Hey, if you've not heard about it the CSRD is the European Union's requirement to report on their Environment, Social and Governance (ESG) points in 2024-25.
Overall there is around 1100 data points your company should evaluate (through a Double Materially Assessment) to determine what is relevant to your business and how to report it.
If your business ins in the EU, and is:
Trading over 40 million Euro OR
Over 20 million Euro in asset on the balance sheet OR
Over 250 employees in size
Then the CSRD is something you'll need to undertake. Not doing so will leave your company at risk of national penalties which will be determined by each EU country.
Do I need to undertake CSRD if I'm an SMB/SMC?
Yes, it's coming down the line. Expect the EU to make announcements in Jun 2024 on the timeline.
Why should I care?
Businesses have an opportunity to significantly strengthen their leadership by becoming fully transparent with their approach, providing customers, clients and suppliers with an improved level of governance and information around a businesses operations and it's true impact on our planet and it's people. This will drive choice, competition and collaboration.
How do I prepare?
If you are not already then start budgeting for people and license investments in compliance, ESG and and CSRD. Form relationships with businesses that can help you. Identify the tools that can help you ( Check out Microsoft Sustainability Manager! it has a CSRD template).
Don't forget this is a great opportunity to look at how you improve your people and process approaches to ESG.
The European Financial Reporting Advisory Group recently published some guidance on enabling a consistent assessment approach for Double Materiality Assessments:
About the writer:
Gareth Jones is CEO and Founder of Lightrise Consulting (www.lightriseconsulting.com) a specialist Microsoft Partner providing business answers and solutions to improve ESG, and people processes and experiences.
Comments