Corporate Sustainability Reporting Directive (CSRD)
Empowering Transparency and Accountability for a Sustainable Future
The Corporate Sustainability Reporting Directive (CSRD) is a key regulation set by the European Union to foster greater sustainability and transparency within corporate reporting. It aims to align businesses with the EU’s broader sustainability goals, creating a more inclusive and accountable economy for the future. The CSRD plays a critical role in supporting the EU’s Green Deal by holding companies accountable for their contribution to climate change, environmental degradation, and social responsibility.
What is the CSRD?
The CSRD is a framework designed to expand and enhance the non-financial reporting requirements for businesses across the EU. It builds on the Non-Financial Reporting Directive (NFRD) but significantly broadens the scope of companies required to report on their environmental, social, and governance (ESG) impacts.
Key Features of the CSRD:
Mandatory Reporting
Companies will be required to disclose detailed, standardized information on their sustainability practices, including climate-related risks, environmental impacts, diversity, human rights, and governance practices.
European Sustainability Reporting Standards (ESRS)
The directive introduces a comprehensive set of reporting standards to ensure consistency, comparability, and transparency across all companies in the EU, empowering stakeholders to make informed decisions.
Audit and Assurance
Sustainability reports will need to be independently verified, ensuring their credibility and reliability for investors, consumers, and other stakeholders.
Digital Reporting
All sustainability reports will be digitally accessible, with companies required to use a standardized, machine-readable format for ease of access and data analysis.
Video: What is CSRD?
This video explains the Corporate Sustainability Reporting Directive (CSRD) and the new requirements it introduces for businesses. We outline the steps companies need to take to comply, where ImpactBuying can provide support, and what these changes mean for (inter)national retailers and producers.
How Can Businesses Prepare?
ImpactBuying equips you with the powerful tools needed to assess and understand the impacts of your supply chain. Gain valuable insights, access critical data aligned with ESRS standards and be enabled to identify risks and opportunities. Take informed, strategic actions to enhance your sustainability efforts and excel in your CSRD reporting. To comply with the CSRD, businesses will need to:
Ensure Data Accuracy and Transparency
Implement robust systems to collect, manage, and disclose relevant sustainability data.
Adopt the New Reporting Standards
Align your disclosures with the European Sustainability Reporting Standards (ESRS).
Prepare for External Audit
Ensure reports are verified by an independent third party to meet assurance requirements. ImpactBuying is the first to meet the highest standard for collecting ESG supply chain data.
CSRD: A Path to a Sustainable Future
The CSRD is more than just a regulatory requirement; it is an opportunity for businesses to demonstrate their commitment to sustainability, build stronger relationships with stakeholders, and contribute to a more resilient, sustainable economy.