The sustainable reporting directive CSRD: what does it mean for you?

  • Background
  • Edited 23 July 2026
  • 1 min
  • Managing and growing
  • Sustainability

The Corporate Sustainability Reporting Directive (CSRD) is a European directive that requires large companies to report on sustainability. Do you do business with such a company? Then they may ask you to produce a sustainability report as well.

Update

The European Commission has issued a proposal to make CSRD easier for businesses. The mandatory reporting requirement now applies only to businesses with more than 1,000 employees and a net turnover of more than €450 million. Previously, the thresholds were 250 employees and €50 million in turnover.

What is a sustainability report?

What impact does your business have on the local community and the world? Many large businesses are required to answer this question in a sustainability report. This is a report containing information about a business’s impact on, for example, the environment and human rights. This obligation is set out in the Corporate Sustainability Reporting Directive (CSRD), a European directive. In the Netherlands, the minister has submitted a proposal to the House of Representatives how to implement this directive.

Who does the CSRD apply to?

  • The rules have applied since 2024 to businesses that were already required to include a non-financial statement in their annual report.
  • From the financial year 2027, the CSRD will also apply to businesses with more than 1,000 employees and a net turnover of more than €450 million.
  • Businesses from outside the EU must also report if they have a net turnover of more than 450 million euros and a subsidiary in the EU with a net turnover of more than 200 million euros.

The European Sustainability Reporting Standards (ESRS). state what information must be included in the report. 

Sustainability reporting for SMEs

Even if your business is not yet required to report, you may be asked questions about sustainability. This is because large businesses are also required to provide information on the sustainability of their suppliers in their reports. So you can expect questions from larger businesses that buy your products. For example, about how your product is made and by whom. You only need to provide information on topics covered by the VSME standards.

VSME: voluntary sustainability reporting for SMEs

The Voluntary Small and Medium-sized Enterprises Standards (VSME ESRS) are designed for SMEs that are not subject to the CSRD rules but wish to produce a sustainability report. These standards are simpler than those for large businesses.

More information about the CSRD

On the Social and Economic Council (SER) website you will find more information and frequently asked questions about CSRD.

You can contact the CSR Support Centre with any questions about the CSRD and sustainability reporting for SMEs.

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