The Corporate Sustainability Reporting Directive (CSRD) is transforming sustainability reporting and ESG compliance for companies operating in the European Union (EU). Many organisations may be subject to mandatory sustainability disclosures even if they do not meet the thresholds independently, particularly parent companies whose subsidiaries collectively meet CSRD criteria. 

Key Regulatory Scope and Timeline 

The directive applies to companies meeting at least two of the following criteria: 

• Net turnover exceeding €50 million 
• Total assets exceeding €20 million 
• More than 250 employees 

The Directive applies to large undertaking and large groups with activity in the EU (EU and Non-EU registered companies), including:  

• Parent companies 
• Holding companies 
• Intermediate entities  

Implementation Phases 

Double Materiality Assessment 

A core CSRD requirement evaluating both financial and environmental/social impacts. CSRD significantly expands corporate sustainability disclosure requirements, covering more companies and increasing transparency in ESG reporting. 

Other key regulations 

Beyond CSRD, several other key regulations shape sustainability reporting in the EU: 

• Corporate Sustainability Due Diligence Directive (CSDDD): Establishes due diligence obligations for companies regarding human rights and environmental impacts across their value chains.: Establishes due diligence obligations for companies regarding human rights and environmental impacts across their value chains. 
• Sustainable Finance Disclosure Regulation (SFDR): Applies to financial institutions and investment funds, ensuring transparency in sustainable investments. 
• EU Taxonomy: Establishes a classification system for environmentally sustainable economic activities. 

You must also review local regulations across the countries where you are located, as states may impose additional sustainability reporting or due diligence requirements beyond these EU-wide directives. 

Complying with CSRD: How Bolder can help  

To ensure your organisation is prepared for CSRD regulatory obligations, we recommend the following steps: 

1. Assess Your Business: Identify whether your company, subsidiaries or investment structures fall within CSRD’s reporting scope. 
2. Engage with Key Stakeholders: If your company is affected, arrange an internal review and a consultation with our CSRD compliance experts. 
3. Plan Your ESG Strategy: We will analyse your sustainability reporting obligations, identify any compliance gaps and support you in implementing a customised ESG roadmap. 

Please be aware of these regulations and take action now. Even if you are not obliged to comply this year, you may be required to do so in the next year or the one after. Starting early will ensure a smoother transition and prevent last-minute challenges. Early CSRD preparation is key to avoiding compliance risks, penalties and reputational damage. 

If you have any questions or need assistance, contact us today, so we can design a compliance roadmap together.

Bolder Group does not provide financial, tax or legal advice and the information contained herein is meant for general information purposes only. We strongly recommend that before acting on any of the information contained herein, readers should consult with their professional advisers. The Bolder Group accepts no liability for any errors or omissions in the information, or the consequences resulting from any action taken by a reader based on the information provided herein.

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