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# EU's CSRD starts to apply to first wave of companies for financial year 2024
- URL: https://www.theglobalbanker.com/eu-s-csrd-starts-to-apply-to-first-wave-of-companies-for-financial-year-2024/
- Published: 2024-01-01T05:00:00.000Z
- Updated: 2026-10-22T15:02:02.000Z
- Description: Large public-interest entities with more than 500 employees, including listed companies, banks and insurers, must now report under the European Sustainability Reporting Standards, with first reports due in 2025.
- Author: TGB Editorial Team
- Tags: ESG, Europe, #archive

The European Union's Corporate Sustainability Reporting Directive (CSRD) began applying on 1 January 2024 to its first wave of companies, which must report under the European Sustainability Reporting Standards (ESRS) for financial years starting on or after that date. The first reports are due to be published in 2025.

The first wave covers large public-interest entities with an average of more than 500 employees, a group that includes listed companies, banks and insurers and broadly corresponds to the companies already reporting under the earlier Non-Financial Reporting Directive. Directive (EU) 2022/2464 was adopted on 14 December 2022, published in the Official Journal on 16 December 2022 and entered into force on 5 January 2023\. Member states have until 6 July 2024 to transpose it into national law.

#### STANDARDS AND ASSURANCE

The ESRS, which set out the detailed disclosure requirements, were adopted by the European Commission by delegated act on 31 July 2023\. Under the directive, companies must report the information needed to understand both their impact on sustainability matters and how sustainability matters affect their development, performance and position.

The information must be included in a clearly identifiable, dedicated section of the management report and prepared in the EU's electronic reporting format. Sustainability reporting is also subject to external assurance, with an opinion on its compliance with EU requirements to be given on the basis of a limited assurance engagement.

#### LATER WAVES

Under the directive's timetable, the reporting obligation extends to all other large companies for financial years starting on or after 1 January 2025, and to listed small and medium-sized enterprises, other than micro-enterprises, from 1 January 2026, with listed SMEs able to opt out for financial years before 2028\. Certain non-EU companies with significant turnover in the EU come into scope for financial years starting on or after 1 January 2028.