PREPARATION IS KEY… AS THE NEW CSR DIRECTIVE GATHERS PACE, BUREAU VERITAS URGES BUSINESSES TO ACT NOW
With the EU’s new Corporate Sustainability Reporting Directive (CSRD) currently under consultation until 8th of August and implemented into national law by the end of the year, sustainability expert, Bureau Veritas is urging businesses to act now, to prepare, understand and comply with the ambitious new legislation.
The CSRD requires all large and medium-sized companies to annually publish information on how they manage and operate their environmental social, and governance (ESG) activities. With the directive, the Commission is giving sustainability reporting a similarly important status to financial reporting with it becoming an equally integral part of risk management and stakeholder engagement.
While the new reporting obligation will not apply until 01 January 2024, it will include ESG data for the 2023 calendar year, meaning the time to act is now to ensure compliance. Having large-scale implications for all companies with more than 250 employees, a net revenue of 40 million Euros or a 20 million balance sheet, it’s set to impact around 50,000 businesses across the EU.
Commenting on what the new CSRD means for businesses, Julie-Anna Smith, Sustainability Services Leader, South & West Europe, at Bureau Veritas, says: “The aim of the new CSR Directive is above all, transparency – to implement consistent, credible ESG reporting on sustainability risks and impacts that is relevant, reliable and comparable. The EU (along with many other countries including the UK) is aiming to become net zero by 2050 and has also agreed a 55% reduction on 1990 levels of greenhouse gases by 2030. If these targets are to be met, vast amount of capital needs to be directed toward more sustainable activities, which means investors need better information on which to base their investment decisions.
“In order to ensure compliance, businesses must begin the process now and gain a true understanding of the new reporting requirements. With a dedicated and specialist team of sustainability experts with the detailed understanding of the wide range of topics incorporated into the new requirements such as climate change, pollution, marine and water systems, biodiversity and nature and diversity and inclusion that operate across the globe, at Bureau Veritas we can provide a unique and unrivalled understanding and clarification for businesses needing to review their operational activities against the CSRD."
Sustainability Services Leader, South & West Europe
Companies meeting the criteria, must submit the CSRD ESG disclosures Q1, 2024, detailing sustainability performance for the 2023 financial year and future ESG strategies and goals. This will prove a challenging process for many as ESG data harmonisation required by the regulation will require collection and independent auditing will require time and collaboration across operations, human resources legal, finance and sustainability teams, meaning action must be taken now, as preparation and collaboration is key.
The knowledgeable team of sustainability experts at Bureau Veritas can support you understand your material risks, via tech enablement help to harmonise data capture, aggregation and monitoring systems which will be needed to accurately disclose ESG information.
Achieving compliance will unlock a plethora of benefits for all businesses, however many organisations remain unaware of the imminent changes. The sustainability team at Bureau Veritas is hosting a CSR Directive webinar on June 28th. This insightful session will simplify the obligations for businesses while providing clarity and support. Registration in advance is mandatory and can be done here for the morning session and here for the afternoon session.
Everyone who signs-up will automatically receive a Bureau Veritas guide to the CSRD, an informative journey covering planning, preparation and compliance ahead of the first reporting deadline. Bureau Veritas has a highly regarded track record of excellence in sustainability services and its impartiality ensures complete peace of mind.