Before you pop the corks: No, it isn’t! However, the rumor mill is churning in Berlin and among auditors and consultants. Although the EU’s Corporate Sustainability Reporting Directive (CSRD) was supposed to be incorporated into German law by July 6, 2024, this has not yet happened. By the end of October 2024, confusion still reigns, with rumors of a possible delay circulating. The bottom line, however, is that uncertainties remain, and companies still lack reliable legal guidance.
The sluggish implementation is causing plenty of frowns—or, as the bureaucrats would put it, “delays.”
A recent federal government hearing revealed numerous unresolved issues: business associations, trade unions, and even auditors are all calling for adjustments. Issues include deadlines, bureaucracy, employee representation, and the big question: “When will we finally have clear guidelines?”
Despite all these uncertainties, one thing remains certain: The CSRD is coming, whether we’re ready or not. While large corporations and the German Chamber of Industry and Commerce (DIHK) are lobbying for extended transition periods, small and medium-sized enterprises (SMEs) cannot afford to sit back.
There may still be no concrete national guidelines, but this does not change the fact that the European Sustainability Reporting Standards (ESRS) are in place. These standards lay the groundwork for the new sustainability reporting requirements and apply to all companies covered by the CSRD—regardless of Germany’s final stance. A core element is the double materiality assessment, making swift action essential.
While policymakers continue to hash out the details, companies should not remain idle. Now is the time to take the CSRD and ESRS requirements seriously and start preparing. Waiting for the final national legislation may lead to a time crunch.
With our flexible software solutions like ID-Report and ID-Supplier, we offer tools that not only address current requirements but are also adaptable to future changes. Our systems align seamlessly with ESRS standards, allowing you to collect, document, and report all necessary information efficiently and transparently.
Uncertainties aside, time is of the essence. Begin your materiality analysis today to ensure your company is fully prepared for the CSRD. Contact us to learn more about our consulting services and software solutions. Together, we’ll make sure you meet all legal requirements and create sustainable value for your company.
So, no—the CSRD won’t be canceled! Regardless of whether and how the specifics will be clarified for Germany—who will review the reports, submission deadlines, or any topics that may be postponed again—materiality analysis is the starting point you need right NOW.
The new EU disclosure regulation, the Corporate Sustainability Reporting Directive (CSRD), places high demands on the reporting of companies in the area of sustainability.