Companies subject to the CSRD is one of the fastest-growing search queries in sustainability compliance.
The directive requires thousands of companies to report ESG impact with clear, verifiable data. More than 50,000 companies across Europe will be affected.
The rule covers listed companies (except micro-enterprises) and large organizations that exceed two of three thresholds: 250 employees, €25 million in assets, or €50 million in revenue. It also applies to non-European companies billing more than €150 million in the EU with subsidiaries in the region.
This article explains who must report, what the CSRD requires, and how to prepare without wasting time or budget.
Need to confirm CSRD scope, centralize ESG data, and prepare ESRS reporting before your deadline? Book a Dcycle demo.
Request a demoWhat is the CSRD and why it matters now
The CSRD (Corporate Sustainability Reporting Directive) is the EU directive that requires companies to report sustainability impact with the same rigor expected of financial data.
It replaces the NFRD and expands scope, detail, and comparability across the European Union.
Evolution from the NFRD
The previous NFRD covered too few companies and produced generic, incomplete disclosures. The CSRD makes transparency a baseline requirement for investors, banks, suppliers, and clients.
The goal: sustainability as a corporate standard
This is not about image. If you cannot measure impact, you cannot manage it or compete in an increasingly demanding market.
The CSRD pushes sustainability into strategy, operations, and financial decision-making.
Who must report under the CSRD
The directive applies to a broad spectrum of companies inside and outside the EU when they meet size or revenue criteria.
Companies obligated from 2024
Since January 2024, companies already under the NFRD must report: mainly large listed companies, financial entities, and insurers.
Their first CSRD report is due in 2025, covering fiscal year 2024 data.
Who joins in 2025 and 2026
From 2025, all large companies exceeding two of the three thresholds must report, even if not listed.
In 2026, listed SMEs join with somewhat more flexibility, but must still report under EU sustainability criteria.
Criteria that define if you are in scope
A company is obligated if it meets at least two of these three criteria:
- More than 250 employees
- More than €25 million in assets
- More than €50 million in annual revenue
Non-European companies billing more than €150 million in the EU with significant subsidiaries are also included.
Tip: Before building processes, validate your perimeter with the [CSRD hub](/collection/csrd) and compare your current obligations against the [CSRD vs NFRD](/blog/csrd-vs-nfrd) timeline.
What CSRD compliance actually requires
Complying with the CSRD is not filling a template. You need real, complete, auditable data presented with financial-grade detail.
Minimum requirement: reporting under ESRS
The first step is reporting under the European Sustainability Reporting Standards (ESRS). Companies must explain how they impact and are impacted by environmental, social, and governance factors with measurable indicators.
The real challenge: ESG data collection
The hard part is not the final report. It is gathering ESG data from scattered internal and external sources, validating it, and linking it to each disclosure requirement.
Without digitization and traceability, the process becomes unmanageable.
Consequences of non-compliance
Failure to comply can lead to sanctions, lost contracts, exclusion from tenders, and restricted access to financing. Banks and investors increasingly require ESG data to continue working with you.
3 benefits of preparing early
Starting before the deadline gives time to organize data, adjust processes, and avoid last-minute errors.
1. Competitive advantage over laggards
Companies that measure and manage ESG impact make better decisions, win tenders, and access more markets.
2. Better financing access and lower risk
Funds, banks, and insurers ask for ESG data to offer favorable terms. Prepared data opens doors and builds resilience.
3. Talent and investor confidence
Clear ESG information signals leadership, transparency, and long-term vision to demanding investors and talent.
3 common challenges for CSRD obligated companies
1. No visibility over ESG data
Most companies do not know where ESG data lives, or whether they have it at all. Spreadsheets and emails across departments block compliance.
2. Poor coordination between teams
ESG involves sustainability, legal, operations, procurement, HR, finance, and logistics. Siloed work creates chaos; the CSRD requires a cross-functional approach.
3. Unclear frameworks and standards
Teams confuse ESRS, Taxonomy, and other frameworks. Clarity on obligations and required data comes before methodology debates.
How to approach the CSRD smartly
At Dcycle we are not auditors or consultants. We help companies organize, validate, and use ESG data to comply and gain efficiency.
What works in practice
Manual collection rarely scales. Automating data gathering and mapping it to CSRD, SBTi, Taxonomy, or ISO frameworks saves time and reduces errors.
4 practical recommendations
- Map the ESG data you already manage.
- Involve all departments from the start.
- Use a platform that translates frameworks into actionable requirements.
- Start early: the sooner you begin, the easier it is to scale.
Tip: Pair scope validation with a [double materiality assessment](/blog/csrd-double-materiality) early. It defines which ESRS topics you must report and prevents collecting data you will never use.
Want to automate CSRD data collection and ESRS reporting without spreadsheets?
See the platformWhy Dcycle is your CSRD ally
All-in-one ESG data capture
Dcycle connects to your systems and centralizes relevant data automatically. No chasing Excel files across departments.
One dataset, multiple frameworks
Use the same data for CSRD, Taxonomy, SBTi, ISO 14064, and other use cases without redoing the work.
Faster reporting with audit-ready evidence
Automated collection reduces errors, frees teams from repetitive tasks, and keeps evidence traceable for verification.
Start with a platform built for CSRD scope, ESRS reporting, and multi-framework compliance.
Talk to the teamFrequently asked questions (FAQs)
When does the CSRD take effect and who is affected first?
The CSRD has applied since January 2023. The first obligated companies were those already under the NFRD. More groups join in 2025 and 2026, including large non-listed companies and listed SMEs.
What is the difference between the CSRD and the NFRD?
The CSRD replaces the NFRD, expands the number of obligated companies, and requires much more detailed, verified, structured data.
What happens if my company does not publish the required CSRD report?
Consequences can include fines, loss of financing access, exclusion from tenders, and lost contracts. It is a legal obligation with direct business impact.
What are the ESRS and how do they relate to the CSRD?
The ESRS (European Sustainability Reporting Standards) define how to report under the CSRD: which indicators to present and how to structure ESG information.
How do I know if my company must report under the CSRD?
If you meet at least two of three criteria (250+ employees, €25M+ assets, €50M+ revenue), you are likely in scope. Non-EU companies with €150M+ EU revenue and subsidiaries may also be obligated.