CSRD implementation in Germany delayed: take a deep breath or seize the opportunity?
This article examines the current situation regarding the delay in CSRD implementation in Germany, the impact on companies and the planned simplification of EU reporting obligations. It also presents CURENTIS AG's recommendation for proactive preparation for the upcoming requirements.
The transposition of the Corporate Sustainability Reporting Directive (CSRD) into German law has been significantly delayed. Contrary to the original plan, the CSRD will not be applicable in Germany for the 2024 financial year. The reason for this is the political instability following the break-up of the governing coalition and the associated delays in the legislative process. The CSRD Implementation Act is not expected to be passed until quite late in 2025. This delay mainly affects large listed companies that would originally have been required to report from January 1, 2024. For companies that fall under the CSRD obligations from the 2025 financial year (with reporting in 2026), this delay is not expected to have any impact, as implementation into German law should have taken place by then.
At the same time, the European Commission has announced an initiative to simplify ESG reporting obligations. The aim is to consolidate the partly overlapping requirements of the CSRD, the Corporate Sustainability Due Diligence Directive (CSDDD) and the EU Taxonomy Regulation. Commission President Ursula von der Leyen is aiming to reduce reporting obligations by at least 25% for all companies and by 35% for SMEs.
Companies should use the time gained by the delay strategically and continue their preparations for the CSRD. Ideally, the year 2025 can serve as a test run. This provides an opportunity to optimize processes, close data gaps and refine sustainability reporting. Larger financial institutions in particular should note that they will probably still have to comply with a large proportion of the current requirements.
CURENTIS AG supports companies in preparing for the upcoming regulatory requirements and helps them to take full advantage of the opportunities offered by sustainable corporate management.
To the author:
Philipp Ehren has been a Senior Consultant at CURENTIS AG since 2021. He is our specialist for sustainable finance and has several years of experience in project work in risk management with a focus on IT applications. He is also a qualified project manager.
