As an entrepreneur, you are increasingly faced with new regulations around sustainability and corporate social responsibility. One of the most important developments in this area is the CSRD, or Corporate Sustainability Reporting Directive.
This European directive changes the way companies have to report on sustainability. But what exactly does CSRD mean? And what does it mean concretely for you as an entrepreneur?
What is CSRD?
The CSRD is a new European directive that requires companies to report on their impact on people and the environment. Consider topics such as carbon emissions, energy consumption, working conditions, diversity and transparency in the chain.
This directive replaces the existing Non-Financial Reporting Directive (NFRD) and greatly expands the scope and depth of sustainability reporting.
Who does the CSRD apply to?
CSRD goes into effect incrementally:
- From 2024: Large listed companies already covered by the NFRD.
- From 2025: Large companies with more than 250 employees, €40 million turnover or €20 million balance sheet total.
- From 2026: Listed SMEs too (with some exceptions).
Even if you are not directly required to report (yet), chances are your customer or supplier is. So they will ask you to provide sustainability information. The CSRD therefore affects the entire chain – including SMEs.
What should you report?
The CSRD requires you to report on so-called ESG (Environmental, Social & Governance) themes.
Here, the principle of double materiality applies: you have to describe how your company has an impact on people and the environment as well as how sustainability issues affect your company.
Specifically, you can think of:
- Energy and resource use
- CO₂-footprint
- Working conditions and diversity
- Risk management and governance
- Supply chain transparency
What does this mean for you?
The CSRD calls for more than a few paragraphs in your annual report. It is about measurable data, demonstrable policies and transparent reporting.
That may sound overwhelming, especially if sustainability is not (yet) an integral part of your operations. But this is precisely where an opportunity also lies: those who start now will soon be ahead.
Trifact365: your partner in sustainability and compliance
Good preparation starts with insight. Trifact365 helps companies collect, structure and transfer financial data in an efficient and reliable way.
With smart tools and practical support, Trifact365 ensures that your financial processes work efficiently, making you ready for new CSRD developments faster – whether you are already subject to reporting requirements, or not yet.
CSRD is not a temporary hype, but a structural change in how companies operate and report. Entrepreneurs who take steps towards transparency and sustainability now are building a future-proof organisation.
With Trifact365’s support, that road becomes a lot clearer and more feasible.
