A Critical Look at New Legislation in 2024
From 2024 onward, listed European companies are obligated to report on their sustainability efforts. A crucial development, considering that many previous sustainability reports tended to lean towards an optimistic self-image. With the introduction of the Corporate Sustainability Reporting Directive (CSRD) and the proposed Corporate Sustainability Due Diligence Directive (CSDDD), companies are compelled to be accountable, risking legal consequences if they are not honest. However, at present, the rules are not clear enough about what companies should and should not disclose. This lack of clarity could lead to legal battles, causing companies to fear problems rather than striving for positive change.
ImpactBuying believes that combating greenwashing is of great importance. However, in our opinion, the proposed regulations might push companies into a defensive position. We emphasize the importance of encouraging companies to embrace positive changes instead of deterring them with unclear boundaries. It is crucial to promote an approach where companies are stimulated to proactively adopt sustainable practices. Without clear guidelines on their responsibility, companies might be inclined to withdraw rather than actively engage.
While transparent reporting is a means to encourage companies to act sustainably and justly, the government, in collaboration with companies, must establish clear boundaries and provide guidelines. Only then can reporting genuinely stimulate positive changes.
Let us collectively strive for a world where sustainability is not merely an obligation to report but an integral part of doing business.