As of last January, the CSRD, Corporate Sustainability Reporting Directive has come into effect, and in the coming years, its scope will continue to expand. Many organizations, especially smaller ones, are wondering what the long-term impact of these reporting obligations will be on their operations.
The answer is that there will most likely be an impact, either directly through the scope of the CSRD or indirectly through the supply chain responsibility of companies that fall directly within its scope.

Beyond such obligations, there are many more reasons to start working on sustainability reporting:

• By complying or even excelling, you can differentiate yourself in your market.
• Organizations that commit to sustainability often attract (young) talent that values environmental and social responsibility. This can increase employee engagement and make the company more attractive as an employer.
• More and more investors and financial institutions are assessing potential investments based on sustainability performance.
• And finally, of course, the intrinsic motivation to conduct business more sustainably.

Preparation

How to start with the preparation? One option is through a readiness assessment. The goal of such an assessment is to evaluate what adjustments are needed to comply with the new reporting standards and to develop an implementation plan. It’s a very practical approach. While a readiness assessment initially requires an investment of time and resources, the long-term benefits in terms of compliance, market position, operational efficiency, and reputation can be significant, as this check:

• can identify inefficiencies in your business and reporting processes.
• can identify potential (liability) risks related to environmental and social issues. This form of proactive risk management can help prevent future costs or reputational damage.
• provides a clear understanding of the CSRD and related sustainability regulations, enabling a company to navigate more effectively through the increasingly complex landscape of environmental laws and regulations, as well as its relationship with relevant regulators.