Discover how the CSRD affects non-EU groups & EU subsidiaries and explore key implications for your business.
Challenges and stakes in CSRD compliance
In the ever-evolving landscape of corporate sustainability, the Corporate Sustainability Reporting Directive introduced by the European Union (EU) has emerged as a pivotal development. As businesses worldwide strive to meet environmental, social, and governance (ESG) objectives, understanding the challenges and stakes associated with CSRD compliance becomes essential. Here, we delve into the context of this directive, breaking down the complexities into digestible insights for businesses of all sizes.
The CSRD context
- Expanding regulatory reach: The CSRD brings a critical shift by extending its reach beyond EU borders. Non-EU groups and their EU subsidiaries are now within its scope, irrespective of their geographical location. This expansion poses unique challenges and opportunities.
- Levelling the playing field: The primary objective of the CSRD is to ensure a level playing field for all economic players operating in the European market. It aims to harmonise sustainability reporting with financial reporting standards, emphasising transparency.
- Timelines and implementation: The CSRD imposes specific timelines for compliance. Understanding these timelines and planning accordingly is crucial to avoid penalties and ensure a smooth transition.
Challenges faced by businesses
- Scope determination: One of the initial challenges is identifying whether your company falls under the CSRD's scope. Does it have securities listed in the EU? Does it have significant activity in the EU? Is it a parent company of EU subsidiaries? These questions need precise answers.
- Varying compliance dates: Depending on your company's size and characteristics, the compliance dates vary. Smaller companies may have more time to adapt, while large listed subsidiaries must act sooner.
- Alignment: The CSRD comes into force shortly after the Swiss non-financial reporting obligations (Swiss CO Art.964). Understanding how to satisfy reporting obligations in multiple jurisdictions is pivotal for gaining efficiencies.
- Consolidated reporting: Non-EU parent entities are now required to prepare consolidated sustainability reports that cover all EU and non-EU subsidiaries. This adds complexity to the reporting process.
Our added value
- Simplified compliance: We demystify CSRD compliance, providing you with clear, actionable steps.
- Strategic insights: Our experts offer strategic insights to help you turn CSRD into a competitive edge.
- Efficiency and accuracy: We streamline the reporting process, ensuring accuracy while minimizing resource allocation.
Call to action
Download now to gain a thorough understanding through practical cases and explore the regulatory options in this evolving compliance landscape.
As CSRD compliance becomes a strategic imperative, partner with us to navigate this transformative journey effectively. Contact us today to unlock the full potential of sustainability reporting and gain a competitive edge in the evolving global marketplace.