CSRD-E

Don’t wait, start acting now

The EU’s Corporate Sustainability Reporting Directive (CSRD) is an unstoppable change that will have a lasting impact on the corporate landscape. This directive is ground-breaking because it calls on companies to take responsibility and firmly integrate sustainability into their business practices. Despite the concerns and the effort involved, it also opens immense opportunities for your company on the path to a more sustainable economy. It is time to prepare for these upcoming changes and take the first step. Because by making the necessary effort now to implement sustainable business practices, you lay the foundation for long-term success and the development of new market opportunities. The CSRD – a clear fact that challenges us, but also rewards us as we move together towards a responsible and sustainable future.

 

How exactly this far-reaching directive will work and what you need to be prepared for in your business is something you should start looking at now. Read that in more detail here:

 

The CSRD will soon require mid-sized unlisted companies to transparently communicate their sustainability practices to help create a more sustainable economy. This directive will significantly affect companies that meet two of the following three criteria – >250 employees / >40 million € annual turnover / >20 million € balance sheet total – and requires timely preparation for the upcoming changes. This applies especially to the so-called “large companies”.

 

For financial years beginning on or after 1 January 2025, “large companies” will also be obliged under the EU CSRD to prepare and publish a sustainability report. This report shall contain information on environmental, social and governance (ESG) aspects and provide stakeholders with a comprehensive insight into the company’s sustainability performance. To this end, comprehensive data on all aspects of the sustainability impact of business activities must be collected and electronically processed in the financial year to be reported. The sustainability report becomes part of the management report and must be prepared in accordance with a reporting standard, the European Sustainable Reporting Standard (ESRS). Analogous to financial reporting according to IFRS, the sustainability report must be submitted in a standardised electronic format and certified by an auditor. This creates a second pillar for the reporting obligations of large companies.

 

The implementation of the reporting obligations requires a great deal of effort on the part of the companies. They must establish internal processes to collect, monitor and analyse relevant data. In addition, appropriate metrics and measurement methods need to be developed to quantify sustainability performance. Large companies also need to analyse their supply chains to understand sustainability impacts and identify potential risks. This will also require documenting the means of influencing supply chain partners to enforce more sustainable business practices even with suppliers and customers that are not obliged on CSRD-reporting.

 

In addition, it may be necessary to increase internal resources or involve external expertise to effectively manage the reporting process. Implementing sustainable practices and meeting reporting requirements requires close cooperation between different departments and clear communication at all levels of the company.

 

Although the effort required to comply with the EU CSRD reporting requirements should not be underestimated, the directive also offers opportunities for your company. Transparent disclosure of sustainability data can increase stakeholder trust, improve the company’s brand and facilitate access to capital. It also allows you to further develop your sustainability strategy and realise the benefits of doing business sustainably in the long term.

 

It is advisable that you take action now to build the necessary internal structures, data and reporting processes. This will allow them to prepare in time for the implementation of the EU CSRD and ensure that they meet the reporting requirements on time. By addressing the reporting challenges now, you can position yourself as a pioneer. Let me accompany you on your way to more sustainable business:

– With my seminars, I sensitise your employees and prepare them for the changes.

– With my support, you will develop your sustainability strategy and determine your “double materiality“.

– I accompany you on your way to certification or to an independent rating of your sustainable management.

– With my advice, you will find your ideal service providers for data collection (e.g. your carbon footprint) or the corresponding IT solutions.

 

I am at your disposal for a non-binding consultation.