MIL-OSI Europe: Answer to a written question – Impact of the Corporate Sustainability Reporting Directive (CSRD) and the attendant administrative costs on Germany and the EU – E-002991/2024(ASW)

The first set of calculations made by the Commission on the costs of the Corporate Sustainability Reporting Directive (CSRD)[1] were explained under the impact assessment document accompanying the CSRD proposal[2].

In this document, the total incremental recurring costs of reporting against sustainability reporting standards in all 27 Member States were estimated at EUR 2.1 billion per year, plus additional recurrent costs for audit and assurance and the one-off implementation costs.

Subsequently, when adopting the European Sustainability Reporting Standards (ESRS) Delegated Act, the Commission estimated EUR 1.7 billion in annual recurring costs across the EU for reporting against ESRS[3]. This recurring costs estimate shows a reduction compared to the estimate in the 2021 CSRD impact assessment as a result of various simplifications made.

On 26 February the Commission adopted legislative proposals to modify the CSRD, as part of the ‘Omnibus’ initiative to reduce administrative burden on companies.

The Commission estimates that the proposed modifications would exempt about 80% of companies from reporting under the CSRD and lead to CSRD/ESRS reporting cost savings of EUR 1.2 billion per year, plus savings on the related audit and assurance costs.

Beyond this, companies would also benefit from being exempted from taxonomy reporting and future simplifications of the ESRS.

As set out in more detail in the assessment accompanying the omnibus proposal,[4] the combined cost savings resulting from the proposed changes to the CSRD scope (including the exemptions this would bring for Taxonomy reporting), plus the modifications of the future ESRS, have been estimated to amount to EUR 4.4 billion per year.

• [1] OJ L 322, 16.12.2022, p. 15-80.
• [2] Impact assessment, SWD/2021/150 final: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52021SC0150
  Summary of the impact assessment, SWD/2021/151 final: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52021SC0151
• [3] EUR-Lex — Ares(2023)4009405 — EN — EUR-Lex and https://www.ceps.eu/ceps-publications/cost-benefit-analysis-of-the-first-set-of-draft-european-sustainability-reporting-standards/
• [4] SWD(2025) 80 final.