EU's New CSRD, A Game Changer For Sustainability Reporting
The European Union has launched a new Corporate Sustainability Reporting Directive (CSRD) that is a game changer for sustainability reporting.
It sets new environmental, social and governance (#ESG) reporting standards and obligations for companies operating in Europe, using the same methodologies, units and digital database.
It focuses not only on the disclosure of performance, but future strategy and scenario modelling for effective ESG risk management.
For the first time it will effectively facilitate the disclosure of sustainability information that is consistent, comparable and reliable, embedding it into investor decision-making.
The EU’s new CSRD is currently under consultation until August 8, and implemented into national law by the end of the year.
Even though CSRD will not apply until 1st of January 2024, it will include ESG data for the 2023 calendar year, which means it is vital to act now in order to ensure compliance.
All large and medium companies with more than 250 employees and a net revenue of $48.51 million will be publicly accountable for their impact on people & environment.
ESG data quality, consistency and credibility will be improved allowing capital flow into sustainable projects.