The obligation for sustainability reporting (ESG reporting obligation) in Germany: What you need to know now

The Corporate Sustainability Reporting Directive (CSRD) requires companies to comprehensively document their sustainability activities. From 2024, companies with a balance sheet total of more than 20 million euros or a turnover of more than 40 million euros will have to present their ESG performance transparently. This regulation applies not only to large companies, but also to many small and medium-sized companies, which means that around 15,000 companies in Germany are now required to report.

The CSRD requires detailed reports that reflect social and environmental impacts and ensure compliance with European Sustainability Standards (ESRS). The obligation to report on sustainability not only promotes transparency, but also offers companies the opportunity to improve their ESG strategies and benefit from efficient sustainability measures in the long term. A Deloitte study shows that companies with transparent ESG reports are 10% more likely to secure investments, as investors increasingly value sustainability aspects.