Who is covered?
The phasing-in, deadlines, etc. are affected by the EU Commission's omnibus proposal.
Companies in Denmark will be covered after a gradual phasing-in:
- From financial year 2024
Listed companies and state-owned limited liability companies (accounting class D), which are large companies according to the size limits for accounting class C (large) and which have more than 500 employees (on average for the year). - From financial year 2025
Other large companies (both listed and unlisted) measured according to the size limits for accounting class C (large). - From financial year 2026
Small and medium-sized listed companies (except micro-enterprises) with the possibility of a postponement to 2028.
Reporting requirements
The requirements are comprehensive and include, among other things, the strategic work on sustainability and a detailed assessment of the company's impact on the outside world and the impact of the outside world on the company through a dual materiality analysis.
This is followed by the comprehensive reporting requirements as stipulated in the ESRS (European Sustainability Reporting Standards). Sustainability reporting must be included as part of the annual report and is also subject to the requirement for a limited assurance auditor's statement.
There is therefore a major task ahead in terms of determining data requirements and subsequently establishing internal systems and processors that ensure the provision of data and its quality - in the same way as with all other financial data.
Not covered? Familiarize yourself with CSRD anyway
Your business may be indirectly affected by CSRD requirements if you are a supplier to larger companies that are covered. Companies that do business with larger companies may be required to measure and document their impact on the environment and climate, as well as social and governance (ESG) issues.
The ability to meet increasing demands for ESG data from customers and partners will therefore be crucial for competitiveness going forward.
