CSRD: legal and tax preparation for sustainability reporting
The Corporate Sustainability Reporting Directive (CSRD) is changing sustainability reporting from voluntary reporting to a legal obligation. From 2025, large companies will be required to report on their ESG impact as an integral part of their management report, subject to assurance and with legal liability for the content. This requires a fundamental redesign of data flows, internal controls, and responsibilities within the organization.
Sustainability reporting in phases
The CSRD has been in force since 2024 and is being phased in gradually. From 2025, the obligation will apply to large companies that meet two of the following three criteria: more than 250 employees, net turnover of more than €40 million, and/or total assets of more than €20 million.
Listed SMEs will follow in 2026 (with an opt-out until 2028). Reporting will be in accordance with the European Sustainability Reporting Standards (ESRS), covering topics such as CO₂ emissions, employment conditions, chain responsibility, and governance structure. The data will be included in the management report and must meet double materiality requirements: insight into both the impact of the company on people and the environment, and vice versa.
Tax relevance of the CSRD
Although CSRD is a reporting guideline, the tax implications are clear. ESG information influences, among other things:
- Investment decisions relating to sustainability
- Tax transparency and reporting on place of establishment, profit allocation, and effective tax burden
Aligning ESG reporting with tax reporting is therefore crucial. Companies must anticipate questions from stakeholders and regulators about their tax position, not only in terms of figures, but also in terms of context and consistency. HVK Stevens helps you substantiate that tax transparency from a legal and tax perspective, in line with your broader ESG strategy.
Legal structuring and governance
The CSRD directly affects governance, who is responsible for data quality, reporting, and control? In many organizations, these responsibilities have not yet been formally assigned.
It is therefore essential to make legal agreements about the reporting structure, the safeguarding of data flows, and the control of completeness and reliability. Within group structures, this also requires coordination between entities in different jurisdictions.
A solid legal basis prevents uncertainty about liability and increases confidence in reporting, both internally and externally. Our multidisciplinary teams help you shape that basis, with clear agreements, cross-border structure, and an eye for what your organization needs.
CSRD: from guideline to workable practice
By aligning reporting, governance, and compliance, you create room for verifiable sustainability and credible accountability. Looking for a workable CSRD approach? Our professionals think along with you and act quickly, so that your organization can respond smoothly and compliantly to the new sustainability standards.
