THE CORPORATE SUSTAINABILITY REPORTING DIRECTIVE (CSRD)
Verification, assurance and compliance services to support the transparency of your sustainability measures
The Corporate Sustainability Reporting Directive (CSRD) is the new EU legislation that requires all large companies operating in the EU to publish regular reports on their environmental and social impact activities. It helps investors, consumers, policymakers and other stakeholders evaluate non-financial performance whilst encouraging a more responsible approach to business.
Crucially, it ensures that sustainability reporting is front of mind for large and medium-sized companies. And for the first time, the CSRD defines a common reporting framework for non-financial data.
It applies to all companies meeting at least two of the following three criteria; €40m net revenue, €20m balance sheet and more than 250 employees. Most companies above this size based in the EU and EU subsidiaries of foreign companies will fall within the scope of the CSRD – approximately 50,000 companies in total.
MANDATORY ASSURANCE
It's important to note that CSRD requires mandatory third-party assurance of reporting, with limited assurance for the first three years and then 'reasonable' assurance after that point, which is more detailed.
Given the significance of the directive, and the time it will take to prepare for it - companies will want to start preparing for its implementation. This will require collaboration and learning as people understand the importance of reporting sustainability information will equal the reporting of financial information.
UNDERSTANDING THE CSRD
The CSRD reporting standards will help companies better measure and manage their exposure to Environmental, Social and Governance (ESG) related risks and become better corporate citizens by measuring, disclosing, and managing the sustainability impacts they create. It covers:
- Environmental – for example climate change, pollution, water and marine resources, biodiversity and ecosystems, and circular economy.
- Social – for example, diversity and inclusion, human rights, working conditions, health and safety, employee relations, pay gaps, related rights, workers in the value chain, affected communities, consumers and end-users.
- Governance - for example, policies, risk management and internal controls, ownership and structural transparency, independence and oversight, responsible business practices, ethics, anti-corruption and executive pay fairness.
HOW CAN BUREAU VERITAS SUPPORT?
With a specialist team of sustainability experts operating worldwide, we are well-placed to provide unique understanding and insights to clients in reviewing their full range of operational activities against the new sustainability reporting standards. Companies meeting the criteria must submit their CSRD-aligned report on 1 January 2024, detailing sustainability performance for the 2023 financial year. This will be a challenging process for reporting companies because data collection and auditing will require time, and collaboration across finance, operations, human resources and sustainability teams.
We are urging companies to act now. Our team works in partnership with companies, by assessing your current situation, and needs and supporting the most appropriate route to achieve compliance.
We provide independent third-party verification and assurance of non-financial information including selected ESG performance metrics and sustainability reports.
Bureau Veritas has a long track record of excellence in sustainability services and our impartiality ensures complete peace of mind.
BENEFITS
- Prepare for compliance with the new CSRD – gain trust and credibility
- Demonstrate sustainability performance to stakeholders
- Attract capital investment
- Gather data in a responsible and ethical way to inform strategies
- Manage risks and achieve a better sustainable performance long-term
- Identify issues or gaps to inform decision-making
- All with support from a specialist sustainability team – global leaders in QHSE and CSR
UNDERSTANDING YOUR SUSTAINABILITY REPORTING OBLIGATIONS
The Corporate Sustainability Reporting Directive (CSRD) represents a significant change for organisations that affect their day-to-day operations.
Achieving compliance will unlock benefits for all businesses but some organisations may still not be aware of the full implications of these changes. Bureau Veritas is here to support you. We will help you to understand the requirements and make positive changes towards compliance, with a program of activity in the coming months.
SUSTAINABILITY REPORTING SURVEY - 2022
This survey aims to provide a global snapshot of companies’ sustainability reporting maturity and to identify common issues. The survey is anonymous, and should take no more than 10 minutes to complete and, as with our previous surveys, the aggregated results will be shared to thank participants for their input.