CSRD officially in force in Belgium: What does it mean for real estate companies?

The Corporate Sustainability Reporting Directive (CSRD) is officially in force in Belgium. This European directive takes an important step towards more transparency and detailed sustainability reporting for companies. Factor4 explains what this development means for your real estate organization.

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What is the CSRD?

The Corporate Sustainability Reporting Directive (CSRD) is a European directive requiring companies to report extensively on sustainability topics such as environment, social impact and governance (ESG). It replaces the former Non-Financial Reporting Directive (NFRD) and introduces stricter requirements for disclosure of sustainability information. The directive is set out in European Parliament and Council Directive (EU) 2022/2464. Belgium transposed this directive into national law on 28 November 2024, meaning that the CSRD is now in force in Belgium.

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Who is covered by the CSRD?

The CSRD applies to large companies that meet at least two of the following criteria:

•     More than 250 employees;

•     A turnover higher than €40 million;

•     A balance sheet total higher than €20 million.

In addition, listed small and medium-sized enterprises (SMEs) will also have to comply from 2026, albeit with modified requirements.

What does the reporting entail?

For property companies, the CSRD means that they have to report extensively on:

•     Environmental impact: Including CO2 emissions, energy consumption and water use.

•     Social aspects: Such as working conditions, diversity and human rights compliance.

•     Governance: Covering transparency in decision-making, ethics and anti-corruption policies.

Reporting must be done according to the European Sustainability Reporting Standards (ESRS) drawn up by the European Financial Reporting Advisory Group (EFRAG). More information can be found on the official website of the European Commission.

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Why is this important?

Implementing the CSRD encourages companies to make sustainability an integral part of their strategy and decision-making. This is crucial not only for a more sustainable future, but also for maintaining competitive advantage and access to finance. Investors and other stakeholders increasingly value transparent ESG reporting.

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How can Factor4 help you?

Factor4 offers comprehensive support to help real estate companies comply with the new guidelines. Our services include:

•     Materiality analyses: Identification of the most relevant ESG themes for your organization.

•     Taxonomy advice: Assistance in complying with the European Taxonomy for Sustainable Investments under Regulation (EU) 2020/852.

•     Sustainability reporting: Preparation of reports in accordance with the CSRD and ESRS.

•     Carbon footprinting: Determination of the carbon footprint of your organization and property portfolio (scope 1, 2 and 3) according to the GHG Protocol.

•     Science-based targets: Defining climate targets in line with the Science-Based Targets initiative (SBTi) and CRREM, and providing insight into long-term property risks.

•     Strategy setting: Advise on expected CAPEX and OPEX expenses of your property portfolio and identify future-proof properties.

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Ready for the next step?

Implementing the CSRD not only entails obligations, but also offers opportunities to firmly embed sustainability in your real estate organization. Contact Factor4 today and find out how we can guide you to full compliance and climate neutrality.