CSRD + ESRS = Sustainable development?

The objective of the CSRD Directive set by the EU and the ESRS standards supporting it is to promote companies' responsibility work and improve the reliability of sustainability reporting. Tightening regulation in companies significantly increases the work required for reporting, and there is not much time.

The objective of the CSRD Directive set by the EU and the ESRS standards supporting it is to promote companies’ responsible work and improve the reliability of sustainability reporting. In Finland, the directive has already been brought into our national laws, the most significant of which was made to the Accounting Act. Not all companies have welcomed the tightening regulation, but many of them have already initiated processes that meet the requirements of the law. There is a lot of work to be done and not much time, so it is worth acting.

The annual reports published during the spring already indicate how responsibility reporting and the reports of the Board of Directors will change. For companies that have completed their dual materiality assessments and at least partially met the data requirements under the ESRS, the reports of the Board of Directors have expanded considerably. For some, the chapters of sustainable development may be longer than other contents. It is said that knowledge increases pain, but at least the production of more knowledge has increased pain.

Experiences of the benefits of sustainability reporting are not very uplifting, at least not yet. Neither investors nor other stakeholders have asked many questions about more in-depth sustainability information, and the media has not written about it. One might ask whether more accurate reporting really promotes sustainable development, or is the work done by companies wasted? It will probably take time for stakeholders to familiarise themselves with more detailed sustainability information, but it will be companies getting the biggest benefit from both the process and the end result. High-quality sustainability information makes it easier to steer business towards future success. And in a carefully reviewed double materiality assessment, the company prepares to respond to various threats, but also to find new opportunities in a world where it is necessary to promote sustainable development.

It is advisable to start taking over the CSRD now at the latest. Contact us and let’s continue the discussions.