CSRD

Our services
Our insights

The Corporate Sustainability Reporting Directive (CSRD) is a regulatory framework introduced by the EU to enhance and standardize how companies report on sustainability. Building on the Non-Financial Reporting Directive (NFRD), the CSRD significantly broadens the scope of mandatory reporting to include more companies and introduces detailed requirements aligned with the European Sustainability Reporting Standards (ESRS). This marks a new benchmark for transparency and accountability in ESG disclosures.

The CSRD is a crucial step in the EU's commitment to fostering a sustainable economy. By mandating detailed and comparable sustainability information, it provides investors, stakeholders, and the public with reliable insights into a company's impacts, risks, and opportunities related to environment, social, and governance.

With more businesses required to comply with CSRD and ESRS standards in the coming years, starting preparations now is essential. These changes demand significant adaptation, and we are already supporting major Danish companies in aligning their reporting with the new requirements.

As an international market leader in sustainability reporting, we have a strong ESG presence in Denmark. Our experts are ready to assist you in preparing a credible, consistent, and transparent sustainability report that meets the requirements of the CSRD.

The directive’s comprehensive requirements entail a significant and growing need to manage large and new datasets. This requires a solid methodological approach and the right technology. We can assist with identifying needs, mapping opportunities against existing system landscape, as well as recommending and implementing solutions, so you achieve the best possible overview.

Christian Møllegaard

Partner, Audit

KPMG in Denmark

mail
call

We can help you with

The double materiality assessment is the basis for reporting under ESRS and CSRD, but it is also valuable for companies not required to comply with the CSRD. When combined, the double materiality assessment provides an overview of where the company has the greatest impacts as well as financial risks and opportunities, how ESG factors affect the business, and how sustainability should be integrated into the strategy to ensure long-term success and resilience.

We guide your company through the double materiality assessment by mapping your context, including processes, value chain, and stakeholders, to provide a comprehensive understanding of your business landscape. Through interviews, workshops, data collection and analysis, we then identify ESG-related impacts, risks, and opportunities and score them in accordance with the methodology prescribed by the ESRS to assess their materiality for reporting purposes.

Learn more about double materiality assessment here

The EU Taxonomy is a classification system developed by the EU to define what constitutes sustainable economic activities. It serves as a cornerstone for the Corporate Sustainability Reporting Directive (CSRD), helping companies align their reporting with EU sustainability goals.

We assist in developing a comprehensive plan to prepare taxonomy reporting, train your organization on the new classification system, and prepare you to address investor questions. Additionally, we benchmark your performance against competitors and provide tailored support to asset managers in aligning investments with taxonomy criteria.

Learn more about the taxonomy here

A gap assessment bridges the divide between your current sustainability reporting landscape and the new statutory requirements under the EU Sustainability Reporting Standards (ESRS). It provides your business with a clear understanding of gaps in your reporting and identifies areas for improvement to ensure compliance with CSRD.

Our comprehensive approach supports your transition to the new directive by:

Understanding CSRD regulations: We help you navigate the new reporting requirements, identifying the aspects most relevant to your business.
Assessing current practices: By collecting and analyzing your existing sustainability reporting, we evaluate how well it aligns with CSRD standards and highlight any deficiencies.
Identifying gaps: We present a detailed and high-level overview of areas where your reporting falls short, prioritizing the most critical gaps that need to be addressed for compliance.

With the gap assessment, we ensure a smooth transition to CSRD-aligned reporting, providing clarity, structure, and actionable steps to meet evolving regulatory expectations.

Prioritizing and action planning: We collaborate with you to prioritize critical gaps and develop a tailored action plan to close them, enabling your organization to meet reporting obligations.
Implementation and continuous improvement: Beyond planning, we assist with implementing measures, evaluating their effectiveness, and creating processes for ongoing enhancement of your ESG reporting practices.

Successful CSRD implementation starts with aligning your ESG reporting with your broader business objectives and corporate strategy. We help companies ensure their reporting objectives support strategic goals and demands from business partners and stakeholders. Our approach includes defining clear policies, actions and targets that are tailored to industry benchmarks and expectations as well as to your own level of ambition, enabling you to effectively ensure full CSRD compliance in alignment with your strategic aspirations.

In February 2025, the European Commission published its Omnibus package, with the ambition to streamline key corporate sustainability regulations into a unified framework, to avoid complexity and administrative burden of companies.

As key highlights, the Commission proposes to reduce the CSRD scope to companies with over 1,000 employees, and either a turnover above EUR 50 million, or a balance sheet total above EUR 25 million. Smaller companies are encouraged to report voluntarily, using the voluntary reporting standard (VSME).

In April 2025, the “stop the clock” -proposal was approved officially. It aims to postpone CSRD reporting requirements for the companies that were initially due to report in 2026 and 2027 (Wave ll and Wave lll companies) by two years.

The Omnibus aims to bring further amendments as well, for instance to simplify the ESRS reporting standards, and narrow the EU Taxonomy reporting for the largest companies only. Further, the CSDDD timelines, penalties and civil liabilities are proposed to be amended.

KPMG follows these regulatory developments closely, to ensure timely and correct advice to our clients.

Voluntary Sustainability Reporting Standard for SMEs (VSME)

In December 2024, EFRAG published the VSME Standard to help smaller companies not affected by CSRD to meet the ESG data needs of their stakeholders such as banks, investors, and large companies in their client base. Compared to the ESRS standard, the VSME standard provides a significantly reduced reporting framework, a simplified format and clear guidance on how to interpret and source the required data. The aim is to help smaller companies report on sustainability-related information in a credible and comparable manner.

As part of the Omnibus proposal, the Commission proposes to adopt the voluntary standard as a delegated act.

Learn more about Omnibus here

Get in touch