The introduction of the Corporate Sustainability Reporting Directive (CSRD) on January 1st, 2024, marks a significant milestone in the European Union’s approach towards Environmental, Social, and Governance (ESG) considerations. As Europe steers its financial landscape towards a more sustainable future, recent insights from a Bloomberg survey of approximately 200 European financial market participants shed light on a burgeoning challenge: the effective management of the escalating volume of ESG data.
CSRD Reporting Timeline
Companies will either be affected directly or indirectly by CSRD requirements. Companies not included in the reporting timeline will face ESG reporting requirements from banks, clients, customers, suppliers etc. who themselves are included in the CSRD timeline.
In response to the identified challenges, companies are actively engaging with various data management strategies in order to implementing ESG reporting. Notably, 10% of firms from the Bloomberg survey opt for outsourcing their ESG data management to third-party vendors, leveraging external expertise and resources. The number of firms outsourcing their ESG management might increase among SMEs due to both limited internal resources and capabilities required to do ESG reporting by yourself. SMEs account for 99.8% of all enterprises in the European non-financial business sector. According to the timeline above CSRD is not only relevant to large businesses which gives the European SME market a pivotal role in the sustainable movement.
ESG Reporting Intelligence offers European companies a comprehensive ESG solution within both environmental, social and governance issues as the slogan states: ‘All your ESG needs in one platform’. ESG Reporting Intelligence is in particular the convenient solution for European SMEs with attractive pricing. Together with ESG Reporting Intelligence organisations can discover their full ESG potential through several activities such as risk materiality, mitigation strategies and reporting.
ESG Reporting Intelligence offers reporting options giving companies a unique ESG approach benefitting internal and external stakeholders as it has never been easier to present ESG progress. Suppliers, investors, customers, and clients are some of the stakeholders benefitting from working with ESG Reporting Intelligence.
ESG Reporting Intelligence is the new business partner, trainer, staff, and technology for all European businesses seeking the complete ESG solution.
Contact details
Niels Jensen – ESG Consultant
Niels.J@esgri.com
+45 4252 3762
Copenhagen, Denmark
Bibliography
Bloomberg
Available at: https://www.bloomberg.com/company/press/bloomberg-survey-reveals-esg-data-coverage-and-management-as-top-challenges-for-firms-in-europe/
[Accessed 7 March 2024].
European Commission
Available at: https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en
[Accessed 7 March 2024].
Virksomhedsguiden
Available at: https://virksomhedsguiden.dk/content/temaer/baeredygtig-omstilling/ydelser/csrd-lovkrav-til-virksomheders-baeredygtighedsrapportering/62c314cd-4e5f-422c-9f55-6f43873fd25e/
[Accessed 7 March 2024].