Get ready to comply with the CSRD with five key points!

10/9/2024
by :
Lucile de Castelbajac

The Corporate Sustainability Reporting Directive (CSRD) represents a fundamental shift in how companies must report their environmental and social impact, both in Europe and globally. Designed to replace the Non-Financial Reporting Directive (NFRD), the CSRD significantly expands reporting requirements for a greater number of companies. This regulation focuses on transparency, sustainability, and risk management related to climate change and biodiversity. Here, we present five key points every company should know to prepare for this new regulation.

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  1. A Phased Timeline

The CSRD will follow a progressive timeline, meaning different types of companies will have different deadlines to comply with the new reporting requirements. This phased approach is designed to give companies adequate time to adapt to the new demands:

  • 2024: Large listed companies, banks, and insurers already reporting under the NFRD must begin implementing the CSRD in their annual reports.
  • 2025: Companies meeting at least two of the following criteria: more than 250 employees, over €40 million in net turnover, or over €20 million in assets.
  • 2026: Listed SMEs and small insurers must begin to comply with the CSRD.
  • 2028: Non-European companies with net turnover exceeding €150 million and significant operations in Europe

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  1. Reporting Requirements

Companies will be required to provide detailed information on key topics such as:

  • Environment: greenhouse gas emissions, water consumption, and waste management.
  • Social Responsibility: human rights, working conditions, and diversity in executive boards.
  • Governance: anti-corruption and anti-competitive practices.

The CSRD also introduces the principle of "double materiality," which means companies must report not only how climate change affects them but also how they contribute to these risks.

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  1. Tools to Get Started

To raise awareness and prepare employees, we recommend two interactive workshops:

  • The Climate Fresk: A dynamic workshop using IPCC data to understand climate change mechanisms.
  • 2Tonnes Workshop: A practical workshop that helps companies and employees calculate their carbon footprint and develop strategies to reduce it to 2 tons per person per year by 2050.

If you're interested in organizing these workshops or beginning a diagnostic to comply with the CSRD, please contact us.

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  1. How Does the CSRD Affect Mexican Companies?

Though the CSRD is a European regulation, its impact is global, directly affecting many Mexican companies that:

  • Are part of European supply chains: Companies selling to giants like Danone or L’Oréal Mexico must meet CSRD sustainability requirements to continue as suppliers.
  • Subsidiaries of European companies: Mexican companies operating as subsidiaries of European companies will also be required to comply with this directive.

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    1. Verification and Transparency: A Requirement

    External verification of sustainability reports will be mandatory, ensuring data accuracy and strengthening trust in companies' sustainability commitments. The B Corp certification is an excellent tool for identifying areas of improvement in sustainability reporting, and as a certified company, Nosotrxs can support you in this B Corp diagnosis and certification process.

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    Para concluir: 

    In Conclusion:The CSRD represents a major step toward greater transparency and corporate responsibility in sustainability matters. While it is a European regulation, its impact will extend to many Mexican and Latin American companies. Preparing now will not only ensure compliance but also offer an opportunity to enhance reputation and attract sustainability-focused investors. The Climate Mural workshop is a crucial first step in raising awareness and preparing your company for this transition, ensuring genuine commitment to a more sustainable future.