For many people reporting standards are stuff of nightmares. Others think it is so boring that the thought of reading an article about it, would be enough to fall asleep. But this time it is different!
You have probably already heard about the EU’s Corporate Sustainability Reporting Directive (CSRD). In case you didn’t, here is some background information:
The EU's Corporate Sustainability Reporting Directive (CSRD) is a piece of EU legislation that aims to increase the transparency and accountability of companies and to encourage them to consider the social and environmental impacts of their operations. Under the CSRD, large public-interest entities (PIEs) are required to report on their sustainability performance, including their environmental, social, and governance (ESG) impacts.
As you can see, there are a few words in there that make this a lot more interesting than your average report. These words are “transparency”, “social and environmental impact”, ”sustainability” and “ESG”.
The CSRD is expected to have a significant impact on the progress towards a more sustainable future (and that is great news!). While the first reports using this standard will not be published until 2025, it is important for companies to start preparing for the implementation of the CSRD now to get everything in order.
So, why should companies start preparing right now?
Time to get up to speed: Reporting on sustainability performance and the impact of everyday business might be a new requirement for many companies. Companies will need to implement new policies, processes and incorporate sustainability into the core of their business. Understanding how this works and getting up to speed will take some time.
Opportunity to improve sustainability performance: The CSRD provides an opportunity for companies to review and improve their sustainability performance. By starting to prepare for the CSRD now, companies can identify areas where they need to improve and take steps to make those improvements.
Build trust with stakeholders: The CSRD will increase the transparency and accountability of companies, enabling investors and other stakeholders to better understand a company’s sustainability performance and risks. By preparing for the CSRD now companies can demonstrate their commitment to sustainability and build trust with their stakeholders.
Making sure that a sustainability report not only looks good on paper but is also embedded in your organization culture might be the hardest part. Luckily there is a way to get started with that. At hello energy we help organizations with getting everyone engaged on sustainability. Our newest feature, hello energy challenges, will challenge everyone in the organization to participate in sustainable practices in a fun way.
There is a lot to do and it is hard to get started but we are up for the challenge. Will you join us?