The CSRD (Corporate Sustainability Reporting Directive) is the European directive that requires large companies to report on their sustainability impact — following fixed standards (the ESRS) and based on double materiality. Since the Omnibus I package, which took effect in March 2026, the scope has narrowed considerably: only EU companies with more than 1,000 employees and more than €450 million in turnover still fall under the obligation. As a result, the number of companies required to report dropped from an estimated 50,000 to around 5,000.
What does the CSRD require?
Companies that fall under the CSRD report their sustainability information in the management report, following the European Sustainability Reporting Standards (ESRS) and with (limited) assurance. The reporting is connected to the financial statements and follows the principle of double materiality.
What is double materiality?
Double materiality means a company reports from two directions: on its own impact on people and the environment (impact materiality), and on how sustainability matters affect the company financially (financial materiality).
What are the ESRS?
The European Sustainability Reporting Standards (ESRS) prescribe what must be reported under the CSRD. Under Omnibus they are being simplified substantially: the number of mandatory data points is set to fall by around 60 percent (from roughly 1,100 to about 430), with more emphasis on materiality. The simplified ESRS are expected in 2026 and are anticipated to apply from financial year 2027.
Who falls under the CSRD after Omnibus?
After Omnibus I, the obligation applies to EU companies with more than 1,000 employees and more than €450 million in net turnover. Listed SMEs are exempted. Non-EU groups fall under it with more than €450 million in EU turnover. Companies that reported earlier (wave 1) but now fall outside scope can be exempted through a member-state option for financial years 2025 and 2026.
When does reporting apply?
Wave 1 companies that remain in scope continue reporting (financial year 2025 in 2026). For the new scope, reporting applies from financial year 2027, published in 2028, based on the simplified ESRS. The directive has been in force since March 2026; member states — including the Netherlands — still have to transpose the rules into national legislation, so the precise details may vary by country.
Outside scope? Data is often still needed
About 90 percent of the companies that previously had to report now fall outside the CSRD. Even so, demand for sustainability data remains: investors, banks and value-chain partners still ask for ESG and scope 3 figures. The voluntary VSME standard is becoming the de facto basis for this. It has therefore become a strategic question rather than a purely legal one.
How does New Economy help?
New Economy helps with the substantiation: a baseline measurement and CO₂ footprint following the GHG Protocol, a double materiality analysis and the data behind the report — translated into strategy and innovation. See Baseline Compliance.
Frequently asked questions about the CSRD
The Corporate Sustainability Reporting Directive: the European directive that requires large companies to report on their sustainability impact following the ESRS standards.
Since the Omnibus I package, only EU companies with more than 1,000 employees and more than €450 million in turnover. Listed SMEs are exempted.
The principle that a company reports both on its impact on people and the environment, and on how sustainability matters affect the company financially.
The European Sustainability Reporting Standards: the standards that prescribe what must be reported under the CSRD. They are being simplified, with substantially fewer mandatory data points.
Often yes: investors, banks and value-chain partners still ask for sustainability and scope 3 data. The voluntary VSME standard is becoming the de facto basis for that.
The CSRD is the law that determines who must report and when; the ESRS are the standards that determine what is reported.
To find out whether the CSRD applies to a given organisation, or which sustainability data is needed, see Baseline Compliance or Contact.