The Corporate Sustainability Reporting Directive (CSRD)

What is CSRD?

The Corporate Sustainability Reporting Directive (CSRD) is European Union legislation that mandates large companies and listed entities to disclose their environmental, social, and governance (ESG) impacts annually. Effective from January 5, 2023, the CSRD aims to enhance transparency and provide stakeholders with consistent and comparable sustainability information.

The CSRD is a game-changer for adhesive tape businesses, directly affecting larger manufacturers while also exerting supply chain pressure on smaller suppliers. Businesses that integrate sustainability into their products, processes and reporting will gain a competitive edge, while those that ignore ESG compliance may face increasing regulatory and market risks. Early preparation (which takes 1-2 years) and transparency in sustainability data will be key to thriving under CSRD. The greatest challenge for tape companies will be data collection, especially for those located outside the E.U. Expert guidance is highly valued.

The CSRD impacts adhesive tape businesses primarily by increasing sustainability disclosure requirements, affecting supply chain transparency, ESG compliance, and competitive positioning:

Reporting obligations for larger adhesive tape companies

If an adhesive tape manufacturer or supplier meets the CSRD criteria (250+ employees, €40M+ turnover, or €20M+ in assets), it must publish detailed sustainability reports in line with the European Sustainability Reporting Standards (ESRS). These reports cover climate impact, resource use, supply chain risks and circular economy strategies, including data on the environmental footprint of adhesives, backings, and production processes. Companies listed on E.U. stock exchanges (even SMEs from 2026 onwards) will also be subject to CSRD reporting.

Supply chain pressure on SMEs

Even if an adhesive tape business is too small to be directly subject to CSRD, large customers (e.g. multinational packaging firms, logistics companies, or automotive manufacturers) will require sustainability data from suppliers to meet their own CSRD obligations. Tape suppliers may need to provide carbon footprint calculations, recyclability data, chemical composition transparency and ESG risk assessments to remain competitive in B2B sales.

Impact on product development and materials sourcing

Stricter ESG scrutiny may drive demand for sustainable alternatives, such as:

  • Solvent-free adhesives or bio-based alternatives
  • Recyclable or compostable tape backings (e.g. FSC-certified paper or biodegradable films)
  • Reduced-carbon manufacturing processes (e.g. shifting to renewable energy in production).

Businesses failing to align with circular economy principles (such as designing tapes for recyclability) may struggle in sustainability-focused markets.

Compliance costs and administrative burden

Companies affected by CSRD must invest in sustainability data collection, impact assessments and third-party verification. Even SMEs in the supply chain may need to track and disclose emissions, resource efficiency and waste management for major clients. Failure to comply could result in lost contracts, investor scepticism or reputational damage.

Competitive advantage for sustainable tape companies

Companies proactively adopting CSRD-aligned sustainability reporting will be more attractive to eco-conscious B2B clients seeking compliant suppliers, investors and financial institutions prioritising ESG-focused businesses, and regulators and government contracts, which increasingly favour sustainability leaders. Investing in ESG transparency, green product innovations and LCAs will enhance market positioning and reduce compliance risks.

Status of legislative process

Companies subject to the CSRD must report according to ESRS, developed by the European Financial Reporting Advisory Group (EFRAG). The first set of these standards was adopted on July 31, 2023, and published in the Official Journal on December 22, 2023. The CSRD is being implemented in phases, with the first companies required to apply the new rules for the 2024 financial year, reporting in 2025.

Timeline of measures and actions

  • 16 December 2022: Directive (E.U.) 2022/2464 was adopted.
  • 5 January 2023: The CSRD came into effect. Member States have a deadline of 18 months to transpose the directive into national law, i.e. by mid-2024​, but by this time, not even half have done so.
  • 13 November 2024: The Commission issued a notice on the interpretation of sustainability reporting requirements, including ESRS and other regulations and directives.
  • 2024 fiscal year: Large companies (>500 employees) already subjected to the Non-Fiscal Reporting Directive (NFRD) must comply.
  • July 2024: Afera surveyed 18 Members about CSRD, noting that 13 were preparing to comply for the fiscal years of 2024-2026.
  • 2025 fiscal year: Large companies (>250 employees / >€40M turnover / >€20M assets*) not currently subject to the NFRD must comply. *If an organisation fulfils at least two of these criteria (e.g. employees and turnover), it must comply with the directive.
  • 2026 fiscal year: Publicly listed SMEs, except for micro enterprises and some credit institutions and captive insurance enterprises, must comply.
  • 2028 fiscal year: Non-E.U. enterprises (>€150M turnover in E.U.) must comply.
  • Afera’s RA-WG CSRD taskforce continues to gather information and experiences from companies already implementing the directive and will prepare a guidance on the directive’s affect on Afera Members. The biggest hurdle is double materiality analysis.

References

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