Compliance with the Corporate Sustainability Reporting Directive (CSRD) involves organizations meeting the reporting requirements and deadlines outlined in the directive. Here are some key aspects of CSRD compliance:
Meeting Reporting Requirements: Organizations must adhere to the reporting requirements set out in the CSRD. This includes reporting a wide range of information related to environmental, social, and governance (ESG) issues and integrating this information into their annual reports.
External Assurance: Starting from the financial year 2024, organizations are required to obtain external (limited) assurance for their sustainability information from independent auditors. This means that external auditors must verify and validate the reported information.
EU Taxonomy: Organizations must comply with reporting requirements related to the EU Taxonomy, which involves indicating how their activities align with environmentally sustainable economic activities as defined in the EU Taxonomy.
Forward-Looking Information: Organizations must report forward-looking information, including key performance indicators (KPIs) and sustainability objectives, to provide stakeholders with insights into their long-term sustainability goals.
Double Materiality Assessment: Organizations must evaluate and report on both the financial and sustainability impacts of their activities. This includes assessing how sustainability issues affect financial performance and vice versa.
Timely Reporting: Organizations must ensure that they publish their sustainability information in a timely manner and in accordance with the required reporting deadlines.
Sector-Specific Standards: Depending on the sector in which an organization operates, there may be sector-specific standards or recommendations that need to be followed in addition to CSRD requirements.
Internal Procedures and Policies: Organizations should develop internal procedures and policies to ensure compliance with CSRD requirements, including the collection, verification, and reporting of sustainability information.
Compliance with CSRD is essential to promote transparency and accountability in sustainability reporting and to ensure that the reported information is reliable and credible to stakeholders and investors. Organizations should ensure they are well-prepared for CSRD compliance and have their sustainability reporting processes in order to meet the requirements.
