The ultimate goal? A smooth transition to a sustainable European economy, based on the 2015 Paris Climate Accord. Under pressure from investors, banks, governments, customers, suppliers, and other stakeholders, many companies see the CSRD as a real driver for change. How will these regulations become a game changer for your business?
"}},{"componentType":"sectionTitle","title":"About the Corporate Sustainability Reporting Directive"},{"componentType":"paragraph","richBody":{"value":"The European Commission elaborated the CSRD with the ambition of achieving a climate neutral Europe by 2050. This directive amends a number of existing directives and expands their scope. One of them is the so-called Non-Financial Reporting Directive (NFRD), which today applies to about 12,000 organizations operating in the EU. The CSRD will impact an estimated 49,000 companies.
The CSRD is part of a package of measures that aims to funnel additional financial resources in the European Union toward sustainable activities. Transparency around ESG performance provides various stakeholders with accurate information to make investment decisions or to collaborate.
"}},{"componentType":"sectionTitle","title":"Rollout of CSRD in three stages"},{"componentType":"paragraph","richBody":{"value":"Implementation of the CSRD occurs in three stages. At which stage your company must comply to the directive depends on your business size. The timeline is as follows:
For unlisted SMEs, a lighter CSRD variant that is more feasible for them will be considered.
"}},{"componentType":"sectionTitle","title":"The impact of CSRD on your business"},{"componentType":"paragraph","richBody":{"value":"The impact of CSRD on your business is significant. What components will you have to report?
Data based on the so-called double materiality principle:
This principle tests the impact in terms of materiality on the business and the impact of the business.
-The impact on the business: what is the financial impact of the risks and opportunities on your business? For example, think about resource scarcity or production disruptions due to extreme weather conditions.
-The impact of the business: what is the material impact your business has on people and the environment ? Some examples are carbon emissions, the use of non-reusable raw materials or an effective training program for your business employees.
Company information on long-term sustainability goals, including the evolution of company efforts to achieve these goals;
Information on intangibles such as social capital (in addition to objective metrics such as environmental performance);
A reporting in line with other recent European regulations, such as the Sustainable Finance Disclosure Regulation (SFDR) and EU Taxonomy;
The requirement to have the sustainability report reviewed by an accountant and to make the report available in electronic format.
This reporting will have to be done using a binding reporting standard: the ESRS. The European Sustainability Reporting Standards is the binding reporting standard with which companies must comply. This standard specifies which matters a company must make transparent in its reporting, the so-called "disclosure requirements." These requirements deal in a general sense with risks, impact, strategy, policy, and governance, but also with specific themes regarding ESG aspects.
"}},{"componentType":"sectionTitle","title":"The benefits of CSRD reporting"},{"componentType":"paragraph","richBody":{"value":"Investing in CSRD reporting provides your company with a better grip on non-financial indicators related to business activities. For example, you will gain clear insight into new cost-saving opportunities (through energy reduction, for example) or possible innovations in the production process.
Thanks to the CSRD, it also becomes clearer how your business activities relate (strategically) to the increasingly stringent European ESG regulations. This additional insight makes your organization more agile and future-proof. In other words, actively working on ESG gives you a competitive advantage over companies that do not yet have a reporting obligation.
ESG reporting also gives you long-term opportunities to streamline your own production and supply chain from a sustainability perspective. This allows you to establish strategic partnerships and identify future bottlenecks at an early stage. This in turn provides additional supply chain continuity.
"}},{"componentType":"sectionTitle","title":"What we remember about the CSRD"},{"componentType":"paragraph","richBody":{"value":"Developing the right ESG regulations is a tough challenge for many organizations. The number of ESG metrics is vast and varies by sector, company size, and complexity. So as a company, it is best to start preparing for the CSRD as early as possible, so that you can start collecting the necessary data and setting up a governance structure in time for the start date.
"}},{"componentType":"highlight","title":"Expert advice pays off","richBody":{"value":"As a financial partner for entrepreneurs and the self-employed, ING makes maximum use of its expertise to clearly identify climate challenges, linked to green investments. We help our clients to achieve their sustainability goals by consulting and proposing financial solutions.
If you want to know more, contact us.
"}},{"componentType":"sectionTitle","title":"And now?"},{"componentType":"paragraph","richBody":{"value":"In the context of CSRD, the ING Sustainable Buildings Guide is also a valuable tool. This free application not only gives you insights into making your specific commercial property more sustainable, but also helps you set priorities: which investments can make your commercial property(s) more energy efficient, what is the cost per intervention and how can you reduce CO2 emissions?
"}},{"componentType":"cta","textLink":{"url":"/en/business/sustainable-business/sustainable-buildings-guide-en","text":"Discover the ING Sustainable Buildings Guide"}}]},"complementaryZone":{"flexComponents":[{"componentType":"cards","cards":[{"componentType":"articleCard","cardType":"article","cardSize":"medium","title":"Attractive interest rates for sustainable investments","body":"Financing agreement with the EIB","image":{"transformBaseUrl":"https://assets.ing.com/transform/22dcb7ce-45bb-4e64-a29e-c9ac0eb762a8/Windmills-at-sea","type":"image","width":5842,"altTextEN":"Windmills at sea","altTextNL":"Windmolens op zee","altTextFR":"éoliennes en mer","original":"https://assets.ing.com/m/6b74974ec82a73ef/original/Windmills-at-sea.jpg","extension":"jpg"},"link":{"url":"/en/business/sustainable-business/attractive-rates-sustainability"}},{"componentType":"articleCard","cardType":"article","cardSize":"medium","title":"Investing in sustainable property?","body":"Discover the social, economic and environmental benefits.","image":{"transformBaseUrl":"https://assets.ing.com/transform/5ec77a4a-988c-472f-86f5-52b58ef69ec6/sustainable-investing-1920","type":"image","width":1920,"original":"https://assets.ing.com/m/5405c734f6764dd3/original/sustainable-investing-1920.jpg","extension":"jpg"},"date":"2024-10-18","link":{"url":"/en/business/sustainable-business/benefits-investing-sustainable-real-estate"}}]}]},"legalZone":{"flexComponents":[{"componentType":"paragraph","title":"Good to know","richBody":{"value":"The standards, requirements, and obligations mentioned in this article may change regularly and are for information purpose only. We therefore recommend that you check the specific regulations and requirements with the appropriate authorities in the relevant region for the latest information and you seek professional advice on a case-by-case basis before making a decision.
ING Belgium SA/NV cannot be held liable for any decision taken on the basis of the information provided.
"}}]}}}