The year 2025 marks a decisive turning point for European companies. With the gradual entry into force of the CSRD (Corporate Sustainability Reporting Directive), organizations must now report on their sustainability performance with unprecedented rigor and transparency.
But beyond a simple regulatory obligation, the CSRD (Consumer Responsibility and Sustainable Development) is a strategic opportunity : to rethink your business model, reduce your carbon footprint, and create sustainable value. And that's precisely where Powesco comes in.
What is the CSRD?
The CSRD (Corporate Sustainability Reporting Directive) is the new European directive (Directive (EU) 2022/2464) which requires companies to publish information on sustainability, i.e. on their environmental, social and governance (ESG) impacts.
It replaces the old NFRD (Non-Financial Reporting Directive).
Here is the difference between NFRD and CSRD:
| NFRD | CSRD | |
| Year | 2014 | 2024 |
| Companies involved | ≈ 11 000 | ≈ 50 000 |
| Standards | Not mandatory | ESRS required |
| Audit | No | Yes |
| Approach | Paper or digital format of your choice | Digital format |
| Objective | Voluntary transparency | Standardized, mandatory and verified reporting |
Objective :
- Improving the transparency and reliability of ESG and CSR (corporate social responsibility) data
- To enable investors, regulators and citizens to compare the sustainable performance of companies.
- Accelerate the ecological and social transition of the European economy.
Read also: How to define your company's carbon trajectory?
Key principles and requirements of the CSRD
- Dual materiality:
Companies must analyze:
- How sustainability issues impact their business.
- How their activity impacts the environment, society and human rights.
- European standards ESRS (European Sustainability Reporting Standards)
- 12 standards adopted by the European Commission (ESRS 1, ESRS 2, + E/S/G thematic standards).
- They cover, in particular: climate, pollution, water, biodiversity, workers, communities, governance, etc.
- Mandatory audit.
The information must be verified by an independent auditor (limited assurance level, then reasonable). - Digital format (XHTML / XBRL markup)
The data must be published in a single electronic format to facilitate reading and comparison.
Integrated reporting in management:
Non-financial sustainability reporting will be an integral part of the management report , and not a separate report.
Penalties for non-compliance with the CSRD
the CSRD is a European directive, each member state sets its own sanctions, but within a common regulatory framework defined by the EU. In France (and in most European countries), companies that fail to comply with their sustainability reporting obligations are subject to:
- Administrative fines : for failure to report, incomplete or misleading information.
- Criminal penalties are possible in cases of intentional false statements.
- A reputational and financial risk : loss of investor confidence, difficulties in accessing green financing, exclusion from public tenders.
- Enhanced controls by auditors and national authorities (such as the AMF in France).
Initial application schedule
| Exercise concerned | Publication of the CSRD report | Companies involved |
| 2024 | 2025 | Large companies already subject to the NFRD (approximately 12,000 in the EU) |
| 2025 | 2026 | Other large European companies meeting at least 2 of the following 3 criteria:
– > 250 employees – > €40 million in revenue – > €20 million total balance sheet |
| 2026 | 2027 | SMEs listed on regulated markets (excluding micro-enterprises) |
| 2028 | 2029 | European subsidiaries of non-EU groups with European turnover > €150 million |
CSRD: the new schedule after the 2025 postponement
In April 2025, the European Parliament approved a two-year postponement of the application of the CSRD for certain categories of companies.
The goal: to give companies more time to prepare and the European Commission more time to finalize the ESRS sector standards
Updated CSRD calendar (version 2025)
| Business category | Original date (before postponement) | New effective date | First publication expected |
| Wave 1 : Large companies already subject to the NFRD (more than 500 employees, listed companies, banks, insurance companies) | Fiscal year 2024 | ✅ No changes | Report published in 2025 |
| Wave 2 : Large companies not yet covered by the NFRD (meeting at least 2 of the 3 criteria: > 250 employees, > €40M turnover, > €20M balance sheet) | Fiscal year 2025 | ⏳ Postponed to the 2027 financial year | Report published in 2028 |
| Wave 3 : Listed SMEs (excluding micro-enterprises) | Exercise 2026 | ⏳ Postponed to the 2028 financial year | Report published in 2029 |
| Wave 4 –:European subsidiaries of non-EU groups (turnover > €150M in the EU) | Exercise 2028 | ⏳ Postponed to the 2030 fiscal year | Report published in 2031 |
What remains unchanged:
- The content of the CSRD remains the same: full reporting according to ESRS standards and a dual materiality.
- Large companies already subject to the NFRD must still publish their CSRD report from 2025 (on 2024 data).
Themandatory external audit and the digital format (XHTML/XBRL) remain required.
Powesco, your partner for measurable and profitable decarbonization
Companies in wave 2 now have two additional years to:
- To perform their dual materiality analysis,
- Structuring their data collection systems,
- Implement carbon and ESG tracking tools .
This is the ideal time to take action without the immediate pressure of regulation.
At Powesco, we believe that compliance with the CSRD should not be a burden, but a lever for sustainable performance.
Our solutions support companies at every stage of their climate approach:
1. Measure accurately
Thanks to our automated carbon footprint assessment tools , Powesco collects and analyzes your energy and logistics data to create a comprehensive map of your emissions (Scopes 1, 2, and 3) . The result: a clear and reliable view of your carbon footprint.
2. Reduce effectively
Our experts identify reduction opportunities and propose energy optimization scenarios tailored to your business:
- Energy efficiency and conservation : insulation, relamping, HVAC etc.
- Electrification of uses: sustainable mobility, charging stations etc.
- Renewable energies : photovoltaic panels, waste heat recovery, etc.
Each action is quantified, prioritized and integrated into a realistic and measurable decarbonization plan.
3. Manage and showcase your progress
Our platform allows you to track your carbon indicators in real time and automatically generate the data required for CSRD reporting. We also facilitate external audits by ensuring the traceability and ESRS compliance of your data.
Read also: all about the energy management system (EMS)
Why act as early as 2025?
Companies that begin measuring, reducing, and managing their emissions as early as 2025 will be:
- Ready before the regulatory constraint,
- Better positioned to access sustainable financing,
- Perceived as committed players by their clients and partners.
At Powesco, we already support dozens of companies in their transition to a more sustainable and resilient model. Our ambition: to make decarbonization a driver of innovation, performance and positive environmental impact.
FAQ 1: How does the CSRD change the framework for sustainability reporting in Europe?
The CSRD establishes a single European framework for publishing ESG information, replacing the fragmented approaches of the previous extra-financial reporting. Companies concerned must now follow the ESRS standards defined by EFRAG , ensuring data comparability between EU countries. This structural change makes sustainability reporting a strategic tool, on par with financial information.
FAQ 3: What is the effect of CSRD on companies' sustainable development strategy?
Beyond reporting, the CSR acts as a catalyst for transformation.
It compels organizations to integrate sustainability into the core of their business strategy, involving all stakeholders : employees, suppliers, investors, and customers.
This structural shift fosters measurable sustainable development, compliant with European standards and aligned with the ambitions of the Green Deal.
Sources:
https://entreprendre.service-public.gouv.fr/actualites/A18249
