Let’s talk about the EU, ESG and your reporting
Even though your net-zero strategy has been created and is ready to be deployed, your job is far from over. You will now have to communicate in detail about your progress, because a proposed new EU directive aims to strengthen corporate sustainability reporting.
The proposed Corporate Sustainability Reporting Directive (CSRD), adopted in April 2021, should improve information on sustainability. At the same time, it could also help you to structure your action plan. Here’s what you need to know.
# The scope is broad – you will have to comply
The CSRD will apply to more than 50,000 companies, including SMEs. Its stringent requirements might become a model for best practices worldwide, similar to the EU’s General Data Protection Regulation.
# A high level of transparency is required – be prepared
The level of detail for sustainability reporting will match that of financial reporting – and the reports will be audited. You will have to detail your targets in five-year increments, presenting your transformation proposals, and disclose your progress. Now is the time to start thinking about data-collection processes.
# The EU is after results, not reporting for reporting’s sake
This is much more than a compliance exercise. It aims to implement a global strategy to create prosperity and sustainable value.
(PWC podcast, 4 november 2021).
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