sustainability reporting

The European Commission's Omnibus Procedure I - COM(2025)80 postpones the implementation dates of the CSRD. Companies that were not previously required to submit reports now have more time to prepare for sustainability reporting. Financial institutions, insurance companies and other large companies must prepare for changes and updates to the existing ESRS.

postponement of sustainability reporting

There have been timeline adjustments to the regulations which require companies to report on sustainability. Medium-sized companies must now only prepare to report from the 2027 financial year, and the same applies to companies from non-member countries. Smaller companies are no longer subject to the reporting obligation. In addition to the ESRS, which is expected to be updated in Q4 2025, the new VSME reporting standard for voluntary reporting by SMEs has also been announced. This is particularly interesting for smaller companies that want to prepare a simplified report for external stakeholders.

Further information on the topic of reporting

added value

Sustainability reporting is now more than just a statement on sustainability. It should provide transparency about a company's situation and sustainability efforts and enable comparison between companies.

In addition to the legal requirements for sustainability reporting, the topic is also relevant in other contexts, e.g. in the procurement of new capital, the awarding of contracts, supplier management, recruiting or corporate communications.

Sustainability reporting also provides an initial starting point for identifying and eliminating weaknesses in a company's own sustainability.

reporting dimensions

Reporting is a major challenge for sustainability, as different requirements are needed for different areas.

external reporting

External reporting now has the same relevance for companies as the financial report and must therefore be of the same quality and reliability.

esg-software

The market for ESG software providers has become very diverse, with options for everything from small solutions for individual topics to large integrated CSRD reporting tools.

internal reporting

Internal reporting currently still plays a secondary role in reporting. It is set to become more important as a result of materiality analysis, the implementation of sustainability strategies and the requirements for ESG risk management.

kpis and monitoring

Published reporting standards contain key figures and KPIs that need to be continuously monitored, particularly for management purposes. Beyond that, internal reporting to measure the implementation of the sustainability strategy or reports to third parties also require increasingly complex KPIs.

standards

In addition to the ESRS for CSRD, there are other standards that may be of interest depending on the business area.

The European Sustainable Reporting Standards (ESRS) of EFRAG are used for the CSRD. These stipulate disclosure requirements and key figures in the areas of general management, environment, social affairs and governance. An update of the ESRS is expected for Q4 2025.

The Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME) is a new standard that small companies can voluntarily use. It comprises basic information and supplementary modules, from which key figures are selected for reporting.

The International Financial Reporting Standard (IFRS) also comprises two parts for sustainability reporting, S1 and S2. S1 primarily contains disclosures on dealing with risks, while S2 includes climate-related disclosures.

In an international context, the GRI standards are still relevant, despite having been in existence for almost 30 years. These include general, sector- and topic-specific reporting requirements. Companies can also use them for their internal reporting.