🌍✨ CSRD
CSRD - A - New -Dawn - for - Corporate - Sustainability - Reporting -
CSRD - A - New -Dawn - for - Corporate - Sustainability - Reporting -
🌍✨ CSRD: A new dawn for Corporate Sustainability Reporting ✨
Lionheart Snapshot Series
🌍We frequently get asked to explain the Corporate Sustainability Reporting Directive (CSRD) to Boards of Directors.🌟
The CSRD is a new EU law that will require large companies and listed SMEs to report on their sustainability performance.
It is the biggest change in sustainability reporting regulation in over a decade, and it will come into force on a phased basis from January 2024.
The CSRD introduces a number of new requirements, including:
Double materiality: Companies must report on both the impact of sustainability issues on their business (financial materiality) and their impact on people and the planet (impact materiality).
Assurance: Companies must have their sustainability reports assured by an independent auditor.
ESRS standards: Companies must report using the European Sustainability Reporting Standards (ESRS), which are a new set of sustainability reporting standards developed by the European Financial Reporting Advisory Group (EFRAG).
The CSRD is a significant change, but it is also an opportunity for companies to demonstrate their commitment to sustainability to their investors, customers, and other stakeholders.
Here are some things that we recommend that Boards of Directors, can do to prepare for the CSRD regulations:
Establish a sustainability strategy. The CSRD will require you to report on your sustainability strategy, so it is important to have one in place. Your strategy should be aligned with your overall business strategy and should set out your goals and targets for addressing sustainability issues.
Identify your sustainability risks and opportunities. The CSRD will require you to report on your sustainability risks and opportunities. This involves identifying the sustainability issues that could have a significant impact on your business, both positive and negative.
Implement sustainability management systems. The CSRD will require you to report on your sustainability management systems. This includes the policies, procedures, and processes that you have in place to manage sustainability risks and opportunities.
Start collecting data. The CSRD will require you to report on a wide range of sustainability metrics. It is important to start collecting this data now so that you are ready to report when the CSRD comes into force.
The CSRD is a new challenge, but it is also a great opportunity for companies to demonstrate their leadership on sustainability. By taking steps to prepare now, you can ensure that your company is well-positioned to meet the requirements of the CSRD and to reap the benefits of sustainable business practices.
If you have any questions about the CSRD, please do not hesitate to contact the team at Lionheart Corporate Governance.
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If you require any further information in regard to Corporate Governance please feel free to contact us at admin@lionheart.ie