It’s not always easy to find your way between the different acronyms that surround us in professional life! If you are on the lookout for new legislation to respect for your company, you have probably seen the acronym “CSRD”. So what does CSRD mean? The full name is in English and stands for “Corporate Sustainability Reporting Directive”. In French, this gives “directive on the extra-financial report concerning corporate responsibility”. And yes, sometimes acronyms save a lot of time when you speak or write!
Since this CSR (or corporate social responsibility) directive has just arrived, it may disconcert some business leaders. Find out in this article whether or not your company is affected by this new directive. If so, we give you the advice you need to move forward on the subject. Does all this still seem obscure to you? Training on the subject allows you to comply with your legal obligations.
What does CSRD mean?
The CSRD is a new European directive which entered into force in January 2023. It concerns many companies which, until then, had managed to evade the establishment of legal obligations concerning their social responsibility. It is therefore good news to see this directive increase the pressure on companies to move forward, together, on the path to sustainable development. CSR (or corporate social responsibility) allows companies to be more in tune with the society and environment that surrounds them. It is a tremendous lever for action and performance that should not be overlooked! Read here the directive in its original format and text.
Does CSRD apply to my business?
While it is true that CSR legislation is advancing, it is still far from affecting all companies. Your business must meet at least two of the following three criteria:
- a balance sheet total of more than 20 million euros;
- a net turnover of more than 40 million euros,
- an average workforce of more than 250 employees
The directive also applies to listed companies and certain unlisted companies, including banks, insurance companies and public interest companies.
What does complying with CSRD mean?
Does your business fall under the new directive? This is excellent news, you will finally have a real good excuse to implement a methodology of innovation, action and change. Oh yes, nothing more !
The CSRD provides that companies must write an extra-financial report, also called a CSR report. This report must meet certain requirements and in particular include:
- the presentation of a coherent CSR strategy for the company;
- a description of the main risks and opportunities for the company related to sustainable development,
- an analysis of the main environmental and social impacts of the company, as well as the concrete measures taken to reduce their negative impact,
- a comprehensive analysis of stakeholders and their relationships with the company.
- corporate governance details, including strategies, policies and practices in place,
- description of relationships with stakeholders.
Published once a year, this extra-financial report must be verified by an external auditor or body.
The application of the CSRD aims to take into account the social and environmental issues of sustainable development in the overall strategy of the company. It allows, through the report, to communicate transparently on CSR actions and encourages the implementation of ambitious actions.
Conclusion
Still have questions about CSRD? Not sure about the next steps to take? It’s completely normal, CSR can sometimes seem complex. To dissect all of this and feel confident about the next step, ask professionals on the subject for help! Our consultants have been working for almost 15 years and will be delighted to support you on the subject. Always on the lookout for developments in the field of CSR, sustainable development and responsible management, they will be able to guide you according to your needs and expectations.
