The CSRD directive explained – what applies to your company?

The CSRD (Corporate Sustainability Reporting Directive) was adopted by the EU in 2022 and is the legislation behind the sustainability reporting requirements that the largest companies now face. The directive is complemented by the European Sustainability Reporting Standards (ESRS). Through the Omnibus I amending directive, in force since 18 March 2026, the directive's scope and timeline have been adjusted.

Read a general introduction in our guide: What is the CSRD?

Background — from NFRD to CSRD and Omnibus

Before the CSRD, sustainability reporting was governed by the NFRD (Non-Financial Reporting Directive), in force since 2018. The NFRD only applied to a limited number of large listed companies — roughly 11,000 across the EU — and set no requirements for uniform reporting standards or external assurance. Sustainability reports therefore varied greatly in content, methodology and comparability.

The EU replaced the NFRD with the CSRD to strengthen data quality and make sustainability data as reliable and comparable as financial data. Originally, the CSRD extended the reporting obligation to over 50,000 companies in the EU. After extensive criticism of the regulatory burden, the EU then adopted the Omnibus I amending directive, which raises the thresholds to more than 1,000 employees and over €450 million in net turnover. The focus is now on the largest companies, while smaller companies are directed to the voluntary VSME standard.

What does the CSRD directive require?

• Reporting under a common standard (ESRS) — All companies in scope must follow the European sustainability reporting standards, ensuring comparability across companies and sectors. Simplified ESRS are being finalised during 2026.
• Double materiality assessment — Companies must determine which sustainability topics are material from both an impact perspective and a financial perspective.
• Digital, machine-readable reporting (ESEF tagging) — Sustainability information must be digitally tagged in the annual report according to the ESEF format (European Single Electronic Format), so data can be aggregated and analysed automatically.
• External assurance — The report must be reviewed by an independent auditor with limited assurance. Omnibus I removed the previously planned escalation to reasonable assurance.

The CSRD in Sweden — implementation and supervision

Sweden implemented the CSRD through changes to the Annual Accounts Act (ÅRL) and the Auditors Act, in force since 1 July 2024. Swedish companies in scope are therefore legally required to meet the CSRD requirements from their respective start dates. The Omnibus amendments are being implemented in Swedish law during 2026, following a government inquiry that delivered its final report in spring 2026.

Supervision of CSRD compliance in Sweden is handled by Finansinspektionen for listed companies, while Bolagsverket manages the registration and publication of annual reports. Auditors reviewing sustainability reports must be approved or authorised auditors with the right competence.

CSRD directive timeline

The table reflects the legal situation after Omnibus I. Swedish implementation of the amendments is ongoing during 2026.

Continue in our CSRD guide

This page is part of Wellfish's knowledge base on the CSRD. Explore the other guides in the cluster:

• What is the CSRD? A guide to the EU's sustainability directive — a general introduction
• Who is covered by the CSRD? — thresholds, phases and a quick test
• Double materiality assessment under the CSRD — step-by-step process
• How to report under the CSRD — practical reporting guide

Or go straight to our CSRD solution: Wellfish CSRD reporting →