Preparing for Corporate Sustainability Reporting Directive (CSRD) compliance can feel overwhelming, especially when navigating hundreds of data points and evolving regulatory expectations. CSRD is a major expansion of sustainability reporting requirements under the EU’s Non-Financial Reporting Directive (NFRD).
However, recent EU policy developments — including the Stop-the-Clock Directive and a provisional Omnibus simplification agreement approved by the European Parliament on December 16, 2025 — have narrowed scope and extended reporting timelines for many companies. Once final amendments are published (expected in early 2026), CSRD reporting will generally apply to organizations that meet revised thresholds, typically more than 1,000 employees and more than €450 million in net turnover within the EU.
Here’s a step-by-step guide to help you comply with CSRD reporting requirements and simplify your sustainability reporting journey.
Step 1: Understand what the CSRD requires
The first step to complying with the CSRD is understanding what it involves. The CSRD is an extension of the Non-Financial Reporting Directive (NFRD), and it significantly expands the scope of required ESG reporting.
CSRD significantly expands the depth and rigor of sustainability reporting, but its applicability has been refined through recent EU legislative action. Under the provisional Omnibus agreement approved in December 2025, CSRD will generally apply to companies that meet both of the following criteria once finalized:
• More than 1,000 employees, and
• More than €450 million in net turnover within the EU
Non-EU parent companies may also be in scope if they meet these thresholds through EU operations. This represents a substantial narrowing compared with earlier CSRD drafts, while maintaining the directive’s core objective of investor-grade, auditable sustainability disclosures.
To ensure compliance, you need to follow the European Sustainability Reporting Standards (ESRS), which provide specific metrics and guidelines across a wide range of topics. These include environmental factors like climate change and resource use, social aspects such as workforce and community impact, and governance standards related to business conduct.
Understanding the details of the CSRD is crucial as they form the foundation of your reporting process. If you're a U.S.-based company, it's important to also consider how CSRD applies to American businesses, as compliance can have different implications depending on your location.
Step 2: Perform a Double Materiality Assessment
Next, you must carry out a Double Materiality Assessment (DMA) to determine which sustainability topics are most relevant to your business and stakeholders. This assessment evaluates both the impact of your business on environmental and social factors and the impact of these factors on your financial performance.
The DMA is essential because it helps prioritize which data needs to be reported under the ESRS guidelines. You can’t report on everything, so focusing on material issues is a crucial step in staying compliant and providing meaningful insights.
Step 3: Establish a centralized data repository
One of the most critical aspects of CSRD compliance is data management. You'll need to collect, store, and organize a significant amount of both qualitative and quantitative data from a variety of internal and external sources.
Create an ESG data hub
Establish a centralized system for sustainability data to ensure that you can access the data you need, when you need it.
Pulsora’s dedicated sustainability data management platform creates a central repository for your ESG data in any format, from past reports to live data inputs. The platform is built to meet ESRS requirements, allowing for accurate data collection across various formats.
Set data validation rules
Set up rules for data validation to ensure that the information collected is accurate, relevant, and up-to-date.
Pulsora's sustainability management software automatically sets data validations and rules based on the ESRS metrics relevant to your business. This automation helps prevent errors and enhances the reliability of your reporting.
Step 4: Collect data
With your data repository established, you can begin collecting data for the ESRS metrics that apply to your business. Pulsora can simplify this by automating much of the data collection process.
Extract data from internal systems
Begin by gathering all existing sustainability data across your organization. Given the breadth of topics that you are required to report on, this data will likely be scattered across various departments and internal systems.
Pulsora allows you to integrate existing systems with the platform, automatically populating relevant ESRS metrics and reducing manual errors.
Collect data from your value chain
CSRD includes requirements to report on impacts across the value chain. However, recent legislative agreements emphasize a risk-based and proportional approach to value-chain data collection. Companies are expected to prioritize suppliers and partners most likely to drive material impacts, rather than collecting exhaustive data across all third parties.
Pulsora allows you to invite external partners to directly input their data into your system, ensuring you have the full spectrum of information needed for ESRS compliance.
By setting up integrations and automating data collection where possible, you minimize the risk of human error while speeding up the process.
Step 5: Ensure your data is auditable
CSRD requires third-party assurance of sustainability information, with an initial focus on limited assurance to verify the plausibility and consistency of reported data. While earlier policy discussions included a transition toward reasonable assurance, recent EU negotiations prioritize regulatory guidance and proportional application, without mandating a fixed progression timeline.
Pulsora’s automated audit trail tracks every data point, recording who made updates and when they were made. You can even grant auditors access to view these logs directly, allowing for smoother and quicker verification.
Step 6: Generate your CSRD report
The CSRD requires companies to create sustainability reports in XBRL, a machine-readable digital format designed to facilitate data accessibility and analysis. With Pulsora, this process is efficient and straightforward, allowing you to format your report in compliance with the ESRS XBRL Taxonomy in just a few clicks.
Step 7: Prepare for future CSRD changes
CSRD will continue to evolve through additional guidance and delegated acts. However, recent EU policy developments have adjusted both the timing and structure of future requirements, emphasizing simplification, proportionality, and flexibility while preserving alignment with the European Sustainability Reporting Standards (ESRS).
Pulsora’s dynamic platform ensures that your reporting evolves alongside the regulations. We are constantly updating the software to accommodate new requirements, helping you stay compliant as CSRD regulations change over time.
Get ready for the CSRD with Pulsora
Achieving CSRD compliance is no small task, but with the right tools and processes in place, it can be managed efficiently.
By using sustainability management software like Pulsora, you can create a streamlined workflow for collecting data, generating reports, and verifying your disclosures, ensuring you meet your obligations under the CSRD.
Start by understanding the requirements, setting up your data hub, and following through with materiality assessments and accurate reporting. With these steps in place, you’ll be well-prepared for the evolving world of sustainability reporting.
Contact Pulsora’s team to get expert support and tools on CSRD reporting. Schedule a call today to achieve CSRD readiness.
Editor’s note (Dec 2025): CSRD scope and timelines have been updated following the EU’s Stop-the-Clock Directive and a provisional Omnibus simplification agreement approved by the European Parliament on December 16, 2025. This article reflects the current regulatory direction as of publication.
