Governance Briefing — April 30, 2025

Executive briefing: Financial years beginning January 1, 2024 trigger the first wave of Corporate Sustainability Reporting Directive (CSRD) statements, due with 2024 annual reports filed in 2025. In-scope EU public-interest entities with over 500 employees must disclose ESRS-aligned metrics, double-materiality assessments, transition plans, and supply-chain due diligence across climate, workforce, and governance themes.

Key governance signals

Mandatory ESRS coverage. Companies must apply the European Sustainability Reporting Standards (ESRS 1 and ESRS 2) plus topic-specific standards, documenting materiality determinations and data governance controls.
Assurance escalation. Limited assurance over sustainability statements applies from the first reporting cycle, with the European Commission empowered to move to reasonable assurance by 2028.
Value-chain transparency. CSRD requires reporting on Scope 3 emissions, workforce indicators, and supplier governance, expanding board oversight of third-party controls.

Operational priorities

Finalize double materiality. Complete stakeholder engagement, scenario analysis, and documentation that supports ESRS disclosure boundaries.
Integrate sustainability data. Harmonize ESG data platforms with financial consolidation systems to produce audit-ready statements.
Coordinate assurance. Align internal audit, external auditors, and sustainability teams on evidence expectations for limited assurance in 2025 filings.

Sources

Zeph Tech is guiding CSRD programs through ESRS data architecture, double-materiality workshops, and audit coordination for 2025 disclosures.