Ongoing ESG reporting project: Efficient and future-proof mapping of increasing CSRD requirements

The CSRD introduces more detailed reporting requirements than under the current Non-Financial Reporting Directive (NFRD), including mandatory disclosure of human rights, environmental rights, social rights and governance factors. It applies to a broader area and range of topics.

Non-financial reporting must now be audited and published as part of a company’s digital management report. This puts non-financial reporting on an equal footing with financial reporting.

The CSRD, together with the EU taxonomy, will become an ongoing project for all companies as their ESG thresholds, activities and underlying environmental targets are successively expanded and tightened. Insurers’ sustainability reporting, which today is primarily qualitative, will be supplemented by extensive regular quantitative reporting in the sense of annual sustainability reporting with full audit relevance. The new reporting requirements under the CSRD will apply to insurance companies in stages from 2024, as they are already affected by the Non-Financial Reporting Directive (NFRD).

As a new reporting component of the CSRD, the disclosure of the assessment of taxonomy capability already applies for 2022 and the assessment of taxonomy compliance from 2023. According to a classification system, companies must present the taxonomy-compliant share of their sales revenues, capital expenditures (CapEx) and operating expenditures (OpEx) and the relationship to their sustainability strategy.

CRSD Reporting obligations at a glance:

• Sustainability report according to a uniform EU reporting standard (ESRS).
• Publication in the management report
• Publication in a machine-readable format
• Obligation for external audit