What is the CSRD? A guide to the EU's sustainability directive

The CSRD (Corporate Sustainability Reporting Directive) is the EU's directive for sustainability reporting. It replaces the earlier NFRD directive and requires the largest companies to report their climate and sustainability impact on an ongoing basis, following a standardised framework (ESRS). For many companies, this is the first time sustainability data must be collected, quality-assured and reported with the same rigour as financial data.

Through the Omnibus I amending directive, in force since March 2026, the EU has also raised the thresholds and pushed back parts of the timeline. Fewer companies are covered directly — but the requirements for those in scope remain extensive.

What does the CSRD mean in practice?

• Voluntary → mandatory: Sustainability reporting becomes a legal requirement, not a choice.
• More data points: Full ESRS reporting requires a broad set of sustainability indicators.
• External assurance required: The report must be reviewed by an independent auditor (limited assurance).
• Double materiality assessment required: Companies must analyse both how sustainability issues affect the business and how the business affects the world around it.

Who is covered by the CSRD?

After the Omnibus amendments, the CSRD covers companies with more than 1,000 employees and a net turnover above €450 million. The largest listed companies are already reporting (from financial year 2024), while other large companies above the thresholds report for the first time in 2028, covering financial year 2027. Listed SMEs have been removed from the directive — for them, the voluntary VSME standard is the way forward.

Read our detailed guide: Who is covered by the CSRD? →

Want to understand the legislation behind the requirements? Read The CSRD directive explained.

Dive deeper into the CSRD

• Who is covered by the CSRD? – thresholds after Omnibus and a quick test
• Double materiality assessment under the CSRD – step-by-step guide
• The CSRD directive explained – background, requirements and timeline
• How to report under the CSRD – practical reporting guide

How Wellfish helps you with the CSRD

Wellfish automates data collection and interprets your sustainability data with AI, so you always have quality-assured monthly data ready for reporting – without manual spreadsheet work. We take you from chaos to control with a structured CSRD process that saves time and reduces the risk of errors. Read more about how Wellfish handles CSRD reporting →