CSRD: Who is affected by the new directive?
The CSRD (Corporate Sustainability Reporting Directive) redefines sustainability standards for companies in Europe. By strengthening transparency requirements, it encourages companies to integrate ESG (Environmental, Social, Governance) into their strategy. It applies not only to European companies, but also to all non-European companies operating within the EU. For finance professionals, CSR managers and executives, this directive means a review of reporting practices. Find out what CSRD changes, why it's essential and how to prepare effectively.
Qu’est-ce que la CSRD ?
The CSRD is a European directive on sustainability reporting, designed to improve companies' ESG transparency. It replaces the former NFRD (Non-Financial Reporting Directive) and imposes stricter transparency standards. The new directive extends the framework to include more companies, including listed SMEs and non-European companies with significant activities in the EU. For the latter two categories, respectively SMEs listed on the European market and other large non-European companies, the reference years are January 1, 2026 to 2028. The aim is clear: to ensure that companies report on their environmental and social impact in a transparent and consistent way. The CSRD concerns companies of all sizes (depending on specific criteria) and applies to different sectors to ensure standardized communication of sustainability performance.
CSRD criteria and requirements
The CSRD sets new requirements for corporate sustainability reporting. It is based on several key criteria.
Publication of ESG data
Companies are required to publish information on their environmental, social and governance impacts.
Dual materiality
Companies must assess the environmental and social risks to the company, and vice versa, the impact of the company on society.
Comparability and external verification
Reports must be structured to enable comparisons between companies, and be verified by third parties to ensure their accuracy.
These standards ensure that ESG communication meets the expectations of investors, customers and regulators.
Which companies must comply with the CSRD?
The CSRD applies mainly to large European companies, with a broader scope than the previous NFRD directive. Companies with more than 250 employees are concerned, as are those with sales in excess of 40 million euros, or total assets in excess of 20 million euros.
Listed companies, as well as certain non-European companies with significant operations in the European Union, must also comply with this directive. By including more companies, the CSRD aims to standardize ESG reporting practices across Europe and ensure transparency on environmental and social impacts.
Application dates for the CSRD
The directive will apply progressively between 2024 and 2028, depending on company size and status. Initially, large companies already subject to the NFRD will have to adapt to the CSRD requirements. The directive will then be extended to other large companies, followed by medium-sized listed companies.
What's the link between the CSRD and the datacenter?
Data centers consume a certain amount of energy and generate a carbon footprint, making them a key aspect of sustainability objectives.
To meet CSRD requirements, companies need to assess the energy efficiency and ecological impact of their data centers, whether in-house or outsourced. At UltraEdge, this often involves upgrading infrastructures, adopting renewable energies or maximizing cooling to reduce energy consumption.
By including these efforts in their reports, companies demonstrate their sustainability commitment. The CSRD therefore encourages more responsible management of data centers, contributing to a greener transformation of the digital industry.
Certified data centers to facilitate CSRD compliance
Some data centers have environmental standards and certifications that enable companies to meet CSRD requirements. For example, ISO 14001 certification for environmental management or ISO 50001 certification for energy efficiency prove that a datacenter complies with stringent sustainability standards.
These certifications help companies to ensure that their digital infrastructures are aligned with ESG objectives, by reducing their carbon impact and energy consumption. By choosing certified datacenters, companies can therefore easily integrate these sustainable practices into their CSRD compliance reports. At a time when transparency and corporate responsibility are increasingly top of mind, UltraEdge has taken steps to ensure full compliance with all CSRD standards. This enables them not only to meet legal requirements, but also to highlight their commitment to sustainability.