Corporate Sustainability Reporting Directive (CSRD)

What is CSRD legislation?

CSRD legislation arose from the need to provide transparency about the activities of companies and to offer better quality sustainability information. This is a central aspect of the European Union’s Green Deal. But what is CSRD legislation and why is it important for companies? We explain it below.

CSRD legislation requires companies to transparently report on the sustainability impact of their activities on people and the environment from 2024 onwards. There are three key themes within CSRD: environment, social and governance, also known as ESG. Each company must report on these themes in this manner according to the European Sustainability Reporting Standards (ESRS). For example, the ESRS includes reporting on CO2 emissions, the gender distribution in top management, personnel policies, and information on managing relationships with suppliers. The goal of the CSRD legislation is for the reporting of non-financial information to become as important and of the same quality as traditional financial reporting.

Key points of CSRD explained

The Corporate Sustainability Reporting Directive outlines several key points that companies must adhere to:

• For large publicly traded companies, the CSRD will be effective for the 2024 financial year. It will later apply to many companies not currently covered by the Non-Financial Reporting Directive.
• The directive requires companies to collect, process and publish large amounts of data and information. To achieve this, new systems, processes and governance structures will need to be established.
• An external auditor must provide assurance on sustainability reporting, initially with limited certainty, and later with a reasonable level of certainty.

Which companies subject to the CSRD?

CSRD legislation will be phased in for various companies. From 2024, the legislation will be mandatory for large companies. To qualify as a large company, two of the following three criteria must be met:

• The company has more than 250 employees.
• The company has an annual turnover of more than 50 million euros.
• The company has over 25 million euros in assets.

For non-publicly traded SMEs, a different form of the CSRD that is more realistic and feasible for such companies is under consideration. From the 2026 financial year, the CSRD will also apply to publicly traded SMEs and in 2028 to non-EU companies. These companies must be prepared to report according to the CSRD standards before the fiscal year begins. Therefore, companies will soon have to report and publish a lot of new and very specific information.

What does the CSRD mean for your company?

Under the CSRD, large companies in the Netherlands are required to report on their sustainability performance in their annual reports. Depending on the size of the organisation, this could be mandatory from the 2024 financial year. These are often large enterprises already required to report based on the Non-Financial Information Disclosure Decision (NFI). Instead of only reporting on financial status, companies will also become more conscious of their impact on the climate.

Thanks to legislation such as the CSRD and the Packaging and Packaging Waste Regulation (PPWR), companies will increasingly focus on their environmental impact. Packsize is committed to helping your company achieve its sustainability goals. Implementing an automatic packing machine means:

• Reduction of CO₂ emissions: Our packaging machines, the CVP Impack and CVP Everest, use smart techniques to package products sustainably. By customising boxes, you can save up to 50% in volume, leading to fewer transport movements as more packages can be shipped simultaneously, thus lowering the environmental burden.
• ‍40% saving on cardboard: With our machines, you can save up to 30% on cardboard, as less material is needed to pack your products. This results in less production and procurement of cardboard, which in turn leads to lower CO₂ emissions and less transport of empty cardboard.
• Improvement of image: Globally, 55% of online consumers are willing to pay more for products from companies that strive to reduce their environmental impact. Demonstrating your company’s commitment to sustainability can lead to increased sales. Packsize is happy to assist you in sustainably packaging your products and improving your environmental image.
• Ergonomic packing: Our machines are certified, reducing the strain on personnel.
• Smooth workflows: The machines can scale up and down quickly, contributing to a consistent and pleasant workflow for all employees.
• Use of recycled corrugated cardboard: Our corrugated cardboard is fully recyclable, contributing to circular operation. The machine can also be fed with recycled cardboard, supporting the sustainability cycle.

With all these benefits, we can help your company properly anticipate the new legislation.

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