ESG
To ensure companies are well prepared , leaders should start acting as soon as possible to prepare for the new rules . “ Firstly , take time to prepare your reporting well ahead of the new regulations coming into play ,” Knapp recommends . “ It ’ s also important to understand whether your Intelex Technologies will fall under the new rules and what timescale you will be working towards .
“ Business leaders then need to identify and understand what is currently being reported on , to then ensure the sustainability targets are robust and based on the correct methodology . Last but not least , key employees need to be trained on CSRD and measurement .”
CSRD ’ s impact on business outside of Europe “ The CSRD is an important part of delivering the European Green Deal – the journey to a carbon-neutral Europe ,” Knapp says . He explains that these new regulations will not only dramatically increase the number of EU businesses who are subject to mandatory ESG disclosures , but the CSRD will also impact non-EU companies that have substantial activity in the EU . As a result , in 2029 , non-European and international companies that have branches or subsidiaries will have to start following suit with these reporting regulations .
Additionally , the CSRD aligns with other global initiatives such as the ISSB ( International Sustainability Standards Board ) and SEC ( US Securities and Exchange Commission ) which have different rules but common goals for sustainability reporting standards that will need to be considered .
sustainabilitymag . com 93