Companies must comply with the requirements of the CSRD if they are large in size, meaning that they meet two of the following three criteria: more than €40 million turnover, over €20 million balance sheet total and/or 250 FTEs. Although small and medium-sized enterprises are exempted from the CSRD at least until the financial year 2026, they will still have to deal with demands from their CSRD-compliant supply chain partners.

Following its consultation round, the European Union has adjusted the CSRD in a number of areas. The most important adjustment is the postponement of the implementation date for large companies from 2023 to 2025. This gives these companies two extra years to prepare for the substantial consequences of the CSRD. This creates room for companies to develop and implement a sound ESG strategy, identify and monitor ESG risks and report ESG performance. This ensures compliance with the CSRD and enables companies to properly manage ESG risks and opportunities.

It can take a lot of time to go through this process. For example, to establish materiality you need to identify the wishes of your stakeholders, analyse external risks and determine your impact on society and the environment. Therefore, starting with a gap analysis as soon as possible to gain insight into the required actions is advised. RSM will gladly support you in the process to comply with the CSRD.