The Corporate Sustainability Reporting Directive (CSRD), which took effect in January 2023, represents a significant evolution from the European Union’s Non-Financial Reporting Directive (NFRD) of 2014. The CSRD expands the scope and rigor of sustainability reporting, providing detailed guidelines to ensure that companies disclose trustworthy, comparable, and relevant data. Central to the CSRD are key components such as double materiality, the European Sustainability Reporting Standards (ESRS), and enhanced assurance requirements, all aimed at improving the transparency and accountability of corporate sustainability practices.
The directive raises crucial questions for businesses with operations or subsidiaries in Europe: Which companies are affected? What are the compliance timelines? What steps should be taken to align with the new requirements? The SustainAbility Institute by ERM has delved into these issues, offering a comprehensive overview and actionable recommendations for companies embarking on their disclosure journey. These include conducting readiness assessments, designing effective compliance strategies, implementing technological solutions, and following a structured process to ensure accurate and consistent disclosures.
ERM will present on this pivotal topic at ReThink 2024, with a focus on the implications for businesses in Hong Kong and the broader Asia region. The presentation will highlight the need for early preparation, the importance of a holistic implementation approach, and the strategies Asian companies can adopt to align with the CSRD. This session will provide valuable insights into how the CSRD can drive sustainability practices and compliance across the region, positioning companies to meet evolving global standards.