CSRD: More and more companies gain insight into their impact
What is CSRD?
The European Corporate Sustainability Reporting Directive (CSRD) obliges companies to report on their sustainability efforts. This is in response to the growing risks of climate change and human rights violations and the need for a more positive impact of companies is greater than ever. At the same time, stakeholders, such as customers, investors and suppliers may request this information more and more. The CSRD brings about many changes, but also many possibilities. It is a last push for companies to take action on sustainability.
What will change for companies?
What and how companies report, will change. Meaning that companies will have to report their sustainability efforts, on top of their financial results, every year.
To do this, companies must have insight in activities of the entire supply chain and formulate appropriate targets. In addition, more attention will be paid to assurance and monitoring.
Companies inspire and influence each other
It is expected that more companies will fall under the CSRD in the years to come. First, large companies listed on the stock exchange, then large companies and medium sized listed companies will follow. We also expect that small companies, which are not directly covered by the CSRD, will be asked to have insights into their sustainability efforts. For example, if you want to become supplier to a multinational in the EU or get a loan, you will have to share information about your sustainability efforts.
“All eyes are on the big companies: it's up to them to take the first step. We are curious who will follow into their footsteps, and we are happy to support companies getting started with this.”, Eleonora Roding, CSRD specialist at Schuttelaar & Partners.
Who, what, when?
Regardless of whether your company will fall directly under the CSRD, we advise companies to prepare for this European directive. The focus will be on the entire corporate world. Expect questions about your sustainability efforts.
Curious whether the CSRD will apply to your company and when? And what steps you should take? That will emerge in our next article in this CSRD-series. You can also contact our CSRD team, who will help you every step of the way towards reporting according to these EU standards.
This article was written by Bregtje Noordhoek & Eleonora Roding