According to the European Corporate Sustainability Reporting Directive, European companies are obliged to be transparent about the impact of their operations on the environment and society.
The CSRD addresses topics such as CO2 emisions, working conditions and codes of conduct. From 2024 onwards, this directive will apply to companies that meet at least two of these three criteria:
- Have more than 250 FTE
- Have more than €40 million annual revenue
- Have more than €20 million on the balance sheet
Verifiable reports on sustainability
From 2025 onwards, the applicability of the CSRD will be extended to other companies. If you do not yet have a reporting obligation yourself, but your clients do, it is possible that they will ask you to provide information earlier on so that they can disclose their impact in the value chain.
The reporting requirements include:
- The impact must be backed-up with numbers
- The organization must set and measure long-term objectives
- The report must be auditable by an external accountant
CSRD compliance with SmartTrackers
The SmartTrackers software is ideally suited to measure, manage and comply with all CSRD domains and requirements.
The draft standards are expected to be finalized mid 2023. Of course, SmartTrackers will ensure that all definitions are processed into the software in the correct manner.
Since both SmartTrackers and the CSRD are largely based on the Greenhouse Gas Protocol, users already comply with a significant part of the reporting obligation. We will expand our library with gauges, calculations and quality assurance topics. Users will be informed about this in a timely fashion.