CSRD requires in-scope companies to report sustainability information under the European Sustainability Reporting Standards (ESRS), with limited assurance from day one.
Who it affects
- EU large undertakings (≥250 employees / €50m turnover / €25m balance sheet)
- EU-listed SMEs (from FY2026, with opt-out to FY2028)
- Non-EU groups with significant EU activity (from FY2028)
Key obligations
- Double-materiality assessment across impact and financial materiality
- ESRS-compliant disclosures on environment, social and governance topics
- Value-chain data collection from suppliers and partners
- Limited assurance (moving to reasonable assurance over time)
Penalties
Member-state level — typically administrative fines, director liability and exclusion from public procurement.
How RisQo helps
RisQo's ESG and Supplier modules pre-collect value-chain disclosures, sector benchmarks and controversy signals to accelerate CSRD readiness and reduce supplier-survey fatigue.
This explainer is provided for informational purposes only and does not constitute legal advice. Always consult qualified counsel before making compliance decisions.