CSRD

The Corporate Sustainability Reporting Directive (CSRD) is a European directive that requires companies to report on sustainability. This reporting focuses not only on financial performance but also on the impact of business activities on people, the environment, and society. The CSRD is part of the European Green Deal and aims to ensure greater transparency and more comparable sustainability information within the European Union.

Corporate Sustainability Reporting Directive (CSRD)

In March 2026, the European Union announced that the CSRD would be relaxed via the so-called Omnibus Directive. As a result of this adjustment, significantly fewer companies are subject to mandatory sustainability reporting. From now on, the reporting obligation applies only to very large enterprises: companies with an average of more than 1,000 employees and a net turnover of at least 450 million euros. For many enterprises, this means that they are no longer required to prepare a CSRD sustainability report, which reduces the administrative burden.

Modified CSRD rules

The relaxation also has implications for the timing. Under the amended rules, the CSRD applies to financial years starting on or after 1 January 2027. In addition, the directive offers Member States the option to apply a temporary exemption for the 2025 and 2026 financial years for companies that were subject to reporting requirements under the old rules but are no longer subject to them under the new thresholds. The Netherlands has indicated that it intends to make use of this option. [mkbservicedesk.nl]

Reporting obligation

Although many SMEs fall outside the direct reporting obligation due to this change, they may still be indirectly affected by the CSRD. Large enterprises that do fall under the CSRD must also report on their value chain in their sustainability report. This means that they can request information from suppliers and partners. However, the Omnibus Directive stipulates that such information requests from companies with fewer than 1,000 employees are limited. Entrepreneurs may refuse a request if it goes beyond what is required under the CSRD. [mkbservicedesk.nl]

Themes

According to the Netherlands Enterprise Agency (RVO), the CSRD focuses on three main themes: environment, social aspects, and good governance, also referred to as ESG. An important guiding principle in this regard is the principle of dual materiality. Companies consider, on the one hand, the impact of their activities on people and the environment, and on the other, the influence of sustainability developments on their own business operations and financial position. The reporting must comply with the European Sustainability Reporting Standards (ESRS), which are currently being revised by the European Commission to further reduce the regulatory burden.

Voluntary reporting standard

For companies that do not fall under the CSRD, a voluntary reporting standard has been developed: the VSME. This allows organizations to still provide structured insight into their sustainability policy, for example to meet customer inquiries or to increase transparency towards stakeholders. These voluntary standards are also evaluated and adapted at the European level.

Conclusion

The relaxation of the CSRD therefore changes the obligations for many entrepreneurs, but sustainability and transparency remain important themes in doing business. Particularly for companies that are part of international supply chains or supply large enterprises, it remains wise to have insight into their own impact and to be able to communicate clearly about this.

Sources:

Corporate Sustainability Reporting Directive (CSRD) | RVO.nl

EU relaxes CSRD: fewer companies required to report – SME Service Desk