The Corporate Sustainability Reporting Directive (CSRD) timeline matters even for US companies. CSRD is a new rule that will change how companies report their sustainability practices. It was created by the European Union (EU) and applies mainly to EU companies, but many US companies are also affected. If your business operates in Europe or you have partnerships or suppliers, you’ll need to know how the CSRD impacts you. The CSRD timeline for US companies outlines key deadlines for compliance with sustainability reporting requirements.
This guide breaks down the CSRD timeline for US companies so you can stay prepared. We’ll review the key dates, who is affected, and what to expect at each step. Being ready early can save your company time and trouble later.
What Is the CSRD?
The CSRD is an updated EU law that requires companies to report on how they affect the environment, society, and their own governance. This kind of reporting is known as ESG reporting (Environmental, Social, and Governance). The CSRD replaces the old Non-Financial Reporting Directive (NFRD), and it brings many changes that make the rules stricter and apply to more companies.
For example, under the old NFRD, only about 11,700 companies in the EU had to report their ESG data. However, with the CSRD, around 50,000 companies will need to follow the new rules.
Why Does the CSRD Matter for US Companies?
You might wonder why a European law matters to US companies. If your company does business in Europe, sells products there, or has partners in the EU, you will likely need to follow these rules. Even US companies with European investors may need to comply with the CSRD.
For companies outside the EU, the CSRD applies if:
- You have subsidiaries or branches in the EU.
- You have a significant amount of sales or revenue coming from the EU.
- You are listed on EU stock exchanges.
Failing to comply could lead to fines, bad press, or losing meaningful business relationships in Europe.
Key Dates in the CSRD Timeline for US Companies
Let’s look at the most important dates for the CSRD that US companies should keep in mind.
1. January 2024: First Phase Begins
The CSRD will first apply to companies that are already reporting under the old NFRD rules. These are mostly large companies in the EU, but if you are a US company that had to follow the NFRD before, you will need to prepare for this new reporting by 2024.
What to do: If you already report ESG data under the NFRD, prepare for the CSRD requirements now. These will be stricter, with more detailed disclosures on environmental impact, human rights, and governance practices.
2. January 2025: Larger Companies
By 2025, the CSRD will apply to all large companies in the EU, even those that did not have to report under the NFRD. This includes US companies with a strong presence in Europe.
What to do: If your company falls into this group, you should prepare by assessing your current ESG data and building a strategy to meet the new standards. If you haven’t already reported ESG data, now is the time to start.
3. January 2026: Smaller Companies and Other Global Companies
In 2026, the rules will apply to all listed SMEs (Small and Medium Enterprises) in the EU and non-EU companies with significant business in the EU. This date will most likely affect many US companies.
What to do: If you are a US company doing business in Europe but haven’t been required to report ESG data before, this will be your deadline. You should start by understanding the CSRD reporting requirements and gathering data on your company’s environmental and social impacts.
How to Prepare for CSRD Compliance
Here are some tips to help US companies get ready for CSRD compliance.
1. Understand the Reporting Standards
The CSRD will follow standards developed by the European Financial Reporting Advisory Group (EFRAG), which are called the European Sustainability Reporting Standards (ESRS). These standards provide guidance on what information companies must include in their reports.
You’ll need to report on:
- Your company’s impact on the environment.
- Your impact on society, including employees and communities.
- How well is your company governed, and how are decisions made?
2. Start Collecting Data Early
One of the biggest challenges of CSRD compliance will be gathering all the necessary data. Start collecting information on your company’s carbon emissions, water use, waste production, labor practices, and governance policies now. This will help you meet the reporting deadlines without scrambling at the last minute.
3. Work with Your European Subsidiaries or Partners
If your company has branches in the EU or works closely with European companies, start talking to them about the CSRD. Ensure everyone is on the same page about who will be responsible for reporting and what data needs to be collected.
4. Invest in ESG Reporting Tools
Many companies are turning to software solutions to help manage their ESG data. These tools can make tracking your environmental and social impact easier and generate reports meeting CSRD requirements. Look for tools like Watershed or Greenly or work with consulting firms such as KPMG and PWC that can integrate with your existing systems and scale as your company grows.
The Importance of Getting CSRD Right
CSRD compliance is not just about avoiding fines or penalties—it’s about showing that your company takes sustainability seriously. This can improve your reputation with customers, investors, and partners. Many people today prefer to do business with companies that care about the environment and society.
Moreover, reporting your ESG data can help you identify areas where your company can save money by reducing waste, energy use, or inefficiencies.
At Dyme Travel, we know that sustainability is not just a goal but a journey. That’s why we help businesses of all sizes reduce their carbon footprint while traveling. Learn more about how we can help you make a positive impact through sustainable travel solutions and emissions compensation.
How Travel Fits into CSRD
Corporate Sustainability Reporting Directive (CSRD) does require disclosures related to travel emissions. Under the CSRD, companies are expected to provide detailed information about their environmental impact, and this includes greenhouse gas (GHG) emissions. Travel-related emissions typically fall under Scope 3 emissions, which include indirect emissions resulting from a company’s operations, such as business travel, employee commuting, and supply chain activities.
Here’s how travel emissions factor into CSRD reporting:
1. Scope 3 Emissions
CSRD requires large companies to disclose their Scope 1, 2, and 3 emissions. Scope 1 covers direct emissions from company-owned resources, Scope 2 includes indirect emissions from energy use, and Scope 3 accounts for all other indirect emissions, including business travel. Companies will need to report the emissions generated from business flights, hotel stays, and other travel-related activities.
2. Climate Risk and Targets
As part of the CSRD, companies must disclose their climate-related risks and strategies for reducing their carbon footprint. Travel emissions can play a significant role here, and companies may need to show how they are working to reduce these emissions, such as opting for more sustainable travel options or reducing non-essential travel.
3. Double Materiality Concept
The CSRD uses the double materiality principle, meaning companies must report how sustainability impacts their business and operations impact the environment and society. If business travel contributes significantly to a company’s carbon footprint, it would likely be considered a material topic under the double materiality concept, necessitating clear disclosures on travel emissions.
Dyme and CSRD
At Dyme Travel, we are dedicated to supporting companies on their sustainability journey. We understand that CSRD reporting can be complex, and while we don’t provide carbon offsets, our platform can still play a valuable role in shaping your sustainability narrative. Here’s how we can help:
- Partnership Guidance
Though we don’t directly handle carbon offsetting, we can connect you with trusted partners specializing in ESG data collection and reporting. We work alongside your teams to find solutions for your company’s specific reporting needs. - Travel Solutions for Sustainable Companies
Dyme enables eco-friendly travel options, helping to reduce your company’s environmental impact. Using sustainable travel solutions demonstrates a commitment to the planet, which can be a crucial part of your CSRD narrative.
The CSRD will change the way companies report their sustainability practices, and it’s important for US companies to prepare now. With deadlines starting in 2024, getting started is of essence. By understanding the CSRD timeline, gathering data, and working with partners, your company can meet these new requirements and demonstrate your commitment to a more sustainable future. The CSRD timeline for US companies outlines important milestones for sustainability reporting. Understanding this timeline is essential for firms aiming to align with European Union regulations.
At Dyme Travel, we are here to help you on your journey to sustainability. Whether it’s tracking your travel emissions, compensating for your carbon footprint, or offering eco-friendly travel solutions, we’ve got you covered. Learn more about our services and how we can help you meet the CSRD standards.
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