{"id":66032,"date":"2024-08-21T12:39:01","date_gmt":"2024-08-21T09:39:01","guid":{"rendered":"https:\/\/www.sweco.fi\/?post_type=blog&p=66032"},"modified":"2025-12-23T08:58:05","modified_gmt":"2025-12-23T06:58:05","slug":"navigating-eu-sustainability-reporting-with-csrd-compliance","status":"publish","type":"blog","link":"https:\/\/www.sweco.fi\/en\/blog\/navigating-eu-sustainability-reporting-with-csrd-compliance\/","title":{"rendered":"Navigating EU Sustainability Reporting with CSRD Compliance"},"content":{"rendered":"
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Recently, there have been significant updates to EU legislation regarding sustainability reporting. These updates have expanded the application scope of the reporting requirement and specified the content of the reporting. The intention behind these new rules is to provide investors and other stakeholders with access to relevant, comparable, and reliable sustainability information. The importance of sustainability reporting is expected to be on part with traditional financial reporting. The Corporate Sustainability Reporting Directive (CSRD) plays a vital role in driving this transformation.<\/p>\n

Expanded application scope under CSRD<\/h2>\n

The new Corporate Sustainability Reporting Directive<\/a> (CSRD) entered into force in January 2023, with EU Member States required to implement its provisions into national law and regulation by 6 July 2024. CSRD requires all large and all listed companies (except listed micro-enterprises) to disclose their sustainability-related information. Third-country undertakings which have significant activity on the territory of the European Union will also be required to disclose their sustainability information. The reporting obligation enters into force gradually for different types of companies from 2024 to 2029.<\/p>\n

CSRD applies to Sweco as well. Sweco is yearly reporting its own sustainability information, and the most recent sustainability report for the year 2023 was published in April 2024 and can now be accessed via this link Sweco sustainability report 2023<\/a>.<\/p>\n

Standardisation of reporting content with ESRS<\/h2>\n

The content of sustainability reporting has been structured and specified to ensure consistency and comparability. Companies are now required to report in accordance with the European sustainability reporting standards<\/a> (ESRS), which were adopted in July 2023 as part of the Corporate Sustainability Reporting Directive (CSRD). These reporting standards are mandatory for all companies that fall under the jurisdiction of the CSRD.<\/p>\n

Mandatory audit requirements for CSRD compliance<\/h2>\n

CSRD also requires auditing of the sustainability information. A gradual approach to the audit requirement from limited assurance to reasonable assurance is envisaged.<\/p>\n

Double materiality assessment in CSRD<\/h2>\n

CSRD provides for a \u2018double materiality perspective\u2019 which requires companies to report not only on the impacts of the company\u2019s activities on people and the environment (inside-out view), but also on how climate change and other sustainability matters affect the company (outside-in view). Companies should consider both of these perspectives in their materiality assessments. Double materiality assessment is a necessary basis for a company\u2019s sustainability reporting and sustainability strategy. Learn more about double materiality assessment in our blog post<\/a>.<\/p>\n

EU Taxonomy reporting requirements<\/h2>\n

EU taxonomy reporting requires companies to assess the sustainability of their economic activities in accordance with the EU Taxonomy criteria. EU taxonomy reporting is included in a company\u2019s sustainability reporting. The scope of the EU taxonomy reporting will therefore expand in accordance with the CSRD, requiring more companies to disclose their EU Taxonomy information.<\/p>\n

Sweco experts can provide the following services in relation to the EU taxonomy:<\/p>\n