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published on 11 March 2024 I reading time approx. 4 minutes
With the start of application of the Corporate Sustainability Reporting Directive (CSRD), the sustainability report must undergo a mandatory audit for the first time. To ensure that this can take place smoothly, the disclosed data must meet certain requirements and be verifiable. However, due to the high amount of qualitative and quantitative data points to be reported in future, ensuring auditability poses major challenges. At best, the course for an efficient audit process is already set in the run-up to data collection.
With the replacement of the Non-Financial Reporting Directive (NFRD) by the Corporate Sustainability Reporting Directive (CSRD) from January 1, 2024 on and the associated expansion of the group of users, corporate sustainability reporting will experience a significant increase in importance. Whereas previously only around 500 companies across Germany were obliged to prepare a non-financial statement in accordance with the NFRD, the CSRD will require around 15,000 companies to disclose information on their sustainability performance in future. The start of application will be staggered – for the 2024 financial year, the new regulation will initially affect those companies that are already subject to the NFRD. Large non-capital-market-oriented companies (from FY 2025) and listed SMEs (from FY 2026 with the option of voluntary deferral until FY 2028) will also gradually be required to prepare a CSRD-compliant sustainability report.
Christian Maier
Head of Sustainability Services, Partner
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Annalena Krueger
Associate