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  • Writer's picture Nick Luijt

Upcoming regulations on sustainability (CSRD), And how to explain this to your grandmother...



It is no news that sustainability is high on the agenda. Even my grandparents know that and luckily the European Union (EU) thinks so too. Here is a brief introduction of what the CSRD actually is and for what companies it applies.


In April 2021, the European Commission made a proposal to extend the number of companies needing to report on non-financial figures (see below), to a much larger group of companies - a total of about 50,000. If you do indeed meet one or more of the following criteria, you will be reporting the non-financial figures in your next report (2023):

  • You have more than 250 employees

  • You make more than 40 million turnover per year

  • You have more than 20 million worth of assets on your balance sheet


Now you think: "what are not financial figures?". Non-financial figures of, in other words, sustainability indicators, are figures that provide insight into example as:

Material matters (Environment):

  • Co2 emissions

  • Raw material consumption

  • Energy generation from consumption

Intangibles (Social):

  • Salary equality

  • Male/Female ratio

  • Employee satisfaction


These non-financial numbers have nothing to do with your income statement or liquidity balance. But everything has to do with the impact you have as an organization on the planet and humanity.


The idea is that these companies report on these indicators from the beginning of 2023. It is not yet known which specific indicators the EU is concerned with (based on current standards as SDG & GRI – more for later talks). This will be announced by a special committee, the EFRAG committee, in mid-2022. And unfortunately, an old-fashioned paper printout of the figures is not sufficient. The EU will request this in a digital format.

So many open questions, but luckily, I can tell my grandmother that we are taking steps towards a more transparent and sustainable future.



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