Originally published by Environment+Energy Leader
Everything U.S. companies know about sustainability reporting is about to change. For years, U.S. company sustainability reports have been voluntary disclosures that provided varying details into an organization’s corporate responsibility initiatives and their impact on society. However, under the European Union (EU) Corporate Sustainability Reporting Directive (CSRD), companies doing business in Europe will need to develop robust reporting procedures to ensure they meet the requirements set forth by EU regulators or risk non-compliance penalties and public scrutiny.
At a high-level, the CSRD contains significantly enhanced criteria for monitoring and reporting relevant environmental, social and governance (ESG) information. Companies that are conducting business in Europe will need to assess roughly 1,200 indicators surrounding their sustainability impacts, risks and opportunities. All this information must then be put into a detailed report that presents the company’s qualitative and quantitative disclosures with the same rigor as financial reporting.
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Contact a Baker Tilly specialist today to learn how teams in the U.S. and EU can simplify reporting and navigate a successful CSRD journey.