European Union: CSRD and ESRS

Mandatory double materiality sustainability reporting for 27 EU member states.
Scope: 50,000+ companies (phased), sector-agnostic and sector-specific standards[1][5][7].
Companies Covered
50,000+
Large, listed SMEs, non-EU with EU ops (2025)
Member States
27
EU-wide, phased national transposition[5]
Double Materiality
Required
Financial + impact materiality[1][5][7]
Assurance
Mandatory
Limited assurance for sustainability data[5]
CSRD Phased Application Timeline
WaveCompaniesFirst Reporting YearReport DueStatus (2025)
1Large listed companies (NFRD scope)20242025Active
2Other large companies (>250 staff, >€40M turnover, >€20M assets)2025 (proposed delay: 2027)2026 (proposed delay: 2028)Pending
3Listed SMEs, small credit institutions, captive insurers2026 (proposed delay: 2028)2027 (proposed delay: 2029)Pending
4Non-EU companies with >€150M EU turnover20282029Pending
Orange: Delays per "Stop-the-Clock" directive (2025)[2][4][6][7]
European Sustainability Reporting Standards (ESRS)
TypeScopeExamplesNotes
Sector-agnosticAll companies in scopeGeneral disclosures, climate, biodiversity, workforce, governanceApplies to all, covers double materiality
Sector-specificHigh-impact sectorsEnergy, agriculture, textiles, mining, financePhased in, under revision as of 2025
Entity-specificUnique company impactsMaterial issues not in other standardsOptional, for unique risks/opportunities
CSRD Coverage by Company Type (2025, est.)
Estimated number of companies in each CSRD reporting wave (2025).
CSRD/ESRS Integration and Influence
  • Alignment: GRI, TCFD, ISSB, EU Taxonomy, SFDR
  • Materiality: Double (financial + impact)
  • Assurance: Mandatory limited assurance (reasonable assurance under review)
  • Topics: Climate, biodiversity, water, workforce, anti-corruption, governance
  • Phased simplification: ESRS revision and reporting scope reduction in 2025-2026[7][8]

About the CSRD and ESRS

The EU’s CSRD and ESRS mandate standardized, double materiality sustainability reporting for 50,000+ companies, including large firms, listed SMEs, and non-EU companies with major EU operations[1][5][7]. The framework requires disclosures on both financial and impact materiality, subject to mandatory assurance, and is being phased in through 2028 due to recent regulatory delays[2][4][6][7]. ESRS standards are modular, covering general, sector-specific, and entity-specific topics, and are being revised in 2025-2026 to simplify requirements and reduce reporting burdens, especially for SMEs[7][8].

Note: All data reflects official EU, EFRAG, and regulatory updates as of May 2025.

European Union - CSRD & ESRS (Corporate Sustainability Reporting Directive & European Sustainability Reporting Standards)