first, how sustainability issues affect the company’s financial position and performance (financial materiality); and second, how the company’s operations affect people and the environment (impact materiality).

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