CSR reporting obligation: Your complete guide for companies

The new CSR reporting obligation: what is changing

CSR reporting has become an integral part of today’s business world. It places sustainability reporting on the same level as financial reporting. This means that companies must document and disclose their sustainability activities just as carefully as their finances. This change affects large corporations and increasingly also medium-sized companies.

In Germany, the CSR reporting obligation is being extended by the new Corporate Sustainability Reporting Directive (CSRD). From January 1, 2025, the directive will apply to large companies that meet at least two of the following criteria: more than 250 employees, over 50 million euros in revenue or a balance sheet total of over 25 million euros. The first report in accordance with these new standards is scheduled for the 2025 financial year and will be published in 2026.

More information on the CSRD is available from the IHK Munich. The new regulation increases transparency with regard to the environment, social issues, employee concerns, human rights and the fight against corruption.

What does this mean for your company?

The new CSR reporting obligation requires companies to comprehensively record and transparently present their sustainability activities. It is not just a matter of collecting data and producing reports. Rather, companies must align their entire strategy with sustainability goals. For many, this means adapting internal processes and systems.

Opportunities and challenges

The CSR reporting obligation brings challenges, but also opportunities. Systematically addressing sustainability can improve corporate performance.

• Identify risks and opportunities: By analyzing sustainability risks and opportunities, companies can increase their resilience.
• Developing new business models: Sustainability can be an inspiration for innovative and future-proof business models.
• Strengthening trust: Transparent reporting strengthens the trust of investors, customers and employees.

From a must to a competitive advantage

Some companies are already using the CSR reporting obligation to set themselves apart from the competition. They understand that sustainability is not a cost burden, but an investment in the future.

• Brand strengthening: Sustainable action strengthens the brand and the corporate image.
• Opening up new markets: Sustainability can open doors to new markets and customer groups.
• Attracting talent: A sustainable company is more attractive for qualified specialists.

Companies like Click A Tree can help with the integration of sustainability aspects. A strategic approach to CSR reporting is the key to success. It is about turning the obligation into an opportunity for further development.

Affected or liberated? The new reality for your company

The infographic illustrates the most important stages of the CSR reporting obligation: from the introduction of the EU Directive in 2014 to the entry into force of the CSR-RUG in 2017 and the planned revision in 2025. This development underlines the growing focus on sustainability and the increasing importance of transparent reporting.

The CSR reporting obligation is affecting more and more companies. For many, the question arises: are we affected or not? The answer depends on various factors, such as company size, legal form and sector. The new sustainability reporting will affect an estimated 15,000 companies in Germany. This corresponds to around 30% of all companies affected by the CSRD in the EU.

This directive extends the reporting obligations not only to large companies, but also to capital market-oriented SMEs and certain financial institutions. From January 1, 2026, these companies will also have to prepare sustainability reports. Capital market-oriented SMEs can be exempted until 2028 under certain conditions. You can find more information on sustainability reporting here.

Criteria for the reporting obligation

The criteria for the reporting obligation are complex. Put simply, large capital market-oriented companies as well as certain SMEs and financial institutions are affected. The exact criteria are set out in the CSRD.

• Large companies: Companies with more than 500 employees, a turnover of more than 40 million euros or a balance sheet total of more than 20 million euros.

• Capital market-oriented SMEs: SMEs whose securities are traded on a regulated market.

• Financial institutions: Certain banks, insurance companies and investment companies.

The following table provides an overview of the reporting obligations over time:

CSR reporting obligation over time: Who reports when?

This overview shows precisely which types of companies must carry out their first reporting and when

Type of company	First reporting year	Publication of report	Applicable criteria
Large capital market-oriented companies	2024	2025	> 500 employees, > € 40 million turnover or > € 20 million balance sheet total
Capital market-oriented SMEs	2026	2027	Securities traded on a regulated market
Certain financial institutions	2026	2027	Specific criteria according to CSRD

The table illustrates the gradual introduction of the reporting obligation and the different start dates for the various types of companies.

Special features for SMEs

The CSR reporting obligation poses a new challenge for SMEs in particular. Many companies of this size are confronted with such requirements for the first time. It is important to obtain information at an early stage and plan the necessary resources. Click A Tree supports companies in measurably achieving their ESG goals and CSR measures and simplifying their reporting.

Preparation for the reporting obligation

Good preparation is crucial. Companies should address the requirements of CSRD at an early stage and draw up a clear plan.

• Self-assessment: Check whether your company is affected by the reporting obligation.

• Resource planning: Ensure that sufficient human and financial resources are available.

• Data collection: Start collecting the relevant data at an early stage.

• Expert advice: Consult experts if necessary.

CSR reporting is more than just a legal obligation. It offers the opportunity to promote sustainability within the company and make a contribution to a sustainable future. A strategic approach can create competitive advantages and strengthen the company’s image.

The new ESRS standards: More than just following the rules

The European Sustainability Reporting Standards (ESRS) form the basis of the new CSR reporting obligation. They stipulate which sustainability information companies must disclose. However, the ESRS offer more than just a legal framework. They give companies the opportunity to strategically manage and continuously improve their sustainability performance. The aim is to achieve transparency and comparability in sustainability reporting.

The tightening of CSR reporting obligations has a noticeable impact on companies. The Corporate Sustainability Reporting Directive (CSRD) puts sustainability reporting on the same level as financial reporting. This means that from the 2025 financial year, companies will have to report on CSR aspects in much greater detail. Find out more about the stricter CSR reporting requirements. The ESRS developed by the EU Commission support these guidelines. They define the necessary information for transparent environmental, social and governance reports.

Double materiality: The core of the ESRS

The central concept of ESRS is dual materiality. It considers both the impact of the company on the environment and society (inside-out perspective) and the impact of environmental and social factors on the company (outside-in perspective).

For example, a company operating in a water-scarce region must not only disclose its water consumption. It must also assess the risks to the company from water scarcity. This holistic approach helps companies to identify risks and opportunities in the area of sustainability at an early stage and to act strategically.

The ESRS reporting fields at a glance

The ESRS cover a wide range of sustainability topics: from climate change and environmental pollution to social responsibility and human rights to corporate governance and control. The modular structure of the standards allows companies to select the relevant topics for their specific context.

To help you better understand the various aspects of ESRS, you will find an overview table here:

The following table “ESRS in detail: How to master each reporting area” provides an overview of the core elements of the standards and gives you practical orientation.

Subject area	Core aspects	Required key figures	Special challenges
Climate change	Greenhouse gas emissions, climate change risks	CO2 footprint, Scope 1, 2 and 3 emissions	Data collection and quality, dealing with uncertainties
Environmental pollution	Emissions, waste water, waste	Water consumption, amount of waste	Measurability and comparability of data
Social responsibility	Working conditions, human rights	Employee satisfaction, accident rate	Ensuring data quality along the supply chain
Corporate governance	Compliance, risk management	Number of violations of the Code of Conduct	Integration of sustainability aspects into corporate governance

This table illustrates the complexity of the ESRS and the need for a systematic approach to sustainability reporting.

ESG data: the key to corporate management

The systematic collection of ESG (environmental, social and governance) data is essential for the implementation of the ESRS. However, data collection also offers the opportunity to optimize corporate management. By analyzing ESG data, companies can deploy their resources more efficiently, minimize risks and discover new business opportunities. In addition, the transparent presentation of ESG performance strengthens the trust of investors, customers and other stakeholders.

Competitive advantages through ESRS

Leading companies see the ESRS not as a burden, but as an opportunity. They use the standards to improve their sustainability strategy and stand out from the competition. By implementing the ESRS at an early stage, companies can proactively shape their CSR reporting obligations and position themselves as pioneers in the field of sustainability. Platforms such as Click A Tree offer support in the implementation of sustainability measures and the achievement of ESG goals. This turns CSR reporting from a mandatory program into a competitive advantage.

Tried and tested implementation strategies for your CSR reporting obligation

The CSR reporting obligation presents many companies with new challenges. However, with the right strategies, it can be mastered efficiently. This section offers you a practical 12-month roadmap based on the experience of sustainability managers and compliance experts. In this way, the CSR reporting obligation will not become an obstacle, but an opportunity for your company.

The 12-month roadmap: Step by step to successful implementation

A structured roadmap helps you to maintain an overview and systematically tackle the CSR reporting obligation.

• Month 1-3: Inventory and planning: Analyze your current situation. Identify the relevant ESRS standards for your organization and define clear goals and responsibilities within the project team. Click A Tree can support you in taking stock and help you define your sustainability goals.

• Month 4-6: Data collection and analysis: Implement appropriate systems to collect the necessary ESG data. Analyze the data and identify potential risks and opportunities.

• Month 7-9: Report preparation: Create the first draft of your sustainability report. Pay attention to the requirements of the ESRS and the disclosure requirements.

• Month 10-12: Review and publication: Have your report reviewed by an independent third party. Publish the report and communicate your sustainability performance transparently to your stakeholders. Click A Tree can help you to present your sustainability activities transparently and thus strengthen the trust of your stakeholders.

Key positions in the project team

A successful project team needs clear roles and responsibilities.

• Project management: Manages the entire project and monitors adherence to the schedule.

• Data collection: Is responsible for the collection and preparation of ESG data.

• Report preparation: Prepares the sustainability report and ensures compliance with ESRS standards.

• Communication: Communicates the company’s sustainability performance internally and externally.

Effective data collection methods

Reliable data forms the basis for a meaningful sustainability report.

• Automated systems: Software solutions for automated data capture save time and resources.

• Manual collection: Manual collection may be necessary for certain data.

• Combination of both: A combination of automated systems and manual collection is often the most effective solution. Click A Tree offers you scalable solutions for collecting and presenting your sustainability data.

Integration into existing management systems

The CSR reporting obligation should not be viewed in isolation, but should be integrated into existing management systems.

• Quality management: Integrate sustainability aspects into your quality management.

• Risk management: Evaluate sustainability risks and develop appropriate measures.

• Environmental management: Link your environmental goals with the requirements of the CSR reporting obligation.

Best practices and stumbling blocks

Learn from the experience of other companies.

• Best practice: One company has successfully integrated the CSR reporting obligation into its existing risk management system.

• Stumbling block: Another company underestimated the effort required for data collection.

Use existing sustainability initiatives. Build on existing structures and integrate them into the new reporting architecture. Click A Tree supports you in optimizing your sustainability activities and adapting them to the requirements of the CSR reporting obligation. This turns CSR reporting from a mandatory program into a strategic advantage.

From mandatory program to competitive advantage: the strategic dimension

The CSR reporting obligation is often perceived as an annoying bureaucracy. Yet it has enormous strategic potential. More and more companies are recognizing that transparent sustainability reports can be a real competitive advantage and contribute to long-term success. In this section, you will find out how you can use the CSR reporting obligation strategically for your company and achieve measurable benefits.

Capital procurement, customer acquisition and employee retention

Sustainability is an increasingly important criterion for investors. Transparent ESG reporting is therefore often crucial for raising capital. It demonstrates a sense of responsibility and stability.

Customers are also paying more and more attention to sustainable products and services. Companies that disclose their sustainability performance strengthen their brand and customer confidence.

Last but not least, sustainability also plays a major role in employee recruitment. A credible commitment to CSR makes a company more attractive to qualified specialists.

Innovation drivers and risk management

Addressing sustainability aspects as part of the CSR reporting obligation can promote innovation. New business models and sustainable products are created by analyzing ESG data.

The CSR reporting obligation also enables effective risk management. Sustainability risks can be identified and assessed at an early stage, which strengthens the company’s resilience. The reporting obligation thus becomes an early warning system.

Monetization of sustainability reporting

The benefits of the CSR reporting obligation can also be measured in figures. Sustainable companies often benefit from better supplier conditions. They can improve their energy efficiency and reduce costs.

New business opportunities arise from the development of sustainable products and services. With Click A Tree, you can automate your sustainability activities and make them measurable. This optimizes your ESG performance and increases ROI at the same time.

Strategic planning with framework templates

Strategic use of the CSR reporting obligation requires careful planning. Framework templates help you to define your sustainability goals and structure measures.

Analyze your industry and the relevant ESG criteria. Develop a roadmap for the implementation of your sustainability strategy. Integrate the CSR reporting obligation into your corporate processes.

Click A Tree supports you in the strategic planning and implementation of your sustainability goals. This turns CSR reporting from an obligation into an opportunity that creates long-term competitive advantages. From optimizing the supply chain to developing new business models – the strategic dimension of CSR reporting offers a wide range of opportunities.

Overcoming hurdles: How to solve the biggest implementation problems

The implementation of the CSR reporting obligation poses challenges for many companies. Medium-sized companies in particular often struggle with difficulties. This section highlights the most common problems and shows you pragmatic solutions. With Click A Tree, you can effectively overcome these hurdles and successfully master the reporting obligation.

Data availability: the key to transparency

One of the main challenges is the availability of the required data. This data is often not recorded centrally or is scattered across different systems. This makes data collection time-consuming and error-prone.

• Solution: The implementation of a central data management system provides a remedy. Click A Tree offers you scalable solutions for recording and clearly presenting your sustainability data.

Lack of resources: efficiency through automation

Many companies complain about a lack of human and financial resources. Collecting and analyzing data ties up valuable working time and incurs costs.

• Solution: Automate data collection and analysis. Click A Tree helps you to automate your sustainability activities and make them more efficient. This saves time and money.

Lack of expertise: competence through further training

Companies often lack internal expertise in the area of sustainability and reporting. The ESRS standards are complex and require specialized knowledge.

• Solution: Qualify your employees through targeted training or get external support. Click A Tree offers you comprehensive advice and training on all aspects of CSR reporting.

Implementation costs: Effective budget planning

Implementing new systems and processes can be costly. For medium-sized companies with a limited budget, this can be a major hurdle.

• Solution approach: Careful budget planning and prioritization of the most important measures are crucial here. Click A Tree offers cost-effective solutions that can be customized to your needs.

External support: making the right choice

External consultants can provide valuable support in implementing the CSR reporting obligation. Choosing the right partner is crucial for success.

• Solution approach: Pay attention to the expertise and experience of the consultant. Click A Tree is your reliable partner and accompanies you from data collection to report preparation. This turns the CSR reporting obligation from a challenge into an opportunity.

Your roadmap for success: Next steps to CSR excellence

This section provides you with a concrete action plan for a successful start to strategic CSR reporting. We have summarized the most important findings in a clear implementation plan with milestones and quick wins. Learn how to integrate CSR reporting into a holistic sustainability management system that delivers measurable results.

First steps and quick wins

Start by taking stock of your current sustainability activities. What measures are already in place? Where do you see potential for improvement? This analysis forms the basis for your CSR strategy.

Quick success can often be achieved by optimizing internal communication. Inform your employees about your sustainability goals and actively involve them in the process.

Checklists for different company sizes

The requirements for CSR reporting vary depending on the size of the company.

• Small and medium-sized enterprises (SMEs): Concentrate first on the essential ESRS standards and select key figures that are relevant to your company.

• Large companies: Implement a comprehensive sustainability management system and use software solutions for automated data collection.

Success indicators and timetables

Define clear success indicators to measure the progress of your sustainability activities. Examples include reducing greenhouse gas emissions, improving employee satisfaction or increasing the proportion of sustainable products.

Create a realistic timeline for the implementation of your CSR strategy and set specific milestones. Click A Tree supports you with scalable solutions and automated processes in implementing your sustainability goals and fulfilling your CSR reporting obligations. This not only makes you compliant, but also future-proof. With Click A Tree, you can measurably achieve your ESG goals and increase your customer loyalty, sales and brand value at the same time.

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