What is CSRD and who is affected?

Die Corporate Sustainability Reporting Directive (CSRD) is an EU directive that requires companies to prepare comprehensive reports on their environmental, social and governance (ESG) practices. The CSRD expands the scope of the previous Non-Financial Reporting Directive (NFRD) and affects significantly more companies. Companies must prepare a sustainability report if they meet two of the following criteria:

• More than 250 employees,
• turnover of over 40 million euros,
• Total assets of more than 20 million euros.

This guideline therefore also applies to many medium-sized companies, particularly in the manufacturing sector.

What does the CSRD mean for medium-sized manufacturing companies?

For the first time, medium-sized manufacturing companies must 2026 publish a sustainability report. This report will be the Data from fiscal year 2025 include and must be available in a clear, structured format. This means that companies should start preparing in 2024 in order to collect the necessary data and structures in good time.

For many companies in the manufacturing sector, this will require a comprehensive change, as in addition to financial aspects, the effects of business activities on the environment and society must be documented in detail.

The process for medium-sized manufacturing companies

In order for companies to be able to present a complete and rule-compliant report on their sustainability performance in 2026, a clear timetable is necessary. Here is the recommended process:

1. Start of the double materiality analysis (end of 2024)

The first step is to Dual essentiality to determine. This means that companies must assess both the impact of environmental and social issues on their financial performance (outside-in) and their own impact on the environment and society (inside-out).

For medium-sized manufacturing companies, it is recommended to start this process Q4/end of 2024 to start. This gives companies sufficient time to identify all relevant ESG issues that are important to their business areas and stakeholders. During this phase, initial stakeholder dialogues should also be conducted in order to understand and consider external expectations.

2. Start data collection (early 2025)

From At the beginning of 2025 Does the start Collection of relevant ESG data. For manufacturing companies, this means collecting a wide range of data on environmental indicators such as CO2 emissions, energy and water consumption, and waste management. Data on social aspects such as employee satisfaction, occupational safety and supply chain responsibility are just as important.

Well-organized data collection processes are crucial for this step. Companies should ensure that they use both internal and external sources to create a comprehensive data base. This could mean using specialized software solutions to make data collection efficient and ensure that all regulatory requirements are met.

3. First test report (end of 2025)

A crucial step is to create a Test report until the end of 2025. This report is a dress sample that helps companies verify the quality and completeness of their ESG data and identify any gaps or weaknesses in the report. The test report enables the company to ensure that all relevant information is available for the final report and meets CSRD requirements.

For medium-sized manufacturing companies, this test run offers an important opportunity to familiarise themselves with the reporting process and make adjustments before the final reporting requirement begins in 2026.

4th final sustainability report (2026)

In the year 2026 manufacturing companies must publish their first official CSRD sustainability report. The report will include data collected in the previous year and provide both quantitative and qualitative information about the company's ESG performance. Importantly, this report is not only a legal obligation but also an opportunity to highlight the company's commitment to sustainable practices.

Specifically: Start now to complete the process on time

In order to meet CSRD requirements in good time, companies should take action now. software solutions for ESG data collection and reporting can help make the process efficient. Such tools should be selected and implemented at an early stage so that companies have sufficient time to test and adapt their systems.

It is also crucial to have a project team , which deals with the requirements of the CSRD, clarifies responsibilities and develops a clear timetable. Through a proactive approach and early planning, medium-sized manufacturing companies can not only meet regulatory requirements, but also achieve strategic benefits through clear and transparent sustainability reporting.

conclusion

The CSRD presents SMEs with new challenges, but also offers opportunities. Companies that prepare for the requirements at an early stage can not only ensure compliance with the Directive, but also strengthen their position in the market. With a clear timeline and the right tools, SMEs can effectively collect and report their ESG data to successfully publish their first sustainability report by 2026.

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