A key pillar of the CSRD requires businesses to start reporting on their ESG activities, as well as the ESG emissions and practices of their supply chain. This new statement must be backed by data, audited and published as part of the company's Annual Report. Research shows a company's supply chain emissions are typically more than 10 times that of its operational emissions, so it is little wonder this has been made a requirement by CSRD legislation.
Below is a breakdown of what CSRD means for your business:
Who
Approx. 50,000 companies will be required to report on their ESG activities this year. This figure will increase significantly going forward, as the reporting criteria brings SMB's (not micro) into scope.
What
CSRD modernizes the rules concerning the environmental, social, and governance (ESG) information that companies must report, including their ESG activities and those of their supply chain.
When
The CSRD entered into force on January 5, 2024, and will bring more companies into scope each year going forward. It is currently being adopted into Irish law.
Why
To create a standardised framework of ESG reporting by companies, backed by structured data on the risks and impacts of their ESG activities. CSRD will help stakeholders to evaluate a company's sustainability performance.
How
Companies to disclose information on their impacts and risks related to ESG key topics, according to ESRS, 12 mandatory standards, which specify the information disclosure duties regarding material impacts, risks and opportunities related to sustainability matters.
Now is the time to start investigating how your business can become greener: not just to stay ahead, but to remain compliant.
