- Sustainability reporting (CSRD, ESRS) creates transparency on paper. Sustainability communication turns that data into stories that reach real stakeholders.
- Since March 2026, mandatory CSRD reporting applies only to companies with more than 1,000 employees and more than 450m euros in net turnover. Smaller companies are outside scope but still face stakeholder pressure.
- The EmpCo Directive is binding from September 2026. Vague claims like "climate neutral" or "sustainable" require solid evidence or they are prohibited.
- Effective communication formats range from website and social media to employee town halls and stakeholder dialogues.
- Companies that communicate sustainability honestly and precisely build credibility, strengthen employer branding, and differentiate themselves in the market.
In recent months, much in the world of sustainability has revolved around reporting: discussions about the CSRD, new EU Omnibus proposals, and initial practical implementations in companies. This means enormous additional effort and, in some cases, a completely new dimension of transparency for many businesses.
Sustainability is not limited to tables, key figures, and mandatory reports. Even if not all companies are directly affected by the reporting obligation, all face the same challenge: How do you showcase what you are already doing? How do you credibly communicate your efforts to customers, employees, investors, or the public?
This is where sustainability communication comes in. It is the "more" beyond mere reporting. An opportunity to tell stories, build trust, engage stakeholders, and make sustainability a tangible part of corporate identity.
This sustainability communication overview looks at the practical question: How can effective sustainability communication be achieved, and what needs to be considered?
Sustainability Reporting: The Mandatory Part
In recent months, the topics of CSRD and ESRS, the current EU Omnibus proposals, and discussions surrounding the VSME have dominated the headlines.
Since 18 March 2026, the mandatory CSRD reporting obligation applies only to companies with more than 1,000 employees and more than 450m euros in net turnover. Both criteria must be met. Smaller companies fall outside the mandatory scope, but face growing pressure from customers, business partners, and investors regardless.
The voluntary standard (VS, based on the VSME) is also being broadened beyond SMEs. It now covers all companies with fewer than 1,000 employees or under 450m euros in turnover that want to report voluntarily or are asked to by their supply chain partners.
What is special about sustainability reporting is its clear character: fact-based, structured, and strongly tied to regulatory requirements. It creates transparency on paper. Comparable and verifiable.
Numbers alone rarely create emotional connection or motivation. This creates a communication gap: The report is mandatory for some companies, but it does not answer the central question of how sustainability is lived in everyday life.
Sustainability communication turns data into stories, translates facts into messages, and opens dialogue with stakeholders.
Sustainability Communication: The Opportunity
While reporting primarily provides numbers and facts, sustainability communication opens up the space to bring these contents to life. It is aimed not at auditors or authorities, but at the people surrounding the company: customers, employees, investors, partners, and the public.
Sustainability communication tells stories, makes progress visible, highlights challenges, and invites dialogue. It creates closeness, trust, and identification. Things that a sober report alone cannot achieve.
Those who not only document sustainability but actively communicate it, transform obligation into distinction. This sustainability communication overview shows that it is a central building block for credibility and differentiation in the market.
Why Reporting Alone Is Not Enough
A sustainability report according to CSRD or VSME fulfills a clear function: it creates transparency and comparability. Stakeholders expect more today. They want to understand what stance a company takes, what values it represents, and what contribution it makes.
Limiting yourself to reporting alone wastes potential:
- Customers want to know how sustainability specifically improves their product.
- Employees seek orientation and meaning, not just key figures.
- Investors increasingly focus on the credibility of the strategy, not just the data.
- Society and media react to stories and clear positioning, not to tables.
Sustainability communication answers the "why" questions that a report cannot. It ensures that sustainability is perceived as part of the company's identity and future viability, not just as a regulatory necessity.
Legal Framework: What You Can and Cannot Say
Whoever communicates sustainability assumes responsibility, both towards stakeholders and in a legal sense. The line between authentic communication and potential greenwashing is narrow. The EU wants to ensure that consumers receive clear, verifiable statements, not empty promises.
With the EmpCo Directive and the originally planned Green Claims Directive, there are binding or planned frameworks that determine how sustainability may be presented in communication.
EmpCo Directive: Active Since 2024, Binding from September 2026
- In force since March 2024, transposition into national law by 2026, binding from September 2026.
- Goal: clear rules to protect against greenwashing and social washing.
- Imprecise terms such as "climate neutral," "sustainable," or "environmentally friendly" are prohibited unless supported by robust evidence.
- Statements such as "climate neutral by 2030" are only permissible with genuine interim targets and reduction plans.
- Violations risk significant fines and considerable reputational damage.
A Federal Government draft bill for national transposition is already available.
Status of the Green Claims Directive
The Green Claims Directive was planned as a supplement to EmpCo, with even stricter proof requirements. Trilogue negotiations were ongoing at the beginning of 2025, but the process has been halted since June 2025. A final implementation is currently uncertain. Companies should still monitor developments, as the discussion shapes the market and stricter standards remain possible in the long term.
Get a clear analysis of your sustainability communication and concrete recommendations for improvement. Compact workshop format.
Opportunities and Practical Approaches
Regulation sets clear guardrails. Within these limits, a wide range of possibilities opens up. Sustainability communication can become a real opportunity to build trust, differentiate your brand, and inspire employees.
Formats and Channels
- Website and social media: showcase current projects, progress, and daily insights.
- Employee communication: internal newsletters, workshops, or town halls to embed sustainability in the culture.
- Products and services: highlight sustainability aspects transparently on the product itself or in the sales process.
- Dialogue formats: stakeholder dialogues, panels, or customer feedback rounds create closeness and resonance.
Storytelling Instead of Columns of Numbers
Stakeholders want comprehensible stories, not mere blocks of facts. Successful sustainability communication means openly addressing challenges and learning processes. That appears more credible than polished messages.
Added Value for Your Company
- Employer branding: sustainability makes employers attractive to talent.
- Brand reputation: precise communication strengthens trust with customers and partners.
- Investor relations: shows future viability and reduces perceived risk.
- Customer loyalty: sustainability as a distinguishing feature in competitive markets.
From Obligation to Opportunity
Sustainability reports, whether mandatory according to CSRD and ESRS or voluntary, create transparency. They alone are not enough to truly reach stakeholders. This sustainability communication overview shows how sustainability can become tangible through communication: it translates facts into stories, creates dialogue, and strengthens trust.
The legal frameworks, such as the EmpCo Directive, set clear limits. Only precise, verifiable statements are allowed. This binding nature also offers an opportunity: those who carefully review and honestly design their communication gain credibility rather than losing it.
Communication is a strategic success factor. It helps make sustainability visible as part of corporate identity, and differentiates you in the market.
Frequently asked questions about sustainability communication
Who still has a mandatory reporting obligation after the 2026 Omnibus changes?
Since 18 March 2026, mandatory CSRD reporting applies to companies with more than 1,000 employees and more than 450m euros in net turnover. Both criteria must be met cumulatively. Smaller companies are outside mandatory scope but still face reporting pressure from customers and investors.
What is the difference between sustainability reporting and sustainability communication?
Sustainability reporting is fact-based, structured, and tied to regulatory requirements. It creates comparability and is aimed at auditors and authorities. Sustainability communication brings that content to life for real stakeholders: customers, employees, investors, and the public. It turns data into stories and invites dialogue.
What does the EmpCo Directive mean for our marketing materials?
From September 2026, vague claims like "climate neutral," "sustainable," or "eco-friendly" are only permitted if backed by robust evidence. Statements about future targets need genuine interim steps and reduction plans. Companies should audit their existing marketing language before the binding date to avoid fines and reputational damage.
Can smaller companies outside the CSRD scope still benefit from sustainability communication?
Yes. Stakeholder pressure exists regardless of mandatory scope. Customers, business partners, and investors increasingly align their expectations with sustainability performance. Voluntary reporting using the VS standard (based on the VSME) gives smaller companies a structured foundation for credible communication.
