The Future of Sustainability Reporting
For years, ESG reporting was driven by forward-thinking companies. Today, a powerful wave of global regulations is making disclosure mandatory for all. This shift reflects growing demands for transparency and accountability from investors, consumers, and regulators.
Key European regulations
Several EU initiatives* are shaping the future of corporate reporting:
Corporate Sustainability Reporting Directive (CSRD): Requires detailed, audited sustainability reports based on the European Sustainability Reporting Standards (ESRS).
Sustainable Finance Disclosure Regulation (SFDR): Obligates financial market participants to disclose how sustainability risks are integrated into investment decisions, pushing ESG across the financial system.
EU Taxonomy: Defines what counts as “environmentally sustainable” economic activity, creating a common framework for sustainable finance.
Among these, CSRD is the most significant development in decades. Building on the earlier Non-Financial Reporting Directive (NFRD), it introduces far more rigorous requirements and makes sustainability reporting a mandatory part of annual financial reporting. Effective since January 2023, CSRD dramatically expands both the scope and level of detail companies must disclose.
Sustainability is no longer optional — it is a requirement for growth, resilience, and long-term competitiveness.
Who needs to comply?
The CSRD applies in phases, with requirements tightening over time:
2024: Large companies already under NFRD (≥500 employees, €50M+ turnover, or €25M+ assets).
2025: Companies meeting ≥2 of: ≥250 employees, €50M+ turnover, €25M+ assets.
2026: All other large EU companies (≥250 employees, €40M+ turnover, or €20M+ in assets).
2027: Listed SMEs (with an opt-out until 2028).
2029: Non-EU companies with significant EU turnover (≥€150M).
* Source: European Commission, Corporate Sustainability Reporting Directive (CSRD).
How K2 ESG Partners can help
We partner with your team to simplify compliance, strengthen credibility, and turn your sustainability journey into a competitive advantage.
Our Services
Building Sustainability from the Ground Up
Benchmarking against industry standards, ESG requirements, and GRI practices.
Designing a tailored sustainability roadmap and EU disclosure strategy.
Preparing annual sustainability reports in line with GRI and EU standards.
Strengthening Your Existing Strategy
Reviewing and validating the current strategy against GRI and EU requirements.
Identifying opportunities to improve transparency and visibility.
Practical recommendations to strengthen organisational and people practices.
Strategic ESG Advisory
Ongoing advisory support for leadership teams.
Training for HR and leadership teams on sustainability and people practices.
Embedding sustainability competencies across the organisation.