Due to the ESG reporting obligation, there is now no alternative for capital market-oriented companies in Germany to deal with reporting. The obligation will be extended to all large companies on January 1, 2025. The criteria for mandatory ESG reporting will then be a minimum of 250 employees, net sales of €40 million or more, and total assets of €20 million or more.
The obligation applies as soon as two of these three criteria are met. This particularly affects limited liability partnerships, insurance companies, and banks. As of January 2026, the criteria for companies with a capital market-oriented structure will be reduced to ten employees, sales revenue of 700,000 euros or more and total assets of 350,000 euros or more. However, medium-sized and small companies without a capital market orientation, as well as micro companies, will not have to comply with ESG reporting requirements for the time being.
Just a few steps to an ESG report
ESG reporting is associated with extensive challenges. Because the European Commission does not provide clear templates for sustainability reports, it is important to provide guidance on how to prepare them. The following steps in particular remain crucial: