Corporate Sustainability Reporting (CSRD)
Enhancing Transparency and Accountability in EU Business Practices
The Corporate Sustainability Reporting Directive (CSRD) was officially enacted on 5th January 2023, representing a significant milestone in the European Union’s (EU) efforts to promote sustainable business practices. As one of the primary instruments facilitating the evaluation of sustainability performance by organizations, consumers, and other relevant stakeholders, the CSRD demonstrates the EU’s commitment to improving the quality, comparability, and transparency of sustainability reporting within its jurisdiction. The directive highlights the increasing prominence of Environmental, Social, and Governance (ESG) factors in business decision-making processes and emphasizes the necessity for enhanced accountability in corporate sustainability practices.
Scope and Objectives
Applicability and Criteria
The CSRD applies to large companies that meet at least two of the following three criteria for two consecutive years:
- The company employs on average more than 250 people.
- The company has a balance sheet total of more than EUR 20 million.
- Net turnover of more than EUR 40 million.
In addition to large companies, the CSRD applies to small and medium-sized companies whose securities are listed on a regulated market, for example, listed on a stock exchange.
By broadening the scope of reporting requirements, the CSRD ensures that a more comprehensive and representative selection of companies is held accountable for their sustainability performance, fostering an environment conducive to sustainable development and corporate responsibility.
The CSRD will be implemented in three distinct phases between 2024 and 2026, allowing for a gradual transition and adaptation to the new reporting requirements. This phased approach ensures that businesses have sufficient time to familiarize themselves with the directive’s stipulations and make the necessary adjustments to their reporting processes.
Assistance and Compliance Support
To successfully navigate the complexities of the CSRD, businesses benefit from professional guidance and support. Our goal is to bridge the gap between reporting and management practices and the practical application of the company’s sustainability goals. Leveraging our international network, we offer a range of services to help organizations comply with the directive’s requirements, optimize their sustainability reporting practices and lower their impact.
Our services include:
- Comprehensive assessments of current sustainability reporting practices to identify areas for improvement and alignment with the CSRD requirements.
- Assistance in the development and implementation of tailored sustainability reporting frameworks, ensuring compliance with the directive and enhancing overall sustainability performance.
- Training and capacity-building programs to equip employees with the necessary skills and knowledge to effectively manage sustainability reporting in accordance with the CSRD.
- Ongoing support and consultation to ensure continued compliance and adaptation to the dynamic and evolving regulatory environment.
- KPI development and analysis.
- Roadmaps and practical guidance to bridge the gap between reporting requirements and the practical ways of lowering the company’s environmental and social impact.
Moving Forward with the CSRD
The Corporate Sustainability Reporting Directive represents a vital step towards promoting greater transparency, accountability, and comparability in sustainability reporting practices within the EU. By mandating a broader range of companies to report on their sustainability performance, the directive aims to foster a more sustainable, responsible, and inclusive business landscape. As organizations adapt to the new reporting requirements, seeking professional assistance can facilitate a seamless transition and ensure continued compliance with the directive.
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