CSRD Reporting

What is CSRD (Corporate Sustainability Reporting Directive) and When Will It Be Implemented?

CSRD (Corporate Sustainability Reporting Directive), is a regulation adopted by the European Union that requires companies to mandatory report their sustainability performance. The CSRD aims to encourage a shift towards a more sustainable and responsible approach to business by increasing transparency on environmental, social and governance (ESG) issues.

This directive, previous NFRD (Non-Financial Reporting Directive)It will replace and apply to a much wider range of companies. Companies will be required to prepare reports in accordance with the EU Sustainability Reporting Standards (ESRS), undergo independent audits and present their sustainability performance digitally. The CSRD will cover both the impact of sustainability risks on companies and the impact of companies on the environment and society, with the principle of “double materiality”.

CSRD Implementation Schedule

The CSRD will come into force in phases between 2024 and 2028:

• 1 January 2024: It will apply to large companies previously covered by the NFRD. These companies will submit their sustainability reports for the 2024 fiscal year in 2025.
• 1 January 2025: The CSRD will come into force for large companies, which will publish their 2025 financial year reports in 2026.
• 1 January 2026: Küçük ve Orta Büyüklükteki İşletmeler (KOBİ’ler) için uygulanmaya başlanacaktır.
• 1 January 2028: From this date onwards, micro enterprises will also be required to report under the CSRD.

This phased transition allows sufficient preparation time for companies of different sizes to adapt to the new regulations.