The Corporate Sustainability Reporting Directive (CSRD) is a new EU law that became national law in November 2022, requiring companies to publish regular reports on their environmental and social impact activities. New legislation requires companies to report on the impact of sustainability issues such as climate change on their business and the direct impact of their operations on stakeholders and the environment.
The CSRD Act requires potential investors, consumers, policy makers, and other stakeholders to assess the environmental and social impacts of large companies before entering into any relationship or negotiation with the organization. is designed to help is considered an escalation of Environment, Society, Governance (ESG) reports have helped support the CSRD bill and its eventual adoption into national law.
Does the law apply to your organization?
About 50,000 companies are expected to be affected by the new CSRD mandate, a significant increase from the 11,700 companies covered by the CSRD. Non-Financial Reporting Directive (NFRD). Below is a list of the types or organizations that are required to comply with the CSRD Act before considering the potential impact.
Organizations affected by the CSRD include large companies (excluding micro-enterprises) listed on EU regulated markets, listed SMEs, net sales of €150m and having subsidiaries or brands in the EU. includes non-EU companies that Public interest organizations with more than 500 employees, such as banks and insurance companies, and large companies that meet two of the three criteria: more than 250 employees and/or a turnover of EUR 40 million, and/or Total assets of €20 million.
What is timescale?
As we publish this blog in January 2023, businesses that are mandated to stay in line with the new Corporate Sustainability Reporting Directive have time.
The first report following the CSRD requirements should be published in the first quarter of 2024, SMEs are expected to work in line with the CSRD by January 2026, and SMEs will have an additional two years. grace will be given. We’ve created the timeline below to give you the full story of the event and help you save important dates.
No worries: STAR Index is ready and ready to help!
With over 15 years of supply chain experience, STAR Index can provide a platform for managing a broader view of ESG issues. The latest challenge, of course, is that of the new Corporate Sustainability Reporting Directive.
We work with many partners, supporting clients on legal and sustainability issues. As a STAR Index partner, you and your clients can use our platform to navigate challenges such as CSRD and begin the journey of mapping ESG supply chain risks all in one place. .Learn the benefits of becoming a partner When Clients of the Day by clicking here.
