If you’re unsure whether your company falls under CSRD in 2026, you’re not alone. This is one of the most common questions companies across Europe are asking right now.

The scope of CSRD is significantly broader than previous regulations, and many companies that never had to report before will now be required to.

In this guide, we’ll break it down in a simple and practical way so you can quickly understand where you stand.

CSRD applies in phases, but starting in 2026 (for the 2025 financial year), a large group of companies will enter the scope for the first time.

The key category here is “large companies” within the EU.

A company is generally considered large if it meets at least two of the following criteria:

  • 250 or more employees
  • More than €50 million in annual revenue
  • More than €25 million in total assets

If your company meets two of these three thresholds, you are very likely required to comply with CSRD.

This applies even if your company is privately owned. Being listed on the stock exchange is not required.

In addition to large companies, CSRD also applies to listed small and medium-sized enterprises (SMEs), although they have slightly more flexibility and can delay reporting for a limited time.

Another important group is non-EU companies that operate within the European Union.

If a non-EU company generates significant revenue inside the EU and has a subsidiary or branch in the region, it may also be required to report under CSRD.

This is particularly relevant for international companies with European customers or operations.

In practice, CSRD expands the scope from around 11,000 companies under the previous directive to over 50,000 companies.

That means many organizations are dealing with sustainability reporting requirements for the first time.

One common misconception is that only very large corporations are affected.

In reality, many mid-sized companies will now fall into scope based on the thresholds mentioned earlier.

Another source of confusion comes from recent discussions around regulatory simplification and possible changes to thresholds.

While there are ongoing conversations at the EU level, the current criteria remain based on the 250 employees, €50 million revenue, and €25 million assets thresholds.

It’s important to base your planning on what is officially in force today, not on potential future changes.

If you’re still unsure whether your company is in scope, a practical first step is to gather your latest financial and operational data and check it against the thresholds.

From there, you can start preparing early instead of rushing later when reporting becomes mandatory.

Preparing ahead of time gives you a major advantage, especially because CSRD is not just about submitting a report.

It requires structured data collection, emissions tracking, and alignment with ESRS standards.

Companies that start late often struggle with missing data, unclear processes, and tight deadlines.

A simple rule of thumb is this:

If your company is growing, operating in the EU, and has structured financial reporting already in place, there is a strong chance CSRD will apply to you either now or very soon.

Understanding your scope early is the first step toward compliance.

If you want to be sure where your company stands, the next step is to run a quick assessment and identify whether you meet the criteria and what data you are missing.

Start your CSRD readiness assessment with Emission Owl and see exactly where you stand today.