What is the CSRD and who does it apply to?
What Investors and Clients Expect Now
What About Non-EU Companies? The CSRD Still Applies
4 key obligations imposed by the CSRD
3 common obstacles for companies
Why Dcycle is the ESG solution you need
The Corporate Sustainability Reporting Directive (CSRD) requires companies to report their environmental, social and governance (ESG) impact with the same rigor as their financials.
As of 2024, many companies will have to present more detailed and standardized reports, under common criteria defined at the European level.
The goal: real transparency, comparable data and better-informed decisions for investors and other stakeholders.
This is not just about complying with a rule. If you don’t measure, you don’t compete. And if you don’t compete, you’re out.
Throughout the article, we’ll look at what this directive entails, who it applies to, and how to prepare for what’s coming.
The CSRD (Corporate Sustainability Reporting Directive) is the European regulation that requires companies to report their ESG information with the same level of detail as their financial data.
It’s not just a change in how reporting is done. It’s a new standard that places sustainability data at the core of business.
The CSRD affects thousands of companies in Europe. It’s no longer just about large groups or multinationals.
It must be followed by companies that meet two out of these three criteria:
more than 250 employees, over €40 million in revenue, or more than €20 million in assets.
It also includes listed SMEs and non-EU companies with significant operations within the European territory.
Since January 2024, large companies already under the NFRD must comply.
In 2025, it will be the turn of large companies that were not yet reporting.
In 2026, listed small and midsize enterprises join in, with an extension option until 2028.
Can we relax? Not really. Deadlines are near, and the work of gathering and analyzing data won’t do itself.
The CSRD isn’t just about compliance, it can actually improve your business.
Until now, many businesses treated ESG like an appendix to the annual report. But the CSRD puts sustainability on the same level as financial performance, with the same rigor and expectations.
This isn’t just about checking boxes. Companies that take this seriously will be in a stronger position to attract investors, expand into regulated markets, and retain purpose-driven talent.
If you just “do the minimum,” you’ll fall behind in a market where transparency, traceability, and verifiability are becoming standard requirements for closing deals, securing funding, or even staying in supply chains.
This shift means breaking down internal silos. ESG can’t be “just the sustainability department’s job” anymore. It has to connect with procurement, finance, HR, operations...
If you don’t integrate ESG into core business functions, you’re not just risking non-compliance, you’re missing out on serious opportunities.
See the value we can bring to your team, schedule a demo.
The CSRD isn’t happening in a vacuum. It’s part of a much broader shift in how capital, clients, and partners evaluate businesses. Transparency isn’t a “nice to have” anymore—it’s the entry ticket.
Investors want data. Clients want proof. If you can’t show them your emissions, your risks, your governance practices, or your social metricsthey’ll go with someone who can.
Companies that report ESG data in line with CSRD are not just meeting compliance—they’re building trust and opening doors to:
If your data isn’t structured, traceable, and verifiable, you’re out of the conversation before it even starts.
Complying with CSRD doesn’t mean building a monster spreadsheet or drowning your team in admin.
A good ESG platform helps you centralize, automate processes, and audit your data, without starting from scratch every quarter
More importantly, it lets you move beyond compliance and start using ESG data to actually improve how you operate, cutting waste, reducing risk, and spotting opportunities.
It’s not about reporting for the sake of it. It’s about making better business decisions with the information you already have, just better organized.
The CSRD can feel overwhelming. But it doesn’t have to be a nightmare, if you approach it with a clear plan and the right tools. Here are a few practical steps to get started:
You don’t need everything to be perfect on day one. But you do need to know what ESG data you already have, who manages it, and where it lives.
This audit helps you identify gaps, overlaps, and high-risk areas. Most importantly, it gives you a clear starting point to structure your reporting in a way that’s actually useful.
Sustainability reporting isn’t a one-person job. The CSRD pulls in data from procurement, HR, legal, operations, finance…
If those departments aren’t on board from the start, you’ll hit roadblocks when it’s time to collect detailed, auditable data.
Look for an ESG solution that’s built for cross-functional collaboration, with user-friendly workflows, multi-user permissions, and built-in traceability.
We’ll say it clearly: managing your CSRD reporting in spreadsheets is a recipe for disaster. Especially when audits, changing regulations, and multiple stakeholders are in the mix.
A good ESG platform helps you centralize, automate, and audit your data, without starting from scratch every quarter.
One of the biggest misconceptions is: “If I’m not based in Europe, this won’t affect me.” The truth? It absolutely will, and probably sooner than you think.
The CSRD isn’t just for companies operating within the EU. If your business is outside Europe but has significant operations or revenues in the EU, you’re on the hook too. And we’re not just talking about having a physical office.
f you generate substantial income in the EU market or are part of the supply chain for a company that must comply, you’re involved.
This changes the game for many international businesses that saw European regulations as distant noise. Now, the sustainability benchmark is going global, even if it starts in Brussels.
Plus, many global investors are already adopting the CSRD as a standard when evaluating ESG performance, regardless of geographic boundaries.
If you’re not ready to show your ESG data clearly and consistently, you risk losing access to funding, contracts, or even loyal clients.
Bottom line: even if you’re not directly regulated today, you won’t be able to sit this one out. What starts as a European requirement quickly becomes a global expectation.
One of the hardest challenges for companies is aligning ESG with core business and financial performance. Because if your sustainability data doesn’t influence your strategy or bottom line, it’s just more corporate noise.
The CSRD forces businesses to move past vague promises and green talk. You can’t just say you care about the planet. You need to show, with numbers, how ESG connects to your revenue, risks, and resilience.
This means changing how you operate. ESG teams can no longer work in a silo. They need to collaborate directly with finance, procurement, operations, and executive leadership.
This is where the opportunity lies: if you can turn ESG data into tangible KPIs, cost savings, risk reduction, investor readiness, then it stops being a compliance task and becomes a business advantage.
That’s why more companies are turning to solutions that don’t just track metrics, but integrate sustainability with financial reporting. Because that’s where the value is. That’s when ESG moves from being “extra” to becoming essential.
Until now, talking about sustainability was optional. With the CSRD, measuring and reporting is no longer a choice, it’s an obligation.
This transforms the way we manage ESG data: it shifts from being a “nice to have” to a key decision-making tool.
ESG data becomes a strategic asset. It not only helps us comply with regulations, but also improves efficiency, enables access to funding, or helps win new clients.
The CSRD doesn’t only affect the companies that report. It also changes what investors, clients, and suppliers will demand from us.
They want real, comparable, and auditable data. They want to know where the risks and opportunities are.
And if you don’t have them, they’ll look for someone who does.
We are entering a new market logic, where measuring well can make the difference between growth and falling behind.
Let us show you what we can do, schedule a demo.
One of the lesser-known (but most complex) parts of the CSRD is how it affects subsidiaries and companies within a corporate group.
Because no, it’s not enough for the parent company to comply. If you’re part of a group that falls under the directive, your company is automatically pulled in, even if it doesn’t meet the thresholds for employees, revenue, or assets on its own.
This creates a major shift: companies that never considered ESG reporting now find themselves caught in the compliance wave of the broader group.
If your parent company is affected, you’ll need to get your ESG data, documentation, and systems in order, just as if you were reporting directly.
And it doesn’t stop there: if you're a supplier to a company that’s required to comply with CSRD, expect a knock at your door soon. Detailed data on your environmental and social impact will be requested. It’s no longer enough to say “we follow the law.” You’ll need to show, with hard data, what you’re doing, how, and what impact it’s having.
Bottom line? If you can’t prove it, the entire group might carry the risk. And that could mean being cut from supply chains or facing tough restructuring decisions.
The only way to avoid becoming a bottleneck is to be ready: structured, traceable, and audit-ready ESG data is now a business essential.
Yes, CSRD is tough. But if you treat it as just another box to check, you’re missing the bigger picture.
This directive is also a unique opportunity to make your business smarter, more efficient, and more resilient.
Why? Because it forces you to take a hard look at your internal processes, your data flows, and your decision-making structure. And when done right, this can uncover inefficiencies, hidden risks, and performance gaps you weren’t even aware of.
For example: do you know how much energy each department uses? Which suppliers have the highest emissions?
If not, your strategy for decarbonization will be unfocused and ineffective.
Where your biggest waste streams are? Without this data, you can’t make meaningful improvements or justify strategic decisions to investors, regulators, or your board.
If you treat CSRD as more than just an obligation, if you use it to drive internal audits, strengthen procurement policies, and prioritize smarter investments, you’ll start seeing real business benefits.
It’s not just about avoiding fines. It’s about gaining an edge: cutting costs, accessing better financing, and being ready for whatever regulation comes next.
And yes, when you communicate your ESG progress with solid data, not fluffy language, you’ll build trust with customers, investors, and employees.
Because in today’s market, sustainability isn’t about good PR, it’s about hard proof. And the ones who can deliver it are the ones who will grow.
The CSRD does not settle for generalities.
It requires us to report concrete, comparable, and auditable data on everything related to environmental, social, and sustainable governance.
A pretty PDF and generic statements are no longer enough.
It’s time to show real impact and how we manage it.
This concept isn’t new, but it’s now mandatory.
What does it mean? That we must analyze the impact of the environment on our business and vice versa.
Not just what affects us, but also how our activity affects the planet, people, and the economic context, focusing on long-term environmental sustainability.
Another key development: ESG reports must be reviewed by an independent third party.
Just like financial statements, ESG data now needs to be validated.
This avoids greenwashing and brings order to information quality.
The CSRD introduces a common language: the ESRS (European Sustainability Reporting Standards).
With these standards, all companies that report will use the same framework.
That allows for comparison across sectors, countries, or competitors.
When we share clear and verifiable information, we gain credibility with investors, clients, and employees.
Companies that report well are the ones that inspire trust.
And that translates into opportunities.
Banks and investment funds are already asking for it: if you don’t report your sustainability properly, you won’t get financing.
Complying with the CSRD opens the door to new sources of funding and improves financing conditions.
Often, the biggest risks aren’t in traditional accounting.
Regulatory changes, reputation, climate, supply chain...
Complying with the CSRD helps us identify these risks and prepare so we don’t face bigger problems later on.
Complying with the CSRD isn’t just about avoiding penalties.
It’s about being ready to compete in markets where this is already the norm.
If we move early, we gain an advantage. If we wait, we lag behind.
And who wants to be left behind?
The big issue isn’t having data, it’s having it well-organized, up-to-date, and ready to use.
Many companies still rely on scattered Excel files, emails, and PDFs that can’t be cross-referenced.
How can we make decisions or report if we don’t have a single source of truth?
Not every team has the time or training to handle ESG data rigorously. And if on top of that the rules or standards change, things get even more complicated.
This is where many companies get stuck, not due to lack of will, but due to lack of means.
Sustainability is still kept in a drawer. It doesn’t intersect with finance, procurement, or strategy, and that’s a mistake.
If we don’t connect ESG with key processes, we miss opportunities and limit ourselves to “complying just to comply.”
Dcycle is not a consultancy or an audit.
We’re a tech solution designed to help any company manage its sustainability with clear, actionable data.
Forget about searching through a thousand sources. Here, everything is together and ready to use.
Do you need to report under CSRD, Science Based Targets initiative (SBTi), ISOs, EINF, or taxonomy?
With Dcycle, you select the use case and generate the reports with the data you’ve already collected.
No need to do the work twice. And no wasting time adapting formats.
When an external verification is requested, everything will be where it needs to be.
With traceability, documentation support, and comparable metrics.
No last-minute scrambles or chaos.
Doesn’t matter if you’re an SME or a multinational.
Our solution adapts to your business, not the other way around.
Because sustainability isn’t just for a few.
It’s for anyone who wants to compete seriously.
One of the most common mistakes with CSRD compliance is confusing reporting with transformation. Reporting properly is good, but what really matters is using the data to drive actual improvements.
A solid ESG strategy doesn’t just collect metrics. It analyzes them, tracks progress over time, and uses insights to make real changes, whether that’s switching suppliers, improving energy efficiency, or rethinking operations.
Measuring for the sake of it is useless. What moves the needle is turning that data into better business decisions.
With CSRD, your supply chain is no longer just a footnote. To meet the standard, you need visibility beyond your own office or factory.
That means collecting data on emissions, labor conditions, material usage, and more… directly from your suppliers.
The problem? Many of them have no idea where to start. That’s why it’s crucial to use tools that simplify data collection and help you structure supplier input, without chasing each one manually.
What they do affects your report too, and if you don’t have their data, your reporting will fall short.
Don’t miss the chance to see it in action, schedule a demo.
If you meet at least two out of these three criteria, you're in:
more than 250 employees, more than €40 million in revenue, or more than €20 million in assets.
It also applies if you are a listed SME or a non-EU company with relevant operations in Europe, especially those that trade stock in regulated markets.
The EINF (Non-Financial Information Statement) was the first step.
The CSRD replaces it and raises the bar: more detail, more companies affected, and mandatory verification.
In short: what used to be a voluntary report is now a requirement with clear rules.
The ESRS (European Sustainability Reporting Standards) are the official standards for reporting under the CSRD.
They define what information you must provide, how to structure it, and what indicators to support it with.
They are the guide so we all report in the same language.
Can you do it manually? Yes. Is it a good idea? No.
Managing ESG data through Excel, emails, or shared folders is a recipe for chaos.
A digital solution like Dcycle saves you time, errors, and headaches.
Non-compliance can lead to penalties, loss of access to funding, or being left out of tenders and supply chains.
But beyond fines, the real risk is being left out of the market.
Because if you don’t measure, you don’t compete. And if you don’t compete, you disappear.
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Carbon footprint calculation analyzes all emissions generated throughout a product’s life cycle, including raw material extraction, production, transportation, usage, and disposal.
The most recognized methodologies are:
Digital tools like Dcycle simplify the process, providing accurate and actionable insights.
Some strategies require initial investment, but long-term benefits outweigh costs.
Investing in carbon reduction is not just an environmental action, it’s a smart business strategy.
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