"Companies subject to CSRD" is one of the fastest-growing search queries.
The new European directive changes the game and requires thousands of companies to report their ESG impact with clear and verifiable data.
More than 50,000 companies will be affected.
The regulation includes all listed companies (except micro-enterprises) and large ones that exceed two of the following three thresholds: 250 employees, €25 million in assets, or €50 million in revenue.
It also extends to non-European companies that generate more than €150 million in the EU and have subsidiaries in the region.
This article explains who needs to report, what the CSRD entails, and how to start preparing your company without wasting time or money.
The CSRD (Corporate Sustainability Reporting Directive) is the new European directive that requires thousands of companies to report their sustainability impact.
It is not a suggestion, it is a regulation.
Its goal is to make ESG information as rigorous and verifiable as financial data, with common and comparable standards across the European Union.
The CSRD replaces the previous NFRD, which fell short. Very few companies reported, and the data was generic or incomplete.
With the new directive, transparency is no longer optional. Europe wants useful information for investors, banks, suppliers, and clients. And it wants it now.
This is not about image, it’s about business. If we don’t know how to measure our impact, we can’t manage it or compete in an increasingly demanding market.
The CSRD’s objective is clear: for companies to integrate sustainability into their strategy, operations, and financial decisions.
We’re not only talking about large groups or industrial sectors. The CSRD applies to a broad spectrum of companies, both inside and outside the EU, if they meet certain criteria.
From listed companies to large non-listed ones, including foreign companies with significant operations in Europe.
Since January 2024, companies already subject to the NFRD are required to report: mainly large listed companies, financial entities, and insurers.
They must submit their first CSRD-compliant report in 2025, covering data from the 2024 fiscal year.
Starting in 2025, all large companies that exceed certain thresholds must report, even if they are not listed.
In 2026, listed SMEs will join. They will have somewhat more flexibility, but must also report under the sustainability criteria defined by the EU.
A company is considered obligated if it meets at least two of these three criteria:
More than 250 employees.
More than €25 million in assets.
Over €50 million in annual revenue.
Also included are non-European companies that bill more than €150 million in the EU and have significant subsidiaries within the territory.
Can We Relax? Not Quite.
This is no longer a trend: it is a mandatory requirement shaping the future of the market.
Complying with the CSRD is not just about filling out a form. You need to have real, complete, and auditable data.
And yes, it must be presented with the same level of detail as financial data.
It’s not enough to say you’re doing something for the impact. Now you have to prove it with data, methodologies, and clear criteria.
The first step is to report under the European Sustainability Reporting Standards (ESRS). These are the common frameworks defined by the EU.
Companies must explain how they impact and are impacted by environmental, social, and governance factors.
All with measurable indicators and within sustainable finance frameworks that ensure comparability and rigor.
Here’s the tricky part. The hard part is not the final report, but gathering all ESG information, validating it, and linking it to each intended use.
We’re talking about scattered data, from many internal and external sources. Without digitization, this is unmanageable.
If you fail to comply, you may face sanctions, lost contracts, or exclusion from tenders. In addition, more and more banks and investors demand ESG data to continue working with you.
This is not a threat. It’s the reality. If you’re not up to date, you’re out of the game.
Starting early gives you time to organize your data, adjust processes, and avoid mistakes. Those who are prepared, take the lead.
Additionally, you can use this information to improve efficiency and reduce costs, not just to report out of obligation.
Companies that already measure and manage their ESG impact make better decisions, win tenders, and enter more markets.
Falling behind means losing opportunities and visibility. And that, today, costs money.
More and more funds, banks, and insurers ask for ESG data to offer favorable conditions. Having that data ready opens doors.
Also, a company that understands and controls its ESG risks is more resilient and less vulnerable to regulatory or market changes.
The most qualified profiles want to work at companies that don’t improvise. And investors want to know where they’re putting their money.
Having your ESG information clear and organized conveys trust, leadership, and a future-oriented vision. Can we afford not to be in that picture? Hardly.
Adapting to the CSRD is not impossible, but there are obstacles that hold many companies back. It’s not just about reporting, but about having clear, connected, and structured data.
These are the three most frequent challenges we face when helping companies prepare.
Most companies don’t know where their ESG data is, or aren’t even sure if they have it.
Much of it is in Excel sheets, emails, or scattered across departments. And without visibility, compliance is not possible.
ESG is not just the responsibility of the sustainability or legal team. It involves operations, procurement, HR, finance, logistics…
When each department works in isolation, chaos is guaranteed. And the CSRD demands a cross-functional and connected approach.
Many teams are unclear about what the CSRD requires or how to structure the report.
They confuse terms, mix frameworks, and waste time trying to interpret technical documents.
How to choose the right methodology? By having a clear vision of what you’re obligated to do and which data you need.
At Dcycle, we’re not auditors or consultants. We’re a solution for companies that need to organize, validate, and use their ESG data to comply with regulations and gain efficiency.
We’ve spent years simplifying this process for all types of companies. And we’ve seen what works and what doesn’t.
Trying to do everything manually is a waste of time. What truly makes a difference is automating data collection and connecting it to the different frameworks: CSRD, NFRD, ISOs, Science Based Targets initiative (SBTi), or whatever applies.
If your ESG data is digitized, you can respond quickly, save resources, and reduce errors.
Start by knowing what you already have: map out the ESG data you’re already managing.
Involve all departments from the beginning, don’t leave it all to sustainability.
Don’t get lost in the frameworks: use a solution that translates them and tells you what you need.
Don’t leave it for the last minute: the sooner you start, the easier it will be to scale.
The CSRD is not the end of the world, but it is a wake-up call. If we measure properly and have clear data, we can turn this obligation into a real advantage.
At Dcycle, we’re not auditors or consultants. We’re a solution for companies that need order and clarity in everything related to their ESG data.
We take care of capturing, organizing, and connecting your information so you can comply with the CSRD without wasting time or energy.
We connect to your systems and automatically collect the relevant data. Everything is centralized, validated, and ready to use.
No more chasing Excel files or asking each department for data. Everything is in one place and up to date.
Once your data is organized, you can use it for all your ESG use cases. Not just to comply, but to make better decisions.
Your effort is multiplied: a single system that works for everything the market and regulations demand.
Automating data collection and reporting not only reduces the margin for error, it also frees you from repetitive tasks and gives you full control over the process.
With Dcycle, you have reliable data, ready for audits and to demonstrate your impact clearly. Can we relax? Much more than before.
The CSRD has been in effect since January 2023. The first obligated companies are those that were already under the previous NFRD.
In 2025 and 2026, more groups are added, including large non-listed companies and listed SMEs.
The CSRD replaces the NFRD, expanding the number of obligated companies and requiring a much higher level of detail.
Generic statements are no longer enough: you must present verified and structured data.
The consequences can be serious: fines, loss of access to financing, exclusion from tenders, or loss of contracts. It’s not optional, it’s a legal obligation with direct impact on the business.
The ESRS (European Sustainability Reporting Standards) are the technical framework that defines how to report under the CSRD. They tell you which indicators you must present and how to structure your ESG information.
If you meet at least two of the following three criteria, you are in: more than 250 employees, more than €25 million in assets, or more than €50 million in annual revenue.
Also if you generate over €150 million in the EU and have a subsidiary here. Do you meet any of these? Then it’s time to get ready.
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