CSRD criteria: scope thresholds and reporting requirements

Understanding the CSRD criteria

The CSRD is the European directive framing corporate sustainability reporting. It harmonizes ESG disclosure in Europe with an unprecedented rigor: integration into the management report, mandatory external assurance and a double materiality methodology. For the broader picture, see the CSRD directive.

Scope criteria: who is subject to the CSRD

Scope is defined by three thresholds from the EU Accounting Directive 2013/34/EU: balance-sheet total, net turnover and average headcount. A company is in scope if it exceeds at least two of the three. Subsidiaries of an in-scope group can also be covered through consolidation. See who is concerned by the CSRD.

Small companies remain outside the mandatory scope for now, but can draw on the voluntary VSME standard, aligned with CSRD/ESRS logic but lighter.

Content criteria: the ESRS standards

The ESRS define the precise content of the sustainability report, across 12 topics in three pillars:

• Environment (E): climate (ESRS E1), pollution (E2), water (E3), biodiversity (E4), resource use (E5). Indicators include GHG emissions (Scopes 1-3) and transition plans.
• Social (S): working conditions, human rights, diversity, health and safety, training.
• Governance (G): ethics policies, oversight structure, risk management and anti-corruption.

Double materiality: the core criterion

The CSRD requires a double materiality analysis: impact materiality (how the company affects society and the environment) and financial materiality (how sustainability issues affect economic performance). This structured assessment makes reports more relevant and comparable across the EU.

Assurance and data reliability

Each CSRD report must be audited by an independent third party. This requires solid internal collection and verification procedures, traceable and documented data, and preserved evidence and methodologies (e.g. GHG protocols). Companies should organize their sustainability governance and formalize a validation process similar to financial accounts, feeding overall non-financial reporting.

Preparing for CSRD compliance

Preparation rests on four levers: clear governance, regular data collection aligned with the ESRS, robust internal controls, and audit readiness via pilot self-assessments. A unified ESG management platform keeps indicators consistent and simplifies annual updates and requests from other frameworks (EcoVadis, CDP, ESRS).

CSRD criteria: key takeaways