What is the CSRD?
The aim is to end greenwashing, strengthen the EU’s social market economy, and set a precedent for global sustainability reporting standards.
How do I know if the CSRD applies to my business?
Is my company covered by the NFRD, the CSRD, or both?
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How will these changes affect my business?
- The scope of the CSRD is broader than that of the NFRD
- Information must be included as part of your company’s Management Report, and must be delivered in a different format
- Information will be included in a digital open access database for greater transparency
- You’ll need to provide information that’s qualitative and quantitative, forward-looking and retrospective, and based in the short, medium, and long-term
- Your reporting must go through a mandatory assurance audit from a third-party service provider to make sure the information is accurate and reliable
- There may be an initial increase in costs, although the legislation should lower costs over the medium to long-term, according to the European Commission
What information needs to be provided?
- Relevant sustainability matters that have impact materiality (a positive or negative impact on people and the planet over the short, medium, and long term), financial materiality (generate risks or opportunities that could affect your organization’s financial position), or double materiality (both)
- Your business model and strategy, and its relation to sustainability risks and opportunities
- Intellectual, human, social, and relationship capital
- Policies, processes, and incentive schemes
- Progress towards meeting targets
- Adverse impacts and actions taken to remedy them
- Risks and their management
- Roles of the management and supervisory bodies and stakeholders, and their relevant expertise
What are the benefits of collecting and reporting this information?
Timeline and next steps
**International Sustainability Standards Board (ISSB)You should now have a better idea of what the Corporate Sustainability Reporting Directive is and how it may affect your business. While this article can serve as an informal guide, it’s important to stay up to date on new regulations, so you can make sure you’re in compliance.Regardless of whether or not this legislation applies to you, making your company more sustainable is a smart business strategy. By investing in solutions which give you access to data on carbon emissions, you can create plans to lower these emissions over time. Ultimately, you can reduce your company’s environmental impact through measures such as carbon offsetting to reach climate neutrality.
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How TravelPerk can help you reduce carbon emissions from business travel
- Offset 100% of your business travel CO2 emissions at just 1% of the total travel cost
- Contribute to VERRA-certified projects that help conserve biodiversity and protect ecosystems
- Get complete transparency over your data and progress
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