Short answer:CSRD (Corporate Sustainability Reporting Directive) is an EU regulatory framework that requires more companies to report on sustainability according to common standards. You first need to find out if and when your business is covered, then start collecting the right data in time. Many smaller companies are indirectly affected by demands from larger customers and banks.

What is CSRD, briefly explained?

CSRD stands forCorporate Sustainability Reporting Directive, i.e. the EU directive on sustainability reporting. Think of it as a common language for how companies should talk about their impact on the environment, people and society. Instead of each company reporting in its own way, all must follow the same standards, so that the figures can be compared.

The reporting follows a framework known as ESRS (the European Standards). They cover three areas that are often abbreviated ESG: environment (Environment), social (Social) and governance (Governance).

Is my business covered?

This is the question most people want an answer to. CSRD is introduced in stages and affects different companies at different times depending on their size. Simplified, the threshold is about the number of employees, turnover and balance sheet total. Large companies and listed companies are first out, then more.

Important:the rules have been adjusted at EU level through the so-called Omnibus package, which, among other things, brought forward dates and was revised to ease the burden on smaller companies. Since the details can change, you should always check what applies right now and specifically to you with the Swedish Companies Registration Office and in the Swedish legislation, don't rely on a rule of thumb.

Our advice: don't assume you won't escape. Check your size against the current thresholds and, just as importantly, ask your biggest customers if they will require sustainability data from you.

Why are smaller companies also affected?

Many people miss the point here. Even if your business is too small to be covered directly, your largest customer may be covered. And for that customer to be able to report on hisvalue chain, i.e. its suppliers, it may need numbers from you: your energy consumption, your emissions, how you manage staff.

In other words, the requirement may come as a question in a procurement or supplier form, long before it becomes law for you. Those who have their data in order are easier to deal with.

What data do you need to start collecting?

It varies by business, but common building blocks are:

  • Energy:electricity, heat and fuel consumption.
  • Emissions:greenhouse gases, often divided into different categories (scope).
  • Travel and transport.
  • Staff:working environment, gender equality, sick leave.
  • Waste and material use.
  • Steering:policies, risk management, anti-corruption.

The point is to start collecting this structured already now. Data that has not been registered cannot be retrieved afterwards.

What do you actually need to do, step by step?

  • 1. Find out if and when you are covered.Check the thresholds against your business.
  • 2. Make a simple mappingof what data you already have and what is missing.
  • 3. Set procedures for collection.Who measures what, how often, where is it saved?
  • 4. Collect data in one placeinstead of in scattered spreadsheets.
  • 5. Compile the reportaccording to the standards that apply to you.
  • 6. Bring in expert supportwhere it gets technical, especially around emission calculations.

Common misunderstandings

This is only for big companies.Directly yes, indirectly no, the requirements spread via the value chain.

We will take it when the law comes into force.Then it is too late to collect historical data. The measurement must start before.

It's just an environmental project.No, CSRD also covers social and governance, not just climate.

That's how ZORC helps you

The difficulty with CSRD is rarely the will, but to get all the data in order. ZORC buildsESG dashboardsthat brings your sustainability data together in one place, making collection and reporting manageable instead of an annual nightmare. We help you map out what you need to measure and build the system that makes it easy. Do you want to know if CSRD affects you and how to get started? Get in touch and we'll sort it out together.