Ready for the CSRD?

The Corporate Sustainability Reporting Directive (CSRD) is introducing some significant new reporting requirements for listed and large organisations. Smaller and medium-sized businesses outside its scope will not be immune from its impact, particularly if they are in the value chain of an in-scope company. Organisations of all shapes and sizes therefore need to take steps to prepare.

Purpose of the CSRD

The CSRD aims to ensure stakeholder access to reliable, comparable and transparent sustainability information from companies in scope. It introduces mandatory requirements to include, in the company's annual management report, detailed disclosures on the company’s impact and performance relating to a broad range of environmental, social and human rights and governance factors in accordance with a uniform set of reporting standards. An independent assurance requirement will also be introduced.

How does the CSRD affect your business?

Reporting obligations under the CSRD will apply to the following categories of companies:

However, companies outside the scope of the CSRD will not be immune from its impact, particularly if they are in the value chain of an in-scope company. The CSRD will no doubt also accelerate stakeholder demand for sustainability information on a wider basis and trigger an increase in voluntary reporting.

Preparing for sustainability reporting

Companies within the scope of the CSRD, or which may be interested in voluntary reporting, need to take action now to prepare for the CSRD’s extensive reporting requirements.

How can we help?

We are already working with many of our clients to assist them in developing a roadmap towards sustainability reporting. Get in touch to discuss how we can help your organisation in preparing for the CSRD. Our product offerings include:

• Training and Workshops

The ever-changing landscape, increasing regulation and intensifying stakeholder pressures relating to sustainability and ESG performance is overwhelming for many organisations. We provide straightforward and tailored training and workshops to boards of directors and executive teams who are keen to understand exactly how the CSRD will affect their organisations and to identify the practical steps they should take to prepare.

• Gap Analysis

A CSRD gap analysis is a valuable tool to assist an organisation in identifying its next steps in the CSRD process. We can take you through a step-by-step process, which will benchmark your organisation against the expansive CSRD reporting standards (the European Sustainability Reporting Standards) to support you in focusing your resources on complying with the prescriptive CSRD requirements.

• Governance

A well-defined governance structure dealing with issues including authority, accountability, reporting and oversight in relation to ESG issues is essential to ensuring effective preparation for the CSRD. The CSRD reporting standards also require organisations to make detailed disclosures regarding their sustainability-related governance structures. We have unrivalled expertise in developing and documenting formal governance frameworks, policies and models.

• Policies and Procedures

Many organisations will already have policies and procedures which deal with, or overlap with, sustainability topics included in the European Sustainability Reporting Standards (including, for example, relating to whistleblowing, anti-bribery and anti-corruption, the health and welfare of employees and diversity and inclusion). Now is a good time to review and update those policies and procedures from an ESG perspective and identify any gaps. We have legal experts across all environmental, social and human rights and governance fields ready to assist in that process.

For more information, please contact a member of our ESG group.