What is CSRD?
The Corporate Sustainability Reporting Directive (CSRD) is part of the Green Deal, the European Union’s plan to become the first climate-neutral continent by 2050 and to protect human rights.
This legislation requires companies to prepare a sustainability report. In this report, they must explain what risks they have identified, what they are doing to address them, and how they plan to improve.
At each step in their supply chain, companies must demonstrate the risks related to the environment, human rights, and good governance, also known as ESG report (Environmental, Social, Governance).
The most significant and likely risks must be included, especially if they could damage the company’s reputation.
But the CSRD also presents opportunities: it helps companies to look ahead, work more sustainably, and be stronger in the future.
Companies with more than 500 employees, reporting on the 2024 financial year.
Companies meeting the following criteria for the 2025 financial year:
- over 250 employees
- more than €50 million in annual turnover
- more than €25 million in total assets
All listed SMEs, for the 2026 financial year.
Non-European companies with European subsidiaries and more than €150 million in EU turnover, for the 2028 financial year.
These timelines may still change due to the Omnibus proposal.
What is the role of GS1?
A major part of sustainability reporting is based on reliable product data.
As a neutral and international organisation, GS1 supports the creation of uniform rules for capturing and sharing product data. This allows GS1 to play a key role in ensuring consistency of data definitions and calculation methods.
GS1 develops a common language that can be used worldwide.
This helps companies to work better together, and to streamline product data flows, making the supply chain more transparent.