At Gestión de Compras, we are always attentive to regulatory changes that impact our sector and the industries we work with. In 2024, we highlight the implementation of the Corporate Sustainability Reporting Directive (CSRD) of the European Union, a regulation that redefines how companies report on their environmental and social impacts.
What is the CSRD Directive?
The CSRD Directive, published in the Official Journal of the European Union on December 16, 2022, aims to expand and deepen sustainability reporting obligations for companies. It came into effect on January 5, 2023, and EU Member States must transpose its provisions into national law by July 6, 2024. Implementation will be staggered, starting with large companies already subject to the Non-Financial Reporting Directive (NFRD) and gradually extending to other companies, including listed SMEs.
Key Environmental Obligations
The CSRD requires companies to report on a series of environmental aspects:
- Climate Impact: Detailed information on greenhouse gas emissions and the measures to mitigate these impacts.
- Resource Use: Information on water and energy use, waste management, and sustainability practices in the use of natural resources.
- Biodiversity: Impact on biodiversity and measures for its protection and restoration.
- Pollution: Actions to prevent, mitigate, and remedy pollution.
- Circular Economy: Recycling practices, product reuse, and waste reduction.
- Ecological Transition: Contribution to a low-carbon and sustainable economy, including investments in clean technologies.
Carbon Footprint Reporting
One of the most significant new requirements of the CSRD is the obligation to report on the carbon footprint, covering Scope 1, 2, and 3 of greenhouse gas (GHG) emissions:
- Scope 1: Direct emissions from sources controlled by the company.
- Scope 2: Indirect emissions from the generation of energy consumed by the company.
- Scope 3: Indirect emissions across the entire value chain, including those associated with the production of materials and the use of sold products.
Key Differences from the NFRD
The CSRD introduces several improvements and expansions compared to the NFRD:
- Broader Scope: It includes all large companies and listed companies on regulated markets in the EU, excluding micro-enterprises.
- More Detailed and Standardized Reporting: Introduction of mandatory standards developed by the European Financial Reporting Advisory Group (EFRAG).
- Auditing of Sustainability Reports: Reported data must be audited, ensuring greater reliability.
- Digital Reporting: Use of “XBRL taxonomy” to report sustainability information in a digital format.
- Inclusion of Scope 3 GHG Emissions: Explicit requirement to report on this scope.
- Separate Sustainability Statement: Greater clarity and focus on sustainability information, requiring a specific statement, even if it may be part of the management report.
Conclusion
The CSRD Directive represents an important step towards greater transparency and corporate responsibility in terms of sustainability. At Gestión de Compras, we understand the relevance of these changes and are committed to adapting to these new requirements, promoting more sustainable and responsible practices in the industrial sector.