Private equity companies and non-financial reporting

Your expert for questions

Klaus Bernhard
PE Assurance Leader at PwC Germany
Tel.: +49 711 25034-5240
E-Mail

Which companies are affected by CSRD reporting?

From the 2025 financial year, all large companies (defined as having at least two out of three: 250 or more employees, a balance sheet total of more than €20 million and a turnover of more than €40 million on two consecutive annual financial reports) are required to apply the CSRD reporting. Numerous portfolio companies will fall within the scope of this directive from that point on.

The CSRD requires large companies to publish reports on how their activities impact people and the environment and the ESG risks or opportunities they face under the framework of the twelve European Sustainability Reporting Standards (ESRS). Certain disclosures (e.g. ESRS E2: General Disclosures) are mandatory and must always be disclosed. Further obligations arise from the results of a materiality analysis according to the principle of double materiality (impact materiality and/or financial materiality). The additional disclosures for sustainability reporting can then be derived from the individual standards.

What does this mean in concrete terms for private equity investors and their portfolio companies?

The CSRD and the ESRS require holistic reporting on sustainability issues. In addition to the disclosure of numerous KPIs, this also includes information on strategy, opportunities and risks, corporate governance, and sustainability goals.

The additional information must be included in the management report and is subject to external assurance. In concrete terms, portfolio companies must therefore provide their relevant data in reliable and assurance-proof documentation. Processes for generation, retrieval, and aggregation together with a suitable control system must be established and integrated into existing financial statement preparation processes and schedules.