Keeping Up the CSRD Momentum: Why Low-Cost Reporting Solutions Matter

The Corporate Sustainability Reporting Directive (CSRD) is reshaping how companies disclose their environmental, social, and governance (ESG) performance. With its phased rollout starting in 2024 and extending through the next few years, the directive demands a new level of transparency and accountability across value chains.

But with budgets under pressure and many businesses still finding their footing, some organizations are considering slowing down their reporting efforts. That’s a risk they cannot afford.

The Latest on CSRD

The CSRD extends sustainability reporting obligations to nearly 50,000 companies across the EU, a sharp increase from the 11,000 covered under the previous Non-Financial Reporting Directive (NFRD). The reporting must align with the European Sustainability Reporting Standards (ESRS), covering double materiality—how sustainability issues affect the company, and how the company impacts society and the environment.

The implementation timeline means:

• 2025 reporting for FY 2024 – large listed companies already subject to NFRD.
• 2026 reporting for FY 2025 – other large companies meeting two of three criteria: €40m turnover, €20m assets, or 250+ employees.
• 2027 onwards – listed SMEs, with an option for phased reporting.

The clear message: reporting isn’t optional—it’s mandatory and coming fast.

Why Reporting Momentum Matters

• Even if companies face cost pressures, maintaining the reporting journey is crucial:
  - Regulatory deadlines are non-negotiable – delaying preparation now means scrambling later.
• - Investor and stakeholder pressure remains high – ESG disclosures are increasingly tied to access to finance and reputation.
• Data foundations take time – building reporting systems, gathering value chain data, and embedding ESG governance cannot be achieved overnight.

Pausing now creates higher risks of compliance gaps, reputational setbacks, and increased costs later.

Challenges Companies Face
It’s no secret that companies are struggling with:

• Limited budgets for new ESG initiatives.
• Shortage of skilled sustainability professionals.
• Complex requirements across value chains.

These challenges are real, but the answer is not to hit pause. Instead, businesses need smarter, leaner approaches.

A Low-Cost, Practical Way Forward

This is where agile solutions like Newtral can help. By focusing on core compliance requirements and leveraging lightweight, cost-effective tools, companies can:

• Build momentum without overspending.
• Focus on material issues most relevant to their sector and stakeholders.
• Create scalable reporting processes that can expand over time.

For SMEs especially, a “low-cost but steady” approach ensures they don’t get left behind in the sustainability transition.

Conclusion

The CSRD marks a turning point in corporate sustainability. Companies that stay the course—even with leaner, cost-conscious methods—will find themselves better prepared, more resilient, and more credible in the eyes of investors, regulators, and society.

Momentum matters. And sometimes, the smartest path forward is also the most practical one.