With the entry into force of the CSRD (Corporate Sustainability Reporting Directive), nearly 50,000 companies in Europe will be subject to non-financial reporting from 2025, compared to only 12,000 under the previous directive (source: European Commission, 2023).
This figure is impressive, and for good reason: the scope of this European directive is much broader than that of the NFRD (Non-Financial Reporting Directive).
But then, who is affected and how can this new regulatory requirement be anticipated without breaking into a cold sweat?
The CSRD, which came into force on January 1, 2024, aims to harmonize and strengthen corporate transparency on environmental, social, and governance (ESG) impacts. Gone are the days when only large listed companies had to report: now, any company with more than 250 employees or with a turnover of more than €40 million is affected.
The goal is simple (even if its implementation is much less so): to enable stakeholders, investors, and citizens to better assess the sustainability of companies. In other words, it is no longer just a matter of "doing good," but also of proving it with verified and structured data.
And this is not just a passing fad: according to a KPMG study (2023), 81% of European executives believe that CSRD requirements will have a major impact on their strategy by 2026. In short, even the most skeptical will have to get on board.
The scope of application of the CSRD is broad, and the directive applies in several waves:
If you thought you could escape because you are not a multinational corporation, it's time to revise your plans. Even many mid-sized companies will have to play the sustainability reporting game, or risk seeing their reputation (and sometimes their access to financing) affected.
First, it is important to understand that the CSRD is not just a "simple CSR report." It involves producing an auditable document that meets strict European standards (ESRS – European Sustainability Reporting Standards) and is integrated into the management report.
Here are some key steps to get you started:
Behind the CSRD requirements lies a real opportunity: to rethink your business strategy around sustainability, attract new talent, and differentiate yourself in the market.
For HR and finance teams that need to articulate social data within the CSRD report, Quarksup offers tailored solutions. Thanks to its Absences module, it becomes easier to track and structure social data (absenteeism, well-being, quality of life at work), which are essential indicators in the social section of CSRD reporting.
In addition, the Hello Payroll module provides a clear and reliable overview of payroll, compensation, and social security contributions, information that will contribute to the expected transparency regarding social and payroll practices.
So, if the CSRD still seems like an insurmountable mountain to you, know that with the right tools and tailored support, it can become a lever for transformation rather than a mere regulatory constraint.
