CSRD as a strategic tool for family businesses

Sustainability reporting is taking on a new dimension with the arrival of the Corporate Sustainability Reporting Directive (CSRD). What began as voluntary social responsibility is now becoming a legal obligation for many companies, with consequences for how family businesses report internally, communicate externally, and are structured legally and fiscally.

Although the CSRD is primarily aimed at large (listed) companies, family businesses of a substantial size, with a European presence or chain responsibility will also be affected by this directive. In this case, it is better to be ahead of the game than to have to make adjustments later.

What does the CSRD mean for family businesses?

The CSRD has been in force since 2024 and is being introduced in stages. From 2025, the reporting obligation will apply to companies that meet at least two of the following three criteria:

• More than 250 employees
• More than €40 million in turnover
• More than €20 million in total assets

From 2026, the obligation will also apply to listed SMEs. Although smaller family businesses may formally fall outside these frameworks, in practice they are often indirectly affected, for example through chain obligations of larger partners or banks that request sustainability data as part of financing.

The CSRD requires companies to report in accordance with the European Sustainability Reporting Standards (ESRS). This involves not only CO₂ emissions or energy consumption, but also governance, diversity, working conditions, and social impact.

Legal and tax implications

The impact of CSRD is not only substantive, but also legal and fiscal. Consider:

• Governance: who is responsible for reporting and how is this legally guaranteed?
• Structure: are the right entities included in the scope and how is data collected per entity?
• Taxation: how do sustainability goals fit in with the tax strategy, for example in the case of investments or subsidies?

In many family businesses, this reporting process is intertwined with other internal responsibilities. HVK Stevens assists with legal structuring that embeds CSRD reporting, including a clear division of powers and responsibilities, so that reporting does not become a risk.

We also ensure that sustainability investments, transfer prices, and international structures are in line with what is reported publicly. After all, transparency starts with consistency and an approach that is consistent at every level.

CSRD compliance as an opportunity for positioning

The CSRD also offers opportunities for family businesses. Precisely because many family businesses have traditionally operated in a sustainable and long-term oriented manner, structured reporting enables them to better showcase their social value to employees, customers, financiers, and future generations.
Those who strategically organize the reporting process also reinforce the story of the family business: connected to the environment, focused on continuity, and prepared for a future in which social value becomes measurable and verifiable.

A solid foundation for sustainable accountability and strategic ownership

By working on CSRD compliance in a timely manner, you build more than just reporting responsibility: you build trust, internal cohesion, and external legitimacy. Want to know more about how CSRD affects and strengthens your family business? Our specialists help you embed CSRD, with an eye for the regulations and the dynamics within your organization.