di Vishal Patel
In an effort to drive sustainability and combat climate change, the European Union has introduced the Corporate Sustainability Reporting Directive (CSRD). This new regulation builds upon its predecessor, the Non-Financial Reporting Directive (NFRD), and brings about significant changes that impact organizations, procurement groups, and finance leaders. Below, we explore the key aspects of the CSRD, its implications, and outline specific timelines for organizations.
The CSRD aims to enhance sustainability reporting and disclosure requirements for organizations operating within the European Union. It introduces several amendments to the NFRD and expands the scope of reporting obligations to foster greater transparency and comparability.
From 2024 onwards, 50,000+ companies in the EU have to comply with the CSRD reporting requirements. Subject to certain exemptions, CSRD will apply to entities that fulfill two of the three requirements below:
Even though the UK is not part of the EU, CSRD will impact some UK-incorporated companies.
The CSRD is expected to be implemented in stages, with a phased approach based on company size and type. While specific timelines may vary, organizations should start preparing for compliance as early as possible. Non-compliance with the CSRD can result in financial penalties, reputational damage, and potential legal repercussions.
The CSRD represents a significant step towards fostering sustainable practices and increasing transparency within organizations. As the regulation comes into effect, organizations, procurement groups, and finance leaders must understand their roles and responsibilities to ensure compliance. By embracing the CSRD’s requirements, organizations can not only meet regulatory obligations but also build trust, enhance stakeholder relationships, and contribute to a more sustainable future.
We know that the Corporate Sustainability Reporting Directive (CSRD) is a significant step towards driving sustainability and combating climate change in the European Union. The new regulations will require all large companies to report their sustainability performance, including carbon emissions and energy consumption, in a standardized format. Companies will need to start preparing for the changes immediately to ensure they can meet the reporting requirements by the deadlines.
With Ivalua’s Environmental Impact Center (EIC), organizations can build meaningful and transparent emission reduction initiatives. By utilizing reliable data to generate emission baselines and collaborating with suppliers, the EIC is committed to creating a sustainable supply chain. This allows Procurement and Supply Chain departments an important opportunity to contribute to corporate sustainability goals.
Check out Ivalua’s Environmental Impact Center to learn more about how Ivalua can help you manage supply chain emissions and drive sustainability in your organization to meet regulatory compliance.
Vishal has spent the last 15 years in various roles within the Procurement and Supply Chain technology market. As an industry analyst, he researched and advised organizations in various industries on best and innovative practices, digitization and optimization. He brings a thorough understanding of market trends and digital technologies that can help enterprises be more effective with their Procurement and Supply Chain strategies. He works to ensure that organizations are empowered with technology platforms that enable flexibility, innovation, and agility.
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