New CSRD directive: mandatory sustainability reporting for companies
The CSRD requires companies to report on their sustainability. This European directive is part of a broader movement towards transparency and corporate responsibility. The content and impact of the CSRD are evolving. With the recent Omnibus proposal, the European Commission even wants to partially relax the application of the legislation. In this blog, we explain what the CSRD entails, its current status and what it means for packaging companies like SFA Packaging.
What does the CSRD mean?
The CSRD (Corporate Sustainability Reporting Directive) is the successor to the NFRD and imposes stricter obligations on companies around sustainability reporting. Instead of voluntary or separate reports, there is now an obligation to publish structured information on environmental policy, social issues and governance. The aim is to give investors, customers and other stakeholders a clear picture of an organisation's sustainability impact and strategy.
Consequences of the Omnibus proposal
In February 2025, the European Commission presented the Omnibus Proposal, which proposed changes to the CSRD and CSDD. Among other things, this proposal changes the timelines, target group and scope of the reporting obligation. For instance, it delays implementation for some companies and reduces requirements for medium-sized enterprises. The proposal is still before the European Parliament for consideration, but it has potentially major implications for the planning and content of sustainability reports. Companies would be wise to monitor these developments closely.
What must be reported?
The CSRD requires companies to report on both positive and negative impacts of their activities on people and the environment. The focus is on material impact, but financial risks and opportunities arising from sustainability issues must also be identified. No final standard format has yet been established. However, there is a set of European sustainability standards (ESRS) that specify by topic what companies must report on. These include carbon emissions, water use, human rights, diversity, governance structures and policies around ethical business practices.
How do you achieve CSRD compliance?
Companies that need to comply with the CSRD take several steps to do so. A clear strategy is the starting point. The company's sustainability goals should align with the themes from the ESRS. This is followed by collecting ESG data: carbon emissions, energy consumption, waste flows and social impact, among others. This data is incorporated into a report that aligns with European standards. Finally, an independent auditor must assess the content to ensure reliability.
What does SFA Packaging do for you?
SFA Packaging measures its own ESG data which forms the basis for our sustainability reporting in accordance with the CSRD. We use this reporting to provide insight into our environmental impact and our efforts on circular packaging solutions. Transparency about our packaging materials, production processes and strategic goals is the starting point. By measuring and reporting structurally, we strengthen our position as a partner for companies that want to operate in a future-oriented way. In doing so, we can also meet information requests that arise within our chain of customers and suppliers.
Sustainability as an integral part of business operations
The CSRD emphasises the importance of structural policies around sustainability. Companies must link their strategy to concrete performance. For SFA Packaging, sustainability is not a separate issue, but part of everyday practice. Our packaging is designed with attention to material use, recyclability and logistics optimisation. In this way, we contribute to a circular economy, while meeting current and expected reporting requirements.
Frequently asked questions about CSRD
What is the CSRD?
The CSRD is a European directive that requires companies to publish sustainability information. It focuses on environmental, social issues and governance, including risks, opportunities and strategies.
What is the Omnibus Proposal and what will change?
The Omnibus Proposal is an amending proposal from the European Commission that adjusts parts of the application of the CSRD. Among other things, it delays implementation dates and limits reporting obligations for certain companies. Its content is still under discussion.
Who does the CSRD apply to?
The CSRD applies to listed companies, large corporations and soon certain medium-sized companies. The exact application depends on turnover, balance sheet and staff size as well as on the final version of the Omnibus proposal.
What do I have to report according to the CSRD?
Companies report on their impact on the environment and society, as well as the impact of sustainability on business operations. Think about emissions, waste, governance, human rights and diversity.
Is there already a fixed format available for reporting?
No, there is no final reporting format yet. Reporting must be based on the ESRS themes, which have been drawn up by EFRAG (European Financial Reporting Advisory Group).
