CONTACT

Services

Corporate Sustainability Reporting Directive

What does CSRD represent?
CSRD (Corporate Sustainability Reporting Directive) refers to the sustainability reporting by legal entities, as described in EU Directive 2022/2464 of the European Parliament and Council.
At the national level, the CSRD Directive is transposed by Order 85/2024, which regulates aspects related to sustainability reporting.

What is the purpose of CSRD?
The purpose of the sustainability report is to address environmental, social (including workforce-related issues), and governance aspects (including anti-corruption measures), known as ESG (Environment, Social, Governance).
The sustainability report is based on mandatory ESRS (European Sustainability Reporting Standards), which are included in Delegated Regulation UR 2023/2772. These can be used starting from January 1, 2024, alongside GRI Standards (Global Reporting Initiative). There are 12 ESRS standards in total, divided into 2 cross-cutting standards and 10 thematic standards (5 environmental, 4 social, and 1 governance standard).

How does CSRD work?

The sustainability report must be prepared by companies that meet the following criteria:
a) SMEs that, on the balance sheet date, meet at least two of the following criteria:

1. SMEs that, on the balance sheet date, meet at least two of the following criteria:

  • Total assets: 17,500,000 RON;
  • Net turnover: 35,000,000 RON;
  • Average number of employees during the financial year: 50.

2. Corporate groups, including the parent company and its subsidiaries, meeting at least two of the following criteria:

  • Total assets: 105,000,000 RON;
  • Net turnover: 210,000,000 RON;
  • Average number of employees during the financial year: 250.

For corporate groups, there are exceptions:

  • Companies included in the consolidated report of EU administrators are exempt from preparing the sustainability report.
  • Subsidiaries of companies exceeding certain size criteria, as mentioned above, are exempt from preparing the sustainability report.

What is the CSRD implementation timeline?

The implementation timeline for legal entities will be as follows:

1. January 1, 2025 (for the year 2024):

  • Medium and large public interest entities, with 500 employees at the balance sheet date;
  • Public interest entities, which are “groups,” with over 500 employees at the balance sheet date.
  1. January 1, 2026 (for the year 2025):
  • Medium and large legal entities that are not of public interest;
  • “Group” legal entities that are not of public interest.
  1. January 1, 2027 (for the year 2026):
  • Legal entities that do not meet the applicable size criteria for the years 2024 and 2025, listed on a regulated market.
  1. January 1, 2029 (for the year 2028):
    • Legal entities, subsidiaries, or branches based in Romania, whose parent companies are regulated in third countries, applying certain size criteria.

What is “double materiality” in CSRD?

The ESRS standards, based on which the sustainability report is prepared, adopt the concept of “double materiality.” This requires legal entities to report both the impact on people and the environment, on the one hand, and, on the other hand, how environmental and social issues create financial risks and opportunities for the company.

Which economic sectors are affected by CSRD?

Economic sectors with significant ESG impact include: energy, mining, transport, industrial manufacturing, retail (food and beverages), milling products, textile industry, utilities, real estate, and healthcare.

What are the benefits for companies aligning with CSRD?

Compliance with sustainability regulations brings three major benefits to legal entities:

  • Financial access – confirming eligibility for sustainable financing sources;
  • Competitive advantage – by confirming the image and consumer perception through ESG reporting;
  • Increased efficiency – analyzing reported ESG data can lead to a more efficient and sustainable production system, cost reduction, etc.

How can our experts help?

  • Preparing the Sustainability Report;
  • Preparing the Non-financial Reporting Report;
  • Preparing the Financial Reporting Report (financial services sector);
  • Technical assistance in aligning legal entities with the EU Taxonomy;
  • Technical assistance in CSRD-related matters.