Setting thresholds for the Corporate Sustainability Reporting Directive (CSRD) involves establishing criteria for determining whether your company’s sustainability performance meets or falls below defined levels. These thresholds help you identify areas where your company is excelling and areas that require improvement.

 Steps to Setting CSRD Thresholds:

  1. Identify relevant CSRD standards: Review the CSRD and its relevant standards to identify the specific topics or metrics that are most applicable to your company’s industry and operations.
  2. Establish benchmark data: Gather benchmark data from industry peers, regulatory bodies, or sustainability experts to understand the typical or expected ranges of performance for the selected CSRD metrics.
  3. Consider company-specific factors: Evaluate your company’s unique circumstances, such as its size, location, and risk profile, to determine appropriate thresholds that align with your company’s specific context and capabilities.
  4. Align thresholds with strategic goals: Connect the setting of thresholds to your company’s overall sustainability strategy and goals. Ensure that your thresholds are consistent with your ambitions and contribute to achieving your sustainability objectives.
  5. Set thresholds for different performance levels: Consider establishing multiple thresholds to differentiate between different levels of performance, such as ‘good,’ ‘amber,’ and ‘red.’ This will provide a more nuanced understanding of your company’s sustainability standing.
  6. Review and update thresholds regularly: Regularly review and update your CSRD thresholds as your company’s sustainability performance evolves, industry benchmarks change, and new regulatory requirements emerge.

 Considerations for Setting CSRD Thresholds:

  1. Data availability: Ensure that you have access to reliable and consistent data to assess your performance against your established thresholds.
  2. Stakeholder engagement: Involve relevant stakeholders, such as employees, investors, and communities, in the process of setting CSRD thresholds to incorporate their perspectives and concerns.
  3. Transparency and communication: Clearly communicate your CSRD thresholds and the rationale behind them to stakeholders to promote understanding and accountability.
  4. Balance between ambition and feasibility: Set thresholds that are ambitious yet achievable, considering your company’s current capabilities and resources.
  5. Continuous improvement: Use CSRD thresholds as a starting point for continuous improvement, striving to raise your performance levels over time.

By following these steps and considerations, you can establish effective CSRD thresholds that guide your company’s sustainability journey, track progress, and identify areas for enhancement. Remember that thresholds are not static; they should evolve as your company’s sustainability performance and the broader sustainability landscape change.


This user-frirendly guideline is co-created by ESG Forum’s members.