In a recent blog post, we examined the purpose of the Corporate Sustainability Reporting Directive (CSRD) and explained that some businesses will need to have the processes in place to record carbon emissions from the day their 2024 financial year begins. In this blog we explain which businesses need to be ready now and who will follow;
- Organisations that are already within the existing scope of the NFRD
Required to report in 2025 for financial years beginning on or after 1 January 2024. This includes around 11,700 large EU public interest organisations with more than 500 employees. If you are already publishing a non-financial report on your environmental, social, and corporate governance (ESG) performance alongside your annual management report, under the Non-Financial Reporting Directive (NFRD), you automatically fall into this category. - Large organisations and EU undertakings of large groups
Required to report in 2026 for financial years beginning on or after 1 January 2025. In October 2023, updated definitions of large organisations were issued. At the time of publication, all companies fulfilling two of the following three criteria are eligible:
- Net turnover of more than €50 million
- Balance sheet assets greater than €25 million
- More than 250 employees. - Small and medium enterprises (SMEs) listed on EU regulated markets
Required to report in 2027 for financial years beginning on or after 1 January 2026. Inclusion criteria was also updated in October 2023 to encompass organisations who meet two of the following requirements:
- Net turnover of more than €900,000
- Balance sheet assets greater than €450,000
- More than 10 employees. - Non-EU companies with EU large or listed subsidiaries or an EU branch
Required to report in 2029 for financial years beginning on or after 1 January 2028. Responsibility for reporting sits with the branch or subsidiary located within the EU.
While reporting timelines rely on various factors, it’s likely that increasing pressure from investors to understand the impact of sustainability on wider business risks and opportunities will see more businesses take action outside of scope. The voluntary compilation of indepth sustainability reports will serve to demonstrate growing demand for transparency.
Whether you need or want an accurate and auditable means of tracking the impact your business has on people and the planet, CKDelta has a team of experts you can talk to about the reporting mechanisms you have in place and roadblocks to creating a comprehensive picture. △Carbon is helping businesses transform zero or fragmented insights into compliance ready reports, using the power of AI. Find out more here.