How do large companies currently link CSRD reporting to their overall business strategy? EFRAG has carried out an interesting (albeit qualitative) study to find out where large companies currently stand in the implementation of the CSRD (Corporate Sustainability Reporting Directive) and in particular how they are dealing with the first step, the required dual materiality assessment. ❗ The most impressive figure for me is that 85% of the companies surveyed use the results of the materiality analysis not only for reporting, but also to inform the overall corporate strategy and as a basis for decision-making. For me, this is a first success of the directive and shows that the complex regulation has been set up in the right way. Reporting is not an end in itself, but should be a strategic tool for the development of a company and for top-level decisions. The CSRD seems to fulfil this purpose. For more information, for example on the important topic of data management and other exciting findings, take a look at the study results for yourself: https://lnkd.in/ekJAj5WX #CSRD #sustainability #reporting #strategy
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New and helpful Guidance published by EFRAG today on the Implementation of European Sustainability Reporting Standards (ESRS): Initial Observed Practices from Selected Companies. Interesting (but not surprising) findings in relation to Value chain being one of the most challenging and least mature areas for undertakings; and on the complexities of Double Materiality Assessments - including the drive to find a more data-driven approach that relies less on individual judgement. Happy reading! #csrdreporting #csrd https://lnkd.in/ghvMUdEF
EFRAG_ESRS initial observed practices Q2 2024 final version.pdf
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📣 𝐍𝐞𝐰 𝐑𝐞𝐩𝐨𝐫𝐭: 𝐈𝐦𝐩𝐥𝐞𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐄𝐮𝐫𝐨𝐩𝐞𝐚𝐧 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐑𝐞𝐩𝐨𝐫𝐭𝐢𝐧𝐠 𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐬 𝐛𝐲 𝐋𝐚𝐫𝐠𝐞 𝐄𝐔 𝐂𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬 📗🇪🇺 A recent report by EFRAG, in collaboration with Boston Consulting Group (BCG), reveals promising trends and ongoing challenges in the integration of European Sustainability Reporting Standards (ESRS) among large EU companies. 🌿 Data-Driven Approaches: 70% of companies are integrating stakeholder inputs for better ESG data. 📊 Materiality Challenges: Only 40% effectively assess the materiality of data points. 🚛 Value Chain Reporting: 90% are still refining their value chain mapping. 🤝 Support Needed: Ongoing guidance is essential for robust sustainability reporting For more insightful facts and figures, check out the detailed report: #ESRS #EuropeanSustainabilityReportingStandards #EU #DataDrivenApproach #Materiality #ValueChainReporting #ESG #ESGReporting #ESGStandards #SustainabilityReporting
EFRAG_ESRS initial observed practices Q2 2024 final version.pdf
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EFRAG released a study on CSRD Reporting. The objective of this study is to illustrate preliminary practices related to the implementation of European Sustainability Reporting Standards (ESRS). 💡very interesting: ~90% of the the undertakings are still working to refine their VC mapping looking for the right granularity of balance 🏑 ~ 85% of the undertakings intend to include ESG reporting and the result of the DMA in the Business strategy 🎹 Clear Governance function including lead roles are needed The study gives a good overview about the current situation of preparing and conducting CSRD reporting ✔️👌
EFRAG_ESRS initial observed practices Q2 2024 final version.pdf
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EFRAG has published a study setting out early insights on the implementation of the European Sustainability Reporting Standards (ESRS). It is focused specifically on large listed and unlisted companies that will be required to report against the ESRS. The study sets out practices and challenges observed by a sample of large companies in the initial stages of ESRS implementation focusing on four areas: 1) the double materiality assessment; 2) data points; 3) value chain; and 4) ESG reporting organisational approaches. #CSRD #ESRS #SustainabilityReporting https://lnkd.in/eHUZc-Vv
EFRAG_ESRS initial observed practices Q2 2024 final version.pdf
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EFRAG finalizes two guidelines for implementing the requirements of the sustainability reporting standards (ESRS) and a list of ESRS data points. On May 31, 2024, EFRAG published final guidance on the application of the European Sustainability Reporting Standards (ESRS) and a list of ESRS data points. The guidelines, which were already available for consultation in December 2023, are intended to facilitate the implementation of the ESRS. They deal with dual materiality, the value chain and contain frequently asked questions. The guides and the list are available on the EFRAG website. http://lnkd.in/eSUk5est Supplementary documents from EFRAG http://lnkd.in/eRvEMUjx
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I get a lot of questions from Non-EU companies with significant operations within EU - some help can be found here! This document clarifies the background information about the Non-EU European Sustainability Reporting Standards (ESRS) in the context of the Corporate Sustainability Reporting Directive (CSRD). Non-EU companies with significant activities in the EU (over €150 million net turnover) must provide sustainability reports starting from the 2028 financial year. These reports will follow specific ESRS standards for non-EU entities. Chapter 9a of the Accounting Directive outlines the relevant provisions for non-EU entities, including exemptions for certain subsidiaries and the requirement for an assurance opinion on the report's accuracy. The content for non-EU ESRS disclosures aligns with certain sections of article 29a of the Accounting Directive, although some points are excluded. Large non-EU groups with subsidiaries in the EU may consolidate reports to cover EU subsidiaries, avoiding separate reports for each entity under certain conditions. Be aware — Non-EU companies seeking finance from EU-based investors may benefit from aligning with European Sustainability Reporting Standards (ESRS) before the 2028 requirement. By adopting ESRS early, these companies can appeal to sustainability-focused investors, gain a competitive edge, improve access to capital, and future-proof against compliance challenges. Early alignment demonstrates transparency, reduces perceived investment risks, and can lead to better financing terms!
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The EU continues to spearhead global sustainability reporting standards, with Australia poised to adopt similar measures in the near future. Key findings: ➡ 85% plan to integrate ESG reporting and Double Materiality Assessment into business strategy ➡ 70% have shifted to objective, evidence-based Double Materiality Assessment ➡ Quantitative measures of IROs now used to determine material topic relevance ➡ Evidence-based approach incorporates internal data, third-party sources, and expert input ➡ 45% have adopted more detailed value chain mapping ➡ 70% combine surveys with interviews/workshops for stakeholder engagement ➡ 75% using phase-in data points for initial reporting These trends signal a move towards data-driven, comprehensive ESG reporting practices. https://lnkd.in/guf3QDeB #ESRS #Sustainability #CorporateReporting #ESG
EFRAG_ESRS initial observed practices Q2 2024 final version.pdf
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The European (#EU) Commission has released a set of Frequently Asked Questions (#FAQs) that clarifies the interpretation of certain provisions on sustainability reporting introduced by the Corporate Sustainability Reporting Directive (#CSRD) (Directive (EU) 2022/2464) into the Accounting Directive (Directive 2013/34/EU), the Audit Directive (Directive 2006/43/EC), the Audit Regulation (Regulation (EU) No 537/2014), and the Transparency Directive (Directive 2004/109/EC) with the aim of facilitating their implementation by undertakings. It also clarifies certain provisions of the Sustainable Finance Disclosures Regulation (#SFDR) (Regulation (EU) 2019/2088). Read more 🔗 https://lnkd.in/du_Y7dFX
Frequently asked questions on the implementation of the EU corporate sustainability reporting rules
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Accountancy Europe has updated the list of frequently asked questions (FAQs) about the Corporate Sustainability Reporting Directive (CSRD). Read more 🔗 https://lnkd.in/dMp7hvdj #AccountancyEurope #news #FAQs #CSRD
FAQs: all you need to know about the Corporate Sustainability Reporting Directive - Accountancy Europe
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The European Commission has released a communication providing practical clarifications on legal provisions related to sustainability reporting, aligning with Directive (EU) 2022/2464 (CSRD). This guidance aims to support businesses in implementing the European Sustainability Reporting Standards (ESRS) and associated requirements. Key takeaways: • Guidance, Not New Rules: The document ensures a clearer understanding of existing sustainability reporting requirements without introducing additional obligations. • Enhanced Support: Includes FAQs and references to tools like EFRAG’s materials to assist businesses in complying with ESRS. • Focus on Efficiency: Supports cost-effective reporting, reducing administrative burdens while improving data usability and comparability. This communication complements CSRD by streamlining implementation and reinforcing compliance efforts. It’s a valuable resource for businesses navigating the evolving landscape of sustainability reporting. 📘 Learn more about these clarifications and how they might impact your approach: https://lnkd.in/dpZGY_H4 #Sustainability #ESG #CSRD #CorporateReporting
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OnPurpose Fellow | post-growth | regenerative economy | steward ownership
4moDas macht ja mal Hoffnung :) Danke fürs teilen ☺️