More than ever before, the eye of the general public is fixing on climate change, environmental protection and conservation, sustainability and social factors – one need only mention Corporate Social Responsibility (or CSR for short). The SME sector is already being confronted with a myriad of issues subsumed under ESG (Environment, Social, Governance), not least due to a large number of new laws and regulations. New requirements emanating from the CSRD, EU taxonomy and the Supply Chain Duty of Care Act have not only now come to play a role in compliance – these also translate into an opportunity for companies to position themselves in a sustainable future, helping ensure their viability going forward.
We will be glad to assist you in making your shareholders aware of your company's contribution to a sustainable economy in the form of sustainability reporting.
You can depend on a team that is well-versed in all those things that ensure successful sustainability reporting. Together, we will chart out the best strategy for your company and your stakeholders to meet CSRD requirements. We will be glad to review and optimise your existing sustainability reporting system.
With dhpg at your side, you can be confident that your sustainability report is in line with requirements laid down in the CSRD and the ESRS and certain that you as a company or stakeholder will always remain abreast of the latest developments in ESG regulations.
Our team leverages its experience gained from addressing a large number of client issues to optimise your processes. We know ESG regulations inside out, thus ensuring that you make it through this process smoothly and with relative ease.
Sustainability does not stop at national borders. As part of the CLA Global network, we have over 14,000 colleagues in over 200 offices worldwide. One phone call is all it takes to produce answers to any questions you may have about your reporting.
Do you still have questions about reporting or sustainability in general and would like to arrange a personal meeting? We would be glad to arrange an appointment with you - no strings attached - so that we can get to know each other. We look forward to your giving us a call or sending us an e-mail and hearing from you.
The CSRD significantly expands the scope of application for sustainability reporting to all large corporations and corporate groups, irrespective of their capital market status. Large corporations are deemed to be companies that exceed two of the following three thresholds on two consecutive reporting cut-off dates in accordance with the size categories laid down in Sections 267 (2) and 293 (1) sentence 1 no. 2 of the German Commercial Code (HGB):
Following a transitional period of two years, the regulations are also to apply to SMEs listed on public exchanges, while taking into account their special characteristics.
Above and beyond this, the CSRD also obligates enterprises from third countries that generate net sales of more than € 150 million in the EU and have at least one subsidiary or branch office in the EU to file a sustainability report.
First-time application of the CSRD is to take place in three stages. There is a reporting obligation for fiscal years beginning
With the "Financing Sustainable Growth" action plan from 2018, the EU is pursuing the general objective of being climate-neutral by 2050. Ten measures have been defined to initiate this change in the economy and channel public and private investment into sustainable developments. Two of these are the revision of the CSR Directive and the establishment of a taxonomy of sustainability. All ten measures have the aim of obligating companies to report on their sustainability factors in a transparent and standardised manner.
This does not at first obligate any company to operate sustainably, but rather merely to report on the status quo, sustainability targets and planned measures. The EU hopes that this will influence the market in a way that brings about an efficient allocation of resources. This may mean that companies that are less sustainable than others or even ignore the issue will be penalised in the granting of loans or face problems attracting customers and employees. In the long term, the aim is for sustainability reporting to become as important as financial reporting, which has been at the locus of attention to date.
As an initial step, it is helpful to familiarise oneself already here and now with the CSRD and current draft reporting standards (ESRS) in order to gain a notion of what requirements are to be applied to sustainability reporting in the future. Key issues and topics should then be prioritised for the individual company for inclusion in the sustainability reporting.
It is then important to obtain clarity regarding the status quo in the areas previously specified as essential and to set achievable and, in particular, measurable and quantifiable targets. Existing premises should be identified and key performance indicators defined.
It is then necessary to spell out in concrete terms the content of the reporting, to put reporting systems and processes in place and define responsibilities. As the content to be reported on is extensive and reporting structures often have to be established first, it is advisable to approach the goal step by step and, if necessary, to prepare and have a report reviewed on a voluntary basis before the reporting obligation goes into effect so that in particular major challenges can be addressed at an early stage.
The Corporate Sustainability Reporting Directive (CSRD) amends the Directive on the Disclosure of Non-Financial Information (CSR) from 2014. The CSRD introduces more detailed and standardised reporting obligations in the fields of "environmental", "social" and "governance" (ESG). First of all, the impact of sustainability aspects of the operating environment on the company and, secondly, the impact of the company on the environment and society have to be described. In addition, the CSRD provides for the adoption of mandatory EU standards, which are currently being harmonised. Companies of defined sizes must issue a report on the sustainability of their activities for the first time in the (group) management report for financial years beginning on or after 1 January 2024. The sustainability experts at dhpg will be glad to support you in your reporting as well as assist and guide you with any and all questions you may have relating to sustainability and the CSRD.
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