4 November 2022
On April 21, 2021, the European Commission published a proposed directive on sustainability reporting: the Corporate Sustainability Reporting Directictive (CSRD). According to this legislation, large European public-interest companies with more than 500 employees will have to prepare a sustainability report to disclose information regarding sustainability issues. It will replace Directive 2014/95/EU (Non-Financial Reporting Directive) with the aim of expanding the number of companies involved. It introduces common reporting standards and aligns them with EU regulations on sustainable finance. Let’s see what a sustainability report is and what kind of information it needs to contain.
A sustainability report (sustainability reporting or balance sheet) is a financial statement published annually by a company or organization. In the sustainability report, the company or organization communicates the economic, environmental, and social impacts generated by its daily activities.
According to CSRD, in the report, the company must provide information on sustainability-related issues. For instance:
The CSRD applies to all large companies and companies listed on regulated markets, with the exception of micro companies. It also applies to companies based outside the European Union with net sales of 150 million euros in the EU and that have at least one subsidiary or branch in the EU.
The European directive of April 21, 2021, calls for the adoption of European Sustainability Reporting Standards (ESRS).
The European Commission commissioned the European Financial Reporting Advisory Group (EFRAG), a private association funded by the EU, to develop the reporting standards.
EFRAG has published a draft set of the ESRS open for public consultation until August 8, 2022. It covers the full range of sustainability-related topics: environmental, social, governance and cross-cutting standards.
The deadline for delivery of the first set of draft ESRS to the European Commission is November 2022.
The directive will be implemented in three phases:
It allows them to attract new investment, open up to new markets, and improve their transparency not only to external stakeholders but also internally. MUV’s technology certifies the CO2 reduction corresponding to the use that is made of sustainable means of transportation. Data collected from institutions, agencies, and companies help to develop mobility plans based on the needs and habits of citizens and/or employees. Information from MUV’s mobility plan can be included in the sustainability report. In fact, the plan has an impact on both the company’s indirect emissions and the well-being and health of employees and the community, thus contributing to two ESGs (environment and society).
The Sustainability Reporting Directive (CSRD) was finally adopted by the European Parliament on 11 November 2022 and by the European Council on 28 November 2022 and published in the Official Journal of the European Union on 16 December 2022.
Employees of INAIL, LIST, ISPRA, Fondazione Unipolis, Fondazione CRT and many others have already turned colleagues into sustainable mobility athletes and actively contributed to reducing emissions.
Whether it is a sustainability project for employees or sponsorship for our champions, companies and organizations play as well the game of change.