New sustainability reporting rules. What do you need to know?
19/10/2023
Large companies must shift up a gear by the end of next year to comply with the European Sustainability Reporting Standards (CSRD). The European Commission therefore laid down an initial set of standards to which they must refer. Large companies will be first, followed by smaller organizations. We list what you need to know about this.
Why sustainability reporting (CSRD)?
Meeting Europe's green transition goals requires new, sustainable investments. Sustainability Reporting (CSRD) should encourage companies to engage in sustainable investments. The new regulations require them to accurately report on their sustainability efforts as well as their climate impact. Standards help. Conclusion: showing a green image to the outside world by voluntarily reporting on sustainability aspects? That is a thing of the past. Sustainability reporting (CSRD) will become an obligation. In the future, that will make it easier to compare companies and their efforts around sustainability.
For your organisation too?
The question is not so much 'for whom?' but rather, 'as of when?'. Listed companies and companies with more than 500 employees are the first to be subject to the new rules. As of January 2025, they must adapt to the new regulations and publish a sustainability report for the fiscal year 2024. The report must include information on their environmental impact, human resources issues, and social affairs, among other things. The European Commision also wants to know what proportion of sales and expenses are related to sustainability (e.g. circular economy, sustainable use of water, etc.).
One year later, starting in 2026, companies that meet at least two of the following three criteria will have to comply with the ESRS: a turnover of €40 million, €20 million on the balance sheet, or employing at least 250 people. By 2028, SMEs may also be subject to the ESRS.
Two important points to consider:
- Do you already want to issue a sustainability report in line with the new standards as of 2025? Then you need to start now. The 2025 sustainability report covers the year 2024. You therefore need to collect all relevant data as of 1 January 2024.
- Does your organisation not need to comply with the new sustainability reporting standards yet? Even if that's the case, you will have to comply with them eventually. Companies that are already concerned will have to request information from their suppliers. So they too will be making extra efforts to collect all the relevant data as early as 2024.
Standards help improve sustainability
There are various standards that can help your organisation improve sustainability. They provide comparable metrics and clear guidelines for integrating sustainability procedures into your company. Below are three standards that offer invaluable guidance:
-ISO 14090:2019: Climate change adaptation - Principles, requirements and guidelines
The ISO 14090:2019 standard helps you outline strategies and measures to better prepare for the impacts of climate change.
-ISO 14064-1:2019: Greenhouse gases - Part 1: Specification with organization-level guidance for quantifying and reporting greenhouse gas emissions and removals
The ISO 14064-1:2019 standard supports you in establishing a standardised reporting system for greenhouse gas emissions and removals. Want to improve transparency about the climate impact of your organisation? This standard helps you do just that.
-ISO 26000:2020: Guidelines for social responsibility
The ISO 26000:2020 standard explains the 'how' and 'what' of corporate social responsibility (CSR). Wondering how to integrate CSR into your organisation's daily operations? That's where this standard helps you.
Getting started
Is your organisation taking a step forward towards a sustainable European economy? Purchase these standards in our webshop.
