The European Commission’s new proposal would greatly reduce the number of companies required to comply with the CSRD. We use "would" because as of yet, that is not a given. This means that a large proportion of companies are faced with a time of uncertainty. These are the no-regret actions which will give your company a competitive advantage - regardless of the eventual outcome.
The CSRD, CSDDD and EU taxonomy are conceived as sustainability tools, but also as powerful management tools. Among other things, they contribute to transparency, strategic insight, risk management and sustainable human resources management. And that was not lost on investors: by 2024, European companies already claimed €440 billion in capital spending in line with the EU taxonomy.
Below we go through 4 concrete steps which will benefit your business today - even if the CSRD is updated in the future.
1. Create a unique ESG roadmap.
The foundation of any strong sustainability strategy is the double materiality analysis. That analysis, regardless of any regulations, is essential to make informed decisions and take strategic actions. Moreover, it is a cornerstone of the CSRD – and remains so in the European Commission's new proposal.
Based on the double materiality analysis, you set your ambitions and targets for each ESG pillar: ecological targets reduce both your dependence on raw materials and your exposure to risk, social actions improve your relationship with employees and stakeholders, and good governance contributes to efficiency and engagement - to name just a few examples.
2. Reduce your carbon footprint
To reduce your carbon emissions, you must first measure them. That information remains relevant, CSRD or no CSRD:
- CO₂ pricing: around 40 countries already use a carbon tax or emissions trading system (ETS).
- Scope 1, 2 and 3 emissions reporting has become an international standard.
Reducing your emissions is not just something you do for the climate either. Improving the efficiency of processes, vehicles and buildings reduces costs and decreases your dependence on energy prices and raw materials. Electrification in particular not only benefits the climate, it is also much more efficient.
3. Monitor priority KPIs
Define your KPIs, develop a monitoring system, and use this data not just for your CSRD reporting but also to make better strategic decisions.
Need help with that? We offer implementation processes to efficiently collect and monitor your data. Additionally, we help you motivate employees to put their weight behind this process.
4. Start reporting in the spirit of the CSRD
If you have completed the above steps, you already hold all the elements for a sustainability report. If you are not yet subject to CSRD, you can publish a simplified report, for example one according to EFRAG's VSME standards.
Whatever format you choose, a sustainability report offers a unique opportunity for strong storytelling: it shows that sustainability is not a formality for you, and positions your company as a proactive player in this transition. We can get you started with a sustainability narrative, the unique story behind your company, and a communicative sustainability report that speaks to all your stakeholders.
The inherent benefits of a strong sustainability strategy remain intact. So don't let political uncertainty distract you. Whatever the CSRD will look like in the future, companies that take action now will take a head start.
Are you still left with questions about our implementation processes, the sustainability narrative, calculating your carbon footprint or developing your first sustainability report? Don’t hesitate to contact our experts.
