CSRD is an EU regulation designed to enhance and standardize sustainability reporting for companies operating in or connected to EU markets. Built as a natural successor to the NFRD, CSRD significantly expands reporting scope and requirements, introducing the concept of double materiality. To support the implementation of these obligations, EFRAG developed the ESRS (European Sustainability Reporting Standards), which include both sector‑agnostic and sector‑specific requirements. Sector‑specific ESRS standards are expected to be published by June 2026, giving companies additional time to focus on implementing the general ESRS standards.
It is estimated that CSRD will cover approximately 50,000 companies within the EU—a substantial increase compared to those covered by the NFRD. CSRD will also apply to around 10,000 companies outside the EU that generate significant revenue within the EU (over EUR 150 million annually).
Adopting advanced reporting practices enables companies in Serbia to identify and capitalize on new opportunities brought by regulatory changes. By prioritizing transparency and innovation, companies can lay the foundation for sustainable growth, build stakeholder trust, and secure long‑term market relevance.
The alignment between the ESRS framework and the GRI reporting standards facilitates an easier transition for companies already using GRI standards toward CSRD compliance, ensuring high‑quality, credible reporting. However, compliance requires a strategic and structured approach, including identifying material impacts and implementing efficient data collection systems.
Below are practical recommendations for companies seeking to meet CSRD requirements, align with new standards, and distinguish themselves as leaders in sustainable business practices:
- Familiarize yourself with csrd
Begin by understanding the CSRD and its components, such as double materiality and the ESRS framework. CSRD introduces stricter and broader sustainability disclosure requirements for companies doing business in or connected to EU markets. Organizing internal workshops, training, and reviewing official EU and EFRAG resources ensures leadership and departments are aligned with CSRD expectations.
Gather information and implement data governance
CSRD relies on accurate, consistent, and verifiable ESG data. Companies must assess their existing data collection systems to identify areas for improvement in key fields such as greenhouse gas emissions, energy consumption, workforce management, and corporate governance practices. Implementing specific data governance solutions centralizes ESG data, ensuring reporting consistency and audit readiness.Map mandatory reporting requirements
Mapping CSRD reporting obligations is crucial to ensure your company discloses all relevant information. ESRS defines sector‑agnostic standards (e.g. on climate change, biodiversity, and workforce data disclosure) as well as sector‑specific standards. Companies can streamline the CSRD mapping process by leveraging existing frameworks like the GRI standards, which align closely with many ESRS requirements. Focus on material ESG topics—such as emissions, energy consumption, water management—then develop a reporting plan to address short‑term gaps and long‑term sustainability goals.Conduct and define double materiality
Double materiality is a core CSRD requirement, requiring companies to assess how their operations impact the environment and society, and how sustainability issues affect their financial performance. Companies should conduct comprehensive materiality assessments, engaging key stakeholders—employees, investors, suppliers, and local communities—to identify and prioritize material ESG topics.
Conclusion
Sustainability reporting under CSRD is more than just a legal obligation—it positions your company as a sustainability leader and builds trust with investors, clients, and regulators. Given CSRD’s complexity, companies benefit from expert support to streamline reporting processes and efficiently meet data verification requirements. Timely action and strategic consulting play a crucial role in shaping a future that is both business‑competitive and environmentally responsible—locally and globally.
