The European Union’s CSR Directive (CSRD) introduces additional mandatory corporate reporting for ESG for the first time.
Qualifying organisations will need to submit their reports under the CSRD in addition to standard financial reporting requirements (P&L, balance sheet & notes to financial statements).
This new reporting standard was passed by the EU Council on 28th November 2022, and updates and replaces the Non-Financial Reporting Directive (NFRD), as well as expanding the reach beyond that of the NFRD. European countries are now passing their own local legislation to implement the standard.
What companies are impacted by the CSR Directive?
The CSR Directive impacts all large and listed EU companies meeting at least two out of the three criteria:
- More than 250 employees
- Turnover exceeding €50 million
- Balance sheet exceeding €25 million
Non-European companies will also be impacted if:
- Their net turnover generated in the EU exceeds €150 million, and;
- They have at least one branch or subsidiary in the EU
When will the first CSR Directive reports need to be submitted?
The first new CSR Directive reports will have to be submitted in 2025, based on 2024 financial year activities, which means businesses need to be preparing now.
2025
Listed EU businesses and companies already subject to the NFRD (> 500 employees)
2026
Large companies meeting at least two of these three criteria:
>250 employees
>€50 million revenue
>€25 million balance sheet
2027
EU listed small and medium-sized enterprises (SMEs) 50-250 employees
2028
Non-EU companies with:
>€150 million net turnover generated in the EU
At least one branch/subsidiary in the EU
How can companies prepare for the CSR Directive?
It’s essential that businesses start preparing now for the CSR Directive as this change in statutory reporting brings new requirements in terms of the data that must be reported. To ensure you can make a successful CSRD submission for your first deadline, you need to make sure you will be able to collate and report on all the information required by the standard. You may find that there are changes you need to make in your activities and/or in how you are recording the information at the moment. Therefore, the sooner you start assessing your current readiness, the better.
Intertek’s CSR Directive solutions provide a flexible offering, tailored to support your business’ requirements. However, we work with you, our objective is to help you ensure that your business is in the best position possible to comply with the new CSRD requirements.
How Intertek can help you prepare for the CSR Directive
Intertek’s sustainability expertise, combined with our in-depth understanding of our customers’ operations across a broad range of sectors, means we are best placed to help you prepare for this significant change.
Our experts can also train your teams to ensure everyone understands what’s required to prepare for your submission. This can be delivered to a range of different teams and functions across your organisation, and will be bespoke to best fit your requirements, taking into consideration your team’s current knowledge of the CSR Directive and understanding of its requirements, as well as your organisational readiness for the CSRD.
Intertek’s sustainability value chain solutions and our specialist tools, such as Inlight - the supply chain risk management platform, can also help you to meet your ESG goals and to address any areas of opportunity or improvement.
In some markets we will also be able to act as the auditor of your CSR Directive reports, offering you one single provider who can support you seamlessly from your early preparations through to audit of submission.
Intertek has partnered with ‘ESG Playbook’, a leading SaaS reporting solution provider, which brings into one tool all required data collection, aggregation, tracking and reporting for ESG.
Intertek has developed a 6 Steps Roadmap to help you identify quantitative and qualitative gaps within your organization’s activities as well as efficiency and effectiveness opportunities to comply with the EU’s CSR Directive.
Intertek’s experts help you navigate through the complexities of the double materiality assessment for sustainability reporting within your organization, including impacts, risks and opportunities (IROs) across environmental, social and governance matters.
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RESPONSIBLE BUSINESS INITIATIVE PROGRAMME
A partnership with Focusright and SUISSENÉGOCE
Intertek has partnered with Focusright and SUISSENÉGOCE to help member organisations comply with new human rights and environmental due diligence regulations.
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