ESG Sustainability Report

The CSRD reporting obligation applies from fiscal year 2025 to all large companies meeting at least two of three criteria: over 250 employees, over EUR 50 million in revenue, or over EUR 25 million in total assets. From 2026, listed SMEs are also covered. In Germany alone, the number of affected companies rises from approximately 500 to around 15,000. Following the Omnibus I simplification package, thresholds may shift to 1,000+ employees and EUR 450 million+ turnover for certain categories. ADVISORI reviews your company data to determine if and when you are subject to reporting and guides you through the entire sustainability reporting process.

Double materiality is the methodological cornerstone of CSRD reporting. It examines two perspectives: impact materiality, meaning how your company affects the environment and society, and financial materiality, meaning how sustainability risks influence your business performance. Only topics that are material from at least one perspective must be reported under ESRS. ADVISORI conducts systematic double materiality assessments, engages relevant stakeholders, and documents results in an audit-ready format.

The European Sustainability Reporting Standards comprise 12 standards. ESRS 1 and ESRS 2 are mandatory for all reporting companies and govern general principles and cross-cutting disclosures. The ten topical standards cover Environment (E1 through E5), Social (S1 through S4), and Governance (G1). You only need to report on topical standards that are material according to your double materiality assessment. ADVISORI helps you correctly map and implement the standards applicable to your company.

For first-time reporters, plan for 6 to 12 months of lead time. Duration depends on the maturity of your ESG data infrastructure, complexity of your value chain, and the number of material topics. The process breaks down into gap analysis (4 to 6 weeks), double materiality assessment (6 to 8 weeks), data collection and consolidation (8 to 12 weeks), report drafting (6 to 8 weeks), and external audit preparation (4 to 6 weeks). ADVISORI develops a realistic project plan with clear milestones tailored to your timeline.

Yes. The CSRD requires external assurance of the sustainability report, initially at a limited assurance level. A transition to reasonable assurance is planned for the medium term. The report becomes part of the management report and is subject to the same audit requirements as financial reporting. ADVISORI prepares your documentation, data sources, and internal controls so that the collaboration with your auditor runs smoothly.

Costs vary depending on company size, industry, and data availability. For mid-sized companies with 250 to 1,000 employees, the investment typically ranges from five to six figures. Key cost drivers include value chain complexity, the number of material ESRS topics, building ESG data infrastructure, and engaging external auditors. ADVISORI offers modular consulting packages, from a standalone materiality assessment to complete report preparation.

A professional sustainability report improves access to sustainable capital, strengthens positioning with ESG-focused investors, and reduces capital costs over time. It documents your responsibility across the supply chain for customers and business partners. Transparent sustainability communication strengthens your employer brand in the competition for talent. Additionally, systematic ESG data collection uncovers operational risks and efficiency opportunities. ADVISORI helps you use the report as a strategic communication tool.