HOW TO COMPLY WITH CSRD REQUIREMENTS

It is vital for EU companies to fulfil the requirements of the EU Corporate Sustainability Reporting Directive (CSRD). Implementing these requirements can be a real challenge for many. At FORLIANCE, our aim is to help you to meet these new standards with confidence.

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WHAT HAS CHANGED

LATEST CSRD UPDATES: CHANGES TO ESRS AND EU SUSTAINABILITY REPORTING

Throughout 2025 and into early 2026, the European sustainability reporting landscape has undergone significant and structural changes. Following the European Commission’s Omnibus legislative proposal of 26 February 2025, the legislative process has resulted in deferrals to implementation timelines, a narrowing of the scope of application, and a substantial simplification of reporting requirements under the CSRD, the ESRS, the EU Taxonomy, and the CSDDD.
From a regulatory perspective, several key measures have been adopted, including the “Stop-the-Clock” directive, “quick fix” amendments for Wave 1 entities, a provisional agreement on the content of Omnibus I, and a delegated act simplifying the EU Taxonomy, which has now entered into force.

WHAT THE NEW CSRD RULES MEAN FOR SUSTAINABILITY REPORTING

The provisional agreement significantly reshapes the CSRD by narrowing its scope, increasing proportionality, and simplifying reporting requirements. Higher thresholds limit mandatory reporting to larger undertakings, while extended exemptions and transitional reliefs reduce duplication and administrative burden. A newly introduced value-chain cap restricts data requests from smaller suppliers, reinforcing proportionality across reporting value chains. Sector-specific standards are replaced by non-binding guidance, and additional flexibility is provided for group changes, sensitive information, and assurance requirements. Overall, the revised framework shifts the CSRD toward a more focused, materiality-driven and practicable reporting regime, while maintaining core transparency objectives.

HOW THE NEW CSRD RULES AFFECT YOUR COMPANY

The impact depends on whether your company falls within the revised scope of the CSRD. While many organizations will no longer be subject to direct reporting obligations due to higher thresholds, this does not mean sustainability requirements disappear altogether.
Companies outside the CSRD scope may still face indirect obligations, particularly through value-chain relationships with larger CSRD reporting customers, financial institutions, or strategic partners. Requests for climate- and sustainability-related information, especially on decarbonisation, emissions (ESRS E1), and transition planning, are likely to continue, albeit in a more proportionate and standardized form.
In addition, companies with strategic growth ambitions, international exposure, or voluntary decarbonisation targets may choose to maintain or develop sustainability disclosures to meet stakeholder expectations, support business relationships, and remain competitive in the evolving regulatory and market environment.
 

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OUR STRATEGY

FORLIANCE CLIMATE STRATEGY SERVICES FOR CSRD AND NET-ZERO GOALS

FORLIANCE supports companies in addressing climate-related requirements and expectations under the evolving European sustainability framework, with a strong focus on decarbonisation and value-chain engagement.

  • We calculate your greenhouse gas (GHG) emissions across Scope 1, Scope 2, and Scope 3, in line with the GHG Protocol and international best practices.
  • Together with you, we develop a climate action strategy, identifying emission reduction potentials across your operations and your supply chain, and defining clear and credible reduction targets.
  • We design a GHG reduction roadmap, aligned with the Science-Based Targets initiative (SBTi), supporting near-term targets and long-term net-zero ambitions.
  • We support supplier and value-chain engagement, helping you structure data requests, prioritise hotspots, and implement decarbonisation measures in a proportionate and pragmatic way.
  • We provide access to high-quality GHG removal projects to address currently unavoidable emissions, ensuring environmental integrity and transparency.
  • We identify and assess climate change related risks relevant to your business and value chain.
  • We analyse biodiversity-related topics within your supply chain, identifying risks and solutions to improve your biodiversity footprint.

YOUR BENEFITS AT A GLANCE:

Benefit from our deep-rooted expertise in climate and sustainability consulting, grounded in hands-on experience with carbon accounting, decarbonisation strategies, and sustainability reporting aligned with leading international standards.

Through focused and practical workshops, we translate CSRD requirements into concrete actions, with a strong emphasis on ESRS E1 (climate change) and its implications for emissions, targets, and transition planning.

We develop customised solutions that reflect your company’s specific context, maturity level, and strategic priorities ensuring sustainability efforts deliver measurable impact rather than generic compliance.

Our modular service offering allows you to select exactly the support you need, from single building blocks to end-to-end climate programmes, fully aligned with your sustainability and decarbonisation goals.

We prepare your organisation to meet ESRS E1 requirements in a pragmatic and future-proof way, integrating emissions data, reduction pathways, and value-chain engagement.

You receive a structured and prioritised roadmap, defining next steps, responsibilities, and timelines supporting informed decision-making and positioning your company as a credible climate actor.

Prepare for the CSRD regulations

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Milan Pal, Manager Partnerships Climate Solutions
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OUR APPROACH

HOLISTIC CLIMATE STRATEGY

Measure your carbon footprint

Start by understanding your company’s climate impact through a comprehensive assessment of greenhouse gas emissions. This analysis serves as a crucial foundation for all future climate initiatives.

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Set reduction targets

Once you understand your emissions, you have a solid foundation to set strategic, ambitious reduction targets. We support you in developing science-based targets aligned with 1.5°C.

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Reduce your carbon footprint

Implement solutions that boost efficiency, embrace renewable energy, and reduce emissions across your supply chain. These measures reduce your environmental impact and create a path to impactful change.

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Finance climate action

Invest in impactful carbon projects that extend beyond your value chain to compensate for your unavoidable emissions. This includes financing initiatives that generate wider environmental benefits and support global climate goals.

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Communicate and lead

Engage stakeholders by sharing your company’s climate vision. Transparent communication drives corporate responsibility and sets a benchmark for others to follow in the climate action journey.

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What is double materiality under CSRD and is it mandatory?

Double materiality under the CSRD is the central logic that determines what a company must report and how deeply each topic needs to be addressed. It acts as the filter between everything that could be reported and what is actually required in the sustainability statement.
At its core, double materiality means that a topic is considered material if it is significant from at least one of two perspectives.
The first is impact materiality. This looks outward and asks how a company’s activities affect people and the environment. It covers both actual and potential impacts, as well as positive and negative effects, across the entire value chain.
The second is financial materiality. This looks inward and focuses on how sustainability-related is-sues influence the company’s financial performance, financial position, and future development over time.
Under the CSRD and the ESRS, companies identify sustainability topics by mapping their impacts, risks, and opportunities (IROs) and then assess them through both lenses. If a topic is found to be material from either an impact or a financial perspective, it must be treated as material for report-ing purposes.

What are the European Sustainability Reporting Standards (ESRS)?

The ESRS (European Sustainability Reporting Standards) are the mandatory reporting standards for CSRD, the single language with which in-scope companies must prepare the sustainability statement. Developed by EFRAG and adopted by the European Commission through delegated acts, they comprise 12 standards: 2 cross-cutting (ESRS 1 on general requirements and double materiality, ESRS 2 on general disclosures for all) and 10 topical (E1-E5 environment, S1-S4 social, G1 governance). Since 2025, "quick fix" simplifications have eased certain transitional disclosures on biodiversity and social value chain for the first few years.
For SMEs outside the CSRD scope, the voluntary VSME (Voluntary Sustainability Reporting Standard for SMEs) standard exists, recommended by the Commission in July 2025. It is a simplified, proportional framework with two modules – Basic (key metrics) and Comprehensive (more detailed) applicable only to relevant disclosures ("if applicable"), with no mandatory audit. It helps SMEs standardize ESG responses to clients, banks and investors, facilitating green finance and supply chains.

From when does CSRD reporting apply to my company?

The ESRS (European Sustainability Reporting Standards) are the mandatory reporting standards for CSRD, the single language with which in-scope companies must prepare the sustainability statement. Developed by EFRAG and adopted by the European Commission through delegated acts, they comprise 12 standards: 2 cross-cutting (ESRS 1 on general requirements and double materiality, ESRS 2 on general disclosures for all) and 10 topical (E1-E5 environment, S1-S4 social, G1 governance). Since 2025, "quick fix" simplifications have eased certain transitional disclosures on biodiversity and social value chain for the first few years.
For SMEs outside the CSRD scope, the voluntary VSME (Voluntary Sustainability Reporting Standard for SMEs) standard exists, recommended by the Commission in July 2025. It is a simplified, proportional framework with two modules – Basic (key metrics) and Comprehensive (more detailed) applicable only to relevant disclosures ("if applicable"), with no mandatory audit. It helps SMEs standardize ESG responses to clients, banks and investors, facilitating green finance and supply chains.

How does CSRD relate to the EU Taxonomy?

CSRD and the EU Taxonomy are interconnected pillars of the EU's sustainable finance framework, with CSRD requiring companies to report Taxonomy alignment as a core ESG disclosure.

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FORLIANCE GmbH
+49 (0) 228-969 119 – 0
info@forliance.com

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53119 Bonn
Germany