Promotional products companies doing business in Europe must be compliant with the Corporate Sustainability Reporting Directive – a regulation introduced by the European Union to enhance the transparency and accountability of companies with respect to their sustainability practices.

  • The CSRD significantly expands the existing Non-Financial Reporting Directive.
  • This expansion will affect nearly 50,000 companies in the EU, a significant increase from the 11,700 companies covered under the NFRD.


Aligning with the EU’s Green Deal and transition to a sustainable economy, the CSRD aims to help investors, consumers, policymakers and other stakeholders assess the sustainability performance and risks of businesses.

The CSRD applies to all large companies with operations in the EU that meet two of the following:

  • €40 million in net turnover
  • €20 million in assets
  • 250 or more employees


It also applies to listed small and medium-sized companies and non-EU companies generating over €150 million in annual revenue in the EU.

CSRD Requirements

Companies must report on environmental, social, and governance matters, including climate change and emissions, diversity and inclusion, human rights and anti-corruption practices.

Sustainability reporting requirements include Scope 1, 2, and 3 emissions; energy consumption and intensity; waste generation, treatment and disposal; circular economy initiatives; resource efficiency metrics; water consumption and intensity metrics and water recycling and reuse initiatives.

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The reports must reflect the impact of sustainability issues on the company’s financial performance as well as the company’s impact on people and the environment.

Corporate social responsibility reporting requirements include incident rates (e.g., injuries, fatalities); safety training programs and their effectiveness; fair labor practices across operations and supply chain; workforce diversity metrics; pay equity analysis; and inclusion initiatives and their outcome.

According to business services provider Sedex, which specializes in compliance, here are the challenges that companies can expect:

  • Complex data collection across global operations and supply chains
  • Initial costs of implementing new systems and processes
  • Potential disclosure of competitively sensitive information
  • Aligning sustainability reporting with financial reporting timelines


However, there are opportunities for companies to benefit from complying with the CSRD:

  • Advancing sustainable manufacturing processes
  • Strengthening brand trust and stakeholder relationships
  • Optimizing resource use and operational costs
  • Attracting sustainability-focused investors


Implementation Timeline

Reporting deadlines are already rolling for CSRD:

  • Companies already subject to NFRD must report in 2025 on FY 2024 data.
  • Large companies not previously subject to NFRD must report in 2026 on FY 2025 data.
  • Listed small and medium-sized businesses must begin reporting in 2027 (with an opt-out until 2028).
  • Non-EU companies with significant EU activity must also report.