COMPLIANCE & REGULATORY
The Corporate Sustainability Reporting Directive requires large organizations with EU operations to produce sustainability statements aligned with European Sustainability Reporting Standards — covering material environmental, social, and governance topics across operations and value chains. CSRD is not an extension of existing voluntary sustainability reporting. It is a regulatory disclosure framework, subject to mandatory external assurance, and designed to produce data that investors, regulators, and supply chain partners can verify and compare.
For organizations in scope, the first and most consequential step is the double materiality assessment — identifying which sustainability topics are material from both a financial risk perspective and an impact perspective. Everything that follows is built on that foundation. Semtrio designs the full readiness journey: from materiality through to final ESRS-aligned disclosure, produced to a standard that holds up under scrutiny.
The EU's Omnibus I Directive (February 2026) confirmed the revised CSRD scope — large organizations with more than 1,000 employees and net turnover exceeding €450 million. Wave 1 companies are already reporting. Wave 2 and Wave 3 timelines have been delayed by two years. Organizations that meet the size thresholds — including EU subsidiaries of non-EU groups — should be preparing now regardless of wave assignment.
CSRD is the EU directive — the legal instrument that creates the obligation. ESRS are the 12 European Sustainability Reporting Standards that define what must be disclosed, how data is structured, and how materiality is determined across Environmental, Social, and Governance topics. CSRD sets the mandate; ESRS defines the implementation. Organizations that conflate the two often underestimate the technical depth that ESRS reporting requires.
CSRD requires organizations to conduct a double materiality assessment before determining what to disclose. Topics that are material from a financial risk perspective and topics that are material from an impact perspective must both be identified and prioritized. The outcome of the double materiality assessment defines the scope of the entire sustainability statement — making it the most strategically important step in the CSRD process.
The scale of ESRS reporting requirements — covering up to 12 topical standards across climate, pollution, water, biodiversity, resource use, workforce, value chain workers, communities, consumers, and business conduct — means that most organizations cannot meet CSRD from existing data sources. The data collection architecture, the stakeholder engagement process for double materiality, and the governance documentation required by ESRS 2 (General Disclosures) all need to be designed and built before the first sustainability statement is drafted.
Semtrio's CSRD advisory is structured around this reality. We begin with scoping and double materiality — establishing which topics are material and therefore which ESRS standards apply. We then design the data collection infrastructure and governance documentation. We draft the ESRS-aligned sustainability statement, cross-referencing with GHG accounting, GRI, and CDP disclosure to eliminate duplication. And we prepare the outputs for the limited assurance process that CSRD mandates.
For organizations with EU subsidiaries, complex group structures, or supply chains that extend the value chain obligations of CSRD — Semtrio designs the reporting architecture at the level of complexity the structure requires. One accountable partner across the full CSRD obligation.
OUR PROCESS
A complete CSRD readiness system — from scoping through to assured sustainability statement.
The double materiality assessment is not optional under CSRD — it defines the scope of everything that follows. For organizations that need the assessment as a standalone engagement before full CSRD readiness, Semtrio delivers it as a structured, stakeholder-informed process with a documented, audit-ready output.
Learn moreESRS E1 (Climate Change) requires disclosure of Scope 1, 2, and 3 GHG emissions — organizations without a verified, methodology-aligned GHG inventory cannot complete the climate standard. Semtrio designs GHG accounting to serve CSRD, CDP, and SBTi simultaneously from one data source.
Learn moreCSRD and the accompanying CSDDD extend disclosure and due diligence obligations into the value chain — organizations must assess and report on supply chain ESG risks beyond their own operations. Semtrio's supplier due diligence engagements produce the structured, audit-ready data ESRS value chain disclosures require.
Learn moreMany organizations subject to CSRD also produce GRI-aligned sustainability reports for stakeholder audiences. Semtrio designs CSRD and GRI disclosure to draw from the same data architecture — reducing duplication and improving consistency across both outputs.
Learn moreWe have completed the most rigorous third-party ESG assessment available — and we produce CSRD-aligned disclosure across every material topic ESRS covers.
CSRD advisory requires technical fluency across all 12 ESRS standards — environmental, social, and governance — combined with the process expertise to govern a disclosure that spans multiple functions, multiple data sources, and in many cases multiple entities. Most advisory engagements fail not in the drafting but in the data governance and double materiality process that precedes it. Semtrio is structured to manage both.
As a certified B Corporation with a score of 140.3 — placing us among the highest-performing B Corps globally — Semtrio has completed a comprehensive, independently verified assessment across every dimension that ESRS covers: governance, workers, community, environment, and customer-facing practices. We have produced the evidence, closed the gaps, and been assessed against a third-party standard more rigorous than most regulatory requirements. When we advise clients on ESRS documentation and evidence preparation, we do so from direct operational experience of the same process.
We work at the intersection of ESRS and IFRS S2 — the two disclosure frameworks that are increasingly converging in practice. For organizations managing both CSRD and IFRS S2 obligations, Semtrio designs a unified data architecture that serves both — one data collection process, two compliant outputs.
Assess your CSRD exposure with our teamIndependently assessed across governance, workers, community, environment, and customers — the same dimensions ESRS covers across E, S, and G
Operating at the convergence point of CSRD/ESRS and IFRS S2 — designing unified disclosure architectures for organizations managing both obligations
Double materiality through to ESRS-aligned sustainability statement — one accountable partner across the full readiness cycle
Whether you're scoping a single service engagement, evaluating end-to-end advisory across multiple clusters, or looking for one accountable partner across strategy and disclosure — start here.
Yaren Ünal
Senior Specialist,Client Solutions
Hamza Söylemez
Specialist,Client Solutions
Frequently asked questions about CSRD and ESRS
Whether you are scoping your CSRD obligations for the first time or preparing to accelerate toward your first ESRS-aligned sustainability statement — we will assess your position, confirm what applies, and take ownership of the delivery process.
