Entering into force on 1 January 2023, but being phased in over a number of years, the Corporate Sustainability Reporting Directive (CSRD) will eventually require an estimated 50,000 companies to disclose information on what they see as the risks and opportunities arising from social and environmental issues, and on the impact of their activities on people and the environment.
And its not just EU companies that are implicated, explains Jasper Crone, who is director of sustainability consultancy CEN-ESG. Around 10,000 international companies with turnover within the EU will be captured, irrespective of where their headquarters are.
For all companies, the CSRD will sharpen focus on factors beyond a company’s operations, for example how human rights are respected across the entire value chain. Here the CSRD will link with other Green Deal legislation, such as the Corporate Sustainability Due Diligence Directive (CSDDD) and the Green Claims Directive, both currently in trilogue negotiations. (Also see "‘Cowboy Companies’ To Be Named, Shamed And Fined Under EU Supply Chain Directive" - HBW Insight, 30 April, 2024.) (Also see "EU Firms To Pre-Approve Green Claims Or Face Minimum 4% Annual Turnover Fine" - HBW Insight, 15 March, 2024.)
For consumer health companies, specific risks will need to be managed and reported, Crone notes. Relevant areas include pollution – for example microplastics, pharmaceuticals in the environment; water use and separately, wastewater pollution; circular economy, which includes packaging waste and social impact, including product affordability, safety, quality. (Also see "Time Running Out To Comply With New EU Sustainability Legislation" - HBW Insight, 19 December, 2023.)
All in all, the CSRD is set to transform the way that all industries operates, Crone warns, and it’s time to get cracking if you haven’t already.
Timestamps
2:00 Jasper Crone/CEN-ESG introduction
3:30 Introduction to the CSRD
7:45 What companies are affected by the CSRD
15:00 Specific implications for consumer health companies
21:00 Getting materiality right
25:00 CSRD to do list
32:00 Who’s afraid of targets?
37:00 Who’s responsible for CSRD in companies?
39:00 CSRD and the EU Green Deal
45:00 How will CSRD shape the way companies operate?
Guest Bio
Jasper Crone is a Director at CEN-ESG, a corporate sustainability consultancy which helps businesses maximise their corporate sustainability potential, improving performance and ESG disclosure.
Crone leads on several client teams, covering the implementation of internal controls and sustainability data, setting sustainability and net zero targets and developing programmes for implementation and operationalisation of objectives.
He is experienced in sustainability reporting and the CEN-ESG assists clients with all aspects of sustainability reporting, whether regulatory, investor or customer driven. He brings a range of skills from 20 years of experience in the financial markets, in both the investment banking and investment management industries. He has a BSc in Biology from University of Bristol and is a CFA charterholder.
You can contact Jasper via email: jasper@cen-esg.com
