Sustainability reporting for companies with more than 1,000 employees – strategies for preparing for the potential CSRD delay
In February 2025, the European Commission proposed adjustments to the Corporate Sustainability Reporting Directive (CSRD). These adjustments include a potential delay in the reporting obligations for large companies that were originally expected to report from 2026. If this proposal is adopted, these companies would not need to report until the fiscal year 2027 (meaning reports would be published in 2028). Additionally, the reporting obligation would only apply to companies with more than 1,000 employees (up from the previous threshold of 250 employees).
While the final decisions on the postponement and thresholds are still pending, companies that are likely to be subject to these requirements are advised to familiarize themselves with the CSRD standards without delay. Early preparation not only supports better integration of sustainability into corporate strategy but can also lead to significant cost savings in the medium term. Companies that proactively build an ESG data infrastructure can avoid bottlenecks and high implementation costs associated with last-minute compliance.
Why companies should take advantage of the potential delay
The CSRD sets high standards, especially through the double materiality assessment (DMA) and detailed ESG reporting in line with the European Sustainability Reporting Standards (ESRS). Establishing the necessary structures and processes takes time – and those who start early will reap long-term benefits.
Recommended steps for preparation:
- Conduct a double materiality assessment: Identifying key ESG factors is a foundational step that can take several months.
- Build ESG data management systems: Effective ESG data collection allows companies to structure data for future reporting.
- Optimize internal training and processes: Employees and management should be familiar with CSRD requirements to ensure smooth implementation.
- Run pilot sustainability reporting projects: Trial ESG reports in a simplified form to identify and resolve challenges early.
- Save costs through early implementation: Companies that act early can realize cost savings by avoiding last-minute resource allocation.
An easy start with the ESRS Lite module
To ease the entry into ESG reporting, the ESRS Lite module offers a practical starting point. This module enables companies to focus on the most critical standards first, rather than immediately implementing the full ESRS requirements. This approach allows organizations to gain initial experience without overwhelming internal resources.
Conclusion
If the proposed postponement is adopted, companies with more than 1,000 employees gain two additional years to prepare. Those who use this time wisely will secure competitive advantages, save costs, and avoid operational bottlenecks. Early adoption of ESG tools like the ESRS Lite module helps integrate sustainability reporting step by step into daily operations, ensuring future regulatory requirements can be met with ease.