Insight

The CSRD provides guidelines on how to report, but what happens after? How can you use the collected data to set a strategy? How can you set ambitious goals? One framework that can help is to define Science Based Targets (SBTs). This blog explores the critical role of SBTs and their integration with the CSRD, highlighting the benefits they offer in driving corporate responsibility and ensuring a sustainable future.

The Corporate Sustainability Reporting Directive (CSRD) is impacting companies in a significant way. As reporting organizations are working to assess the impact of the Directive, we receive an increased number of questions on where to start the journey to become CSRD-compliant. CSRD requires large companies and certain public-interest entities to disclose information on their ESG impacts in their annual reports. 

The Corporate Sustainability Reporting Directive (CSRD), is a widely known buzzword and new EU law that requires large companies and certain public-interest entities to disclose information on their ESG impacts in their annual financial reports. This new and demanding regulation drives companies in their sustainability reporting journey. A well-known starting point for (sustainability) reporting is the materiality assessment. The CSRD introduces a new dimension to this assessment: double materiality.

Over the last few weeks, it’s been hard to miss the buzz around the anticipated acceptance of the Corporate Sustainability Reporting Directive (CSRD). On November 10th, the European Parliament has approved the proposed directive (with 85% of the Parliament in favor!), which will become effective as of for the first group of corporations in the beginning of next year at the latest. With the acceptance of the Directive, the sustainability reporting standards have seen updates as well.

The Directive on Corporate Sustainability Due Diligence, also known as CSDD, is part of the ‘Fit for 55’-package and the European Green Deal. The CSDD has a very close link with the CSRD. According to the CSRD, a company must establish processes to properly collect information for reporting purposes. This obligation is closely related to the due diligence obligation established under the CSDD directive to identify negative impacts. Furthermore, companies falling within the scope of both directives must report (CSRD) on their due diligence obligations (CSDD). The proposed directive will result in more complete and effective reporting by companies under the CSRD directive.

Three regulations have been introduced: the EU Taxonomy, the Corporate Sustainability Reporting Directive (CSRD) and the Sustainable Finance Disclosure Regulation (SFDR). The first two are applicable to all large companies, while the SFDR is purely for the financial market. This blog will delve into what the SFDR is, what it means for the financial market and why it is important.

The CSRD, a topic many organizations will be facing soon. However, there is quite some misunderstanding, misinformation, and general unclarity about the upcoming CSRD regulation. What do you need to … read more