Around 41% of businesses will struggle to provide the data required to comply with new Corporate Sustainability Reporting Directive (CSRD) regulations.
nShift, a global delivery management software provider, states that companies that delay carbon emissions tracking will find it more challenging to comply.
The CSRD requires companies to report on the impact of corporate activities on the environment and society and requires the audit (assurance) of reported information.
The CSRD updates and replaces the existing Non-Financial Reporting Directive (NFRD) and Accounting Directive (2013/34/EU), and went into effect throughout the European Union (EU) starting January 1, 2024. It’s estimated that 50,000+ companies who do business in Europe will eventually need to report and comply with ESRS.
According to reports, EU Member States must comply with CSRD by July 6, 2024, and companies must repeat the same ESG reporting cycle for fiscal year 2025.
Mattias Gredenhag, CTO, nShift, said, “…For e-commerce and multi-channel retailers, this will include tracking the emissions on shipments. The longer businesses leave it, the steeper the climb to compliance will be. But the right tracking tools will give the business the data needed and make sustainability reporting easy.”
Experts noted that the scope of CSRD extends to companies beyond the EU domicile, hence Indian companies with global operations and aspirations must proactively align their reporting practices with these international standards to remain competitive, attract investments, and address evolving stakeholder expectations.
