On November 28, 2022, the EU adopted its Corporate Sustainability Reporting Directive (in short ‘CSRD’), which imposes a non-financial reporting obligation on larger companies. However, the obligation also extends to companies’ suppliers, so smaller companies may indirectly be subject to the requirements. The requirements also apply to companies that rent out properties, but what do the requirements actually mean?
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These provisions deal with corporate social responsibility, the underrepresented gender and diversity policy respectively.
With CSRD, the circle of companies that must carry out non-financial reporting has expanded, as previously only companies with over 500 employees were covered by NFRD.
To be covered by CSRD, a company must now – for 2 consecutive financial years – exceed 2 out of 3 set criteria or be publicly listed.
These criteria are:
– A balance sheet total of DKK 156 million.
– A net revenue of DKK 313 million.
– A number of employees of 250
If the company exceeds 2 out of 3 of these thresholds, it will be subject to the non-financial reporting requirements of the CSRD.
This reporting covers the 3 areas:
- Environmental conditions
- Social conditions and
- Governance
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