contact rachel cannegieter

Rachel

You have gifts to change the fashion industry and my job is to help you using them.

Most Important Points about new Due Diligence Law You Should Know: CSRD explained

Last year, the European Commission voted for a European due diligence law. This law requires companies to investigate their production chain and correct abuses.

The law, The Corporate Sustainability Reporting Directive (CSRD) requires all large companies to publish regular reports on their environmental and social impact activities, and it helps investors, consumers, policymakers, and other stakeholders evaluate large companies’ non-financial performance. 

With the exception of micro-entities, the CSRD proposals significantly expand the scope of the existing Non-Financial Reporting Directive (NFSD) rules to cover all large undertakings as well as all those listed on EU regulated markets. 

Companies that CSRD is mandatory for include:
  • all EU limited liability companies with 500 or more employees and €150 million or more in worldwide net turnover.
  • limited liability companies operating in defined high-impact sectors, including mining and extractives, agriculture and textiles, that have more than 250 employees and a net turnover of €40 million or more worldwide.
  • listed companies (Small and medium listed companies get an extra 3 years to comply)

We recommend all small and medium companies to do their due diligence.

rio lecatompessy cfDURuQKABk unsplash

Here is a brief overview of the key changes and impacts from the CSRD:

When will it be applicable?
1

2022 – Adoption EU-Directive in member states legislation

2023 – First set of Sustainability Reporting Standards (drafts standards available mid-2022)

2024 – Second set of Sustainability Reporting Standards

Which companies will be applicable?
2

All large companies meeting at least 2 out 3 criteria:

  • >250 employees and/or
  • >€40M Turnover and/or
  • >€20M Total Assets
  • Listed companies

How many companies are subject to the new directive (EU)?
3

49,000

Covering >75% of total EU companies’ turnover

What is the scope of the reporting requirements?
4

Companies should report on (adding additional information from current EU Directive):

  • Double materiality concept
  • Process to select material topics for stakeholders
  • More forward thinking information e.g. targets
  • Disclose information relating to intangibles
  • Reporting in line with Sustainable Finance Disclosure Regulation (SFDR) and the EU Taxonomy Regulation

Is independent 3rd party assurance mandatory?
5

Mandatory – limited level of assurance

Including:

  • Integration in Auditor’s Report
  • Involvement of key audit partner
  • Scope to include EU Taxonomy and process to identify key relevant information

Where should companies report?
6

Inclusion in the Management Report

What format should companies report?
7

To be submitted in electronic format

(in XHTML format in accordance with ESEF Regulation)

Do you need help with your sustainability reporting? As part of our services, we assist brands in consistently communicating their message based on facts and data. For more information, check out our service’s page or get in contact with us today!

Find the latest books

Find the latest Movies and Docu's

Find the latest Podcasts

Find the latest Apps

0 Comments

Submit a Comment

Your email address will not be published.

Certification Chart Version 1 2 mockup

Special! FREE

overview certificates and initiatives

The only overview that won’t confuse you!

Thanks. In a minute or 5 you'll receive a mail with the downloadlinks.