Sustainability in Motion Podcast –Episode 10: The Corporate Sustainability Reporting Directive
Hosts:
Matt Orsagh, Chief Content Officer at ED4S
Nawar Alsaadi, Founder and CEO of Kanata Advisors and Chief Adviser to ED4S
Guest:
Erin Knowles, Manager at Position Green
Episode Overview:
In this episode, Matt and Nawar discuss the EU’s Corporate Sustainability Reporting Directive (CSRD) with Erin Nolles from Position Green, diving into what it means for companies inside and outside of the EU, and the preparation necessary for compliance. Erin provides insights on Position Green’s approach to helping companies align with these new, rigorous reporting standards, sharing Position Green’s own journey in navigating CSRD.
Key Takeaways:
What is CSRD?
The CSRD replaces the Non-Financial Reporting Directive (NFRD), with expanded requirements for sustainability reporting that must be integrated alongside financial disclosures. This regulation applies to EU-based companies and international companies with substantial EU business, marking a transformative shift to align sustainability reporting on par with financial reporting.
Double Materiality as a Core Principle:
A unique feature of CSRD is the double materiality assessment, which requires companies to evaluate both the financial impacts of sustainability issues and their environmental and social impacts. This ensures companies report on their outward sustainability impacts alongside financial risks they face due to sustainability factors.
Preparation and Timelines:
CSRD compliance will be phased in over several years, with some non-EU companies affected by 2028-2029. Erin stresses the importance of starting early to manage the extensive data collection and stakeholder engagement processes required. Position Green recommends companies perform a “foundational report” ahead of formal compliance deadlines to identify gaps and prepare for required external assurance.
Implications for Global Companies and Investors:
Companies outside the EU may still be affected if they are part of the value chain for EU-based companies. Additionally, investors benefit as CSRD aims to create more consistent, comparable sustainability data, reducing “greenwashing” and providing credible data for investment decisions.
Position Green’s Approach and Resources:
Position Green combines consulting and software to streamline CSRD compliance, providing tools to track and organize sustainability metrics effectively. The company has also published resources, guides, and webinars to assist companies in understanding and preparing for CSRD’s requirements.
Conclusion:
This episode underscores the need for companies to prioritize CSRD preparation, starting with a robust double materiality assessment and engagement across their organizations. By tackling this early, companies can ensure compliance and set themselves up for more sustainable and transparent operations that align with growing investor expectations.
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About ED4S: At ED4S, we specialize in sustainability-focused workforce training, combining technology and instructional design to deliver custom ESG training solutions tailored for corporations. Our goal is to empower organizations with the skills and knowledge needed to meet sustainability goals, adhere to ESG regulation, and succeed in a competitive business environment.
