Circularise’s Post

Mastering CSRD Compliance - Strategies for Effective Sustainability Reporting The Corporate Sustainability Reporting Directive (CSRD) is an EU directive that aims to improve the transparency and comparability of corporate sustainability data. It requires companies to prepare and disclose detailed reports on environmental, social and governance (ESG) issues, including Scope 3 emissions. Who will be affected by the CSRD and when? The CSRD significantly extends the scope of sustainability reporting to a wider range of companies. Any company that meets at least two of the following criteria 250+ employees, €40m+ turnover or €20m+ total assets, will be required to comply. From 2024, the CSRD will apply to companies already subject to the Non-Financial Reporting Directive (NFRD). By 2025, other large companies will be included and by 2026, listed small and medium-sized enterprises (SMEs) will also have to comply. Are you ready for reporting? Get your ducks in a row now! The two-hour webinar will cover the essentials of CSRD reporting, including the European Sustainability Reporting Standards (ESRS), which outline nearly 1,200 data points. Participants will learn how to integrate sustainability data into management reports and understand the need for external assurance on all disclosed information. The webinar will focus on double materiality, which requires companies to assess both their impact on the environment and the environment’s impact on them. It will also highlight the importance of working with stakeholders such as employees, shareholders, customers and local authorities. Participants will learn how improved sustainability reporting can enhance a company’s credibility, trust and value, while providing insights for optimising long-term performance. Join the seminar, 26 Sep 2024, 14:00 - 16:00, with my colleagues Lara Dammer and Matthias Stratmann at nova-Institut GmbH https://lnkd.in/gyVHGwq6

As environmental concerns continue to escalate, stakeholders—including investors, customers, and regulators—demand greater transparency and accountability from businesses regarding their environmental impact. This heightened scrutiny underscores the necessity for businesses to consolidate and enhance their sustainability reporting practices over time. This involves streamlining communication channels, ensuring consistency in data presentation, and actively seeking to improve the depth and quality of information provided. Effective sustainability reporting not only helps businesses track their environmental performance but also strengthens their reputation and competitive edge. By consistently improving reporting practices, companies can provide more accurate, comprehensive, and reliable data, which is crucial for building trust with stakeholders. Moreover, detailed sustainability reports can highlight areas of improvement, enabling businesses to implement more effective environmental strategies and achieve long-term sustainability goals. In addition, regulatory frameworks and standards for sustainability reporting are continuously evolving. Businesses that stay ahead by refining their reporting practices can better navigate these changes, avoid potential compliance issues, and leverage new opportunities for growth. Enhanced reporting practices also facilitate better decision-making, as they provide valuable insights into the sustainability impacts of business operations. This guide will equip you with the knowledge and 5 key strategies that businesses can adopt to enhance their sustainability reporting, ensuring they remain transparent, accountable, and ahead of the curve in their sustainability journey. https://lnkd.in/dztkF97j

Don't let anyone tell you sustainability reporting is simple and easy to do! There is no quick fix and all the tools in the world won't magically produce an accurate report for you. This statement may surprise you coming from a sustainability platform. We know sustainability reporting requires more than just spreadsheets; it demands comprehensive company-wide action for lasting success. While it can be complex, investing effort upfront to gain stakeholder buy-in and establish effective workflows it will streamline the process year on year (instead of getting harder). Together with our team of consultants and our data capturing platform we will help your organisation get ready for sustainability regulation by: - Reducing Effort and Time Required - Ensuring Comprehensive Compliance - Gaining clear, actionable steps to progress sustainability activities Read more here: https://lnkd.in/emKbCdMe #Sustainability #CorporateResponsibility #SustainabilityReporting Michael O'Shea Andy Barry John Ellis

🌍 What are the latest updates in Sustainability Reporting? 🌱 Yesterday, October 18th, the EU Parliament reaffirmed its commitment to the European Sustainability Reporting Standards (#ESRS). The decision means that mandatory #sustainability reporting will now be applicable to a substantial 50,000 companies starting from 2024. This move aligns with the broader initiative of the Corporate Sustainability Reporting Directive (#CSRD). 🌐 Global Impact: The news has been welcomed across the sustainable finance industry, with a nod to Europe's role in holding the fort for sustainable businesses amid international debates on corporate sustainability reporting. Standardised, transparent, and comparable data are expected to guide companies, inform investors, and empower consumers. Additionally, the ESRS isn't just an EU affair. From 2028 onwards, non-EU companies operating in Europe will also need to report their impacts using ESRS or equivalent standards. 🚀 Next Steps and Enhancements: Several steps are being taken to streamline and enhance the reporting process. A notable highlight is the proposal to reduce the reporting burden by postponing the adoption of sustainability reporting standards for certain sectors and third-country undertakings. This is aimed at allowing companies to focus on implementing the sector-agnostic standards. 🌱 Double Materiality: The ESRS isn't just about numbers; it includes the crucial concept of double materiality. Guidance on double materiality assessment and value chains is in the works, with EFRAG expecting to issue the final versions in Q1 2024. 👀 Looking Ahead: While the ESRS has faced some challenges and debates, it's a significant step towards corporate accountability. The standards cover not only metrics but also strategy, governance, and risk management—a comprehensive approach that goes beyond just data. 🗣️ Industry Voices: Eelco van der Enden, CEO of #GRI, hails the endorsement of ESRS as a game-changer for corporate accountability. The momentum behind impact reporting is set to increase, with ongoing engagement at national and international levels. 🔍 Focus on Interoperability: Global Reporting Initiative (GRI) is actively finalising interoperability tools, including a digital taxonomy and multi-tagging system, to simplify reporting processes. This will support companies in reporting according to both ESRS and GRI Standards within a single sustainability report. 👥 Looking Ahead: With ESRS and double materiality now on a confirmed trajectory, the journey towards sustainable and accountable business practices is well underway. As we approach 2024, companies are gearing up for a new era of reporting that goes beyond metrics to encompass strategy, governance, and risk management. Read more: https://shorturl.at/BRY01 #SustainabilityReporting #GlobalImpact #CorporateAccountability Paola De Bernardi Canio Forliano

Navigating the New Era of Sustainability Reporting (As a business) The landscape of corporate sustainability is set to undergo a significant transformation in 2024 and beyond. The introduction of the EU Corporate Sustainability Reporting Directive (CSRD), the release of the IFRS S1 and S2 standards by the International Sustainability Standards Board, and the approval of the Corporate Sustainability Due Diligence Directive (CSDDD) mark a pivotal shift in how companies will measure, manage, and report their value chain impacts. 🔍 The Challenge of Visibility and Data in Value Chains: For many businesses, especially those with complex supply chains upstream and diverse products and services downstream, the practical challenges of meeting these new requirements are substantial. The complexity of gaining visibility into and obtaining data on value chain activities cannot be understated. This is particularly true for entities operating in markets with less-advanced reporting standards or those that have not yet developed the capabilities or methods to assess and report on their full value chain exposure. 🌱 Before 3020Inc.'s Commitment to Sustainable Supply Chain Solutions: At Before 3020 Inc., we understand that the sustainability impacts of companies often extend beyond their direct operations, permeating upstream and downstream activities. That's why we are dedicated to providing solutions that not only enhance supply chain efficiency but also ensure compliance with the evolving landscape of sustainability reporting. 📈 Empowering Companies for Compliance and Beyond: With the CSRD and CSDDD also applying to non-European companies with significant activities in the EU, the imperative for comprehensive sustainability integration is more pronounced than ever. Before3020 Inc. is at the forefront of this transformation, offering expertise and innovative solutions to help your company navigate these changes seamlessly. Our approach ensures not just compliance but also a strategic advantage in the marketplace.

Regulatory compliance will advance sustainability actions faster than voluntary reporting ever could. Three quarters of companies preparing to report under the EU’s Corporate Sustainability Reporting Directive (CSRD) say that they are increasing the integration of sustainability into their decision-making processes, and many are also reporting a wide range of benefits, ranging to improved environmental performance to revenue growth, from sustainability reporting.

The Corporate Sustainability Reporting Directive (CSRD) has initiated a significant shift in sustainability reporting for companies both within and outside the EU. With the introduction of this directive, approximately 50,000 EU companies and over 10,000 non-EU companies will soon be required to provide a detailed account of their sustainability activities. Companies in the Asia-Pacific region with substantial operations in the EU will be directly impacted. This year, large non-EU entities listed on EU-regulated markets with certain criteria must start reporting under the CSRD, and by June 2026, this requirement extends to other large non-EU entities meeting specific operational and financial thresholds within the EU. CSRD also affects non-EU-based subsidiaries connected to EU-regulated markets through their parent companies. Companies within the scope of CSRD will be required to not only provide information on sustainability-related matters for their own operations but also for their material supply chain activities. Companies will be expected to engage with their value chains, including suppliers, regardless of where they are based. Asia-Pacific suppliers outside the scope of CSRD may face requests for data to help EU clients comply with their reporting obligations, specifically with reporting on scope 3 emissions and material impacts, risks, or opportunities. For Asia-Pacific companies, the CSRD represents both a challenge and an opportunity. Adapting to these regulations will require a robust assessment of current sustainability reporting practices and potentially significant enhancements to data collection and reporting processes. Companies will need to conduct thorough gap analyses and double materiality assessments to align with the CSRD's requirements. Early preparation will be key - the same advice for those preparing for the new climate-related disclosure requirements in Australia. If you need assistance navigating the complexities of sustainability reporting and ensuring compliance, please do not hesitate to get in contact.

🌍 ℂ𝕠𝕣𝕡𝕠𝕣𝕒𝕥𝕖 𝕤𝕦𝕤𝕥𝕒𝕚𝕟𝕒𝕓𝕚𝕝𝕚𝕥𝕪 𝕣𝕖𝕡𝕠𝕣𝕥𝕚𝕟𝕘 🌍 𝑬𝑼 𝒓𝒖𝒍𝒆𝒔 require large companies and listed companies to publish regular reports on the social and environmental risks they face, and on how their activities impact people and the environment. 🌍 What the 𝑬𝑼 is doing and why 𝑬𝑼 law requires all large companies and all listed companies (except listed micro-enterprises) to disclose information on what they see as the risks and opportunities arising from social and environmental issues, and on the impact of their activities on people and the environment. This helps investors, civil society organisations, consumers and other stakeholders to evaluate the sustainability performance of companies, as part of the European green deal. 🌍 New rules on corporate sustainability reporting: The Corporate Sustainability Reporting Directive On 5 January 2023, the Corporate Sustainability Reporting Directive (CSRD) entered into force. This new directive modernises and strengthens the rules concerning the social and environmental information that companies have to report. A broader set of large companies, as well as listed SMEs, will now be required to report on sustainability. 🌍 The new rules will ensure that investors and other stakeholders have access to the information they need to assess the impact of companies on people and the environment and for investors to assess financial risks and opportunities arising from climate change and other sustainability issues. Finally, reporting costs will be reduced for companies over the medium to long term by harmonising the information to be provided. The first companies will have to apply the new rules for the first time in the 2024 financial year, for reports published in 2025. Companies subject to the CSRD will have to report according to European Sustainability Reporting Standards (ESRS). The standards were developed by the EFRAG, previously known as the European Financial Reporting Advisory Group, an independent body bringing together various different stakeholders. https://lnkd.in/evp9cAVE

♻️ Drastic Changes in Corporate Sustainability Reporting! As of January 2023, the Corporate Sustainability Reporting Directive (CSRD) entered into force, bringing significant updates compared to the previous Non-Financial Reporting Directive (NFRD). Here's what's new: ✅ Expanded Scope: More companies are now required to report. ✅ External Review: Reporting is now subject to external audits. ✅ Standardized Reporting: The content and standards are set by the European Sustainability Reporting Standards (ESRS). 📚 Who Needs to Report and When? 📅  2024: Large companies already reporting under NFRD. Reports due in 2025. 📅  2025: All other large companies (including large non-listed ones). Criteria: ·      Staff headcount > 250 employees ·      Net turnover > €40 million or balance sheet total > €20 million       Reports due in 2026 📅  2026: Listed SMEs (excluding micro-enterprises, which constitute 93% of enterprises). Opt-out available until 2028. Reports due in 2027 📅  2028: Non-EU companies operating in the EU that meet criteria: ·      Net turnover > €150 million ·      Subsidiary in the EU meeting two out of three large company requirements       Reports due in 2029. 🍦 Will the ice cream shop in your neighborhood be reporting? Not directly. However, since the small shop collaborates with a bank, the bank will need this information to assess relevant risks and impacts within its value chain. For more details 👇🏼

https://lnkd.in/ejCQ93Ut The assessment, called Sustainability Reporting Quality (SRQ), generally relies on a content analysis and quantitative method. Researchers then established a set of measurement criteria and a scoring mechanism for each criterion based on the reporting principles of Global Reporting Initiative GRI), the most commonly used sustainability reporting framework.