The Corporate Sustainability Disclosure Directive or CSRD now emerges as a critical piece in the jigsaw puzzle towards a more sustainable future. In this article, we explore how these guidelines are shaping the path towards more responsible and transparent business practices, addressing their impact on sustainability and their relevance for the current and future business landscape. For yes, it is here to stay. But first, we need to understand the keys.
What is the CSRD?
The European Commission has adopted a number of measures to boost sustainability in the corporate sector, and one of the most relevant is the Corporate Sustainability Disclosure Directive (CSRD). This directive establishes stricter standards for non-financial disclosures by companies, with the aim of improving transparency and accountability in relation to their environmental, social and corporate governance impacts.
The CSRD extends the scope of the existing Non-Financial Reporting Directive and requires more companies to report on their sustainability performance. In addition to large listed companies, it now also includes medium-sized and small companies, as well as some unlisted entities. This means that significantly more organisations will be required to produce detailed and transparent sustainability reports.
At Rhenus we are committed to this. We therefore generate emissions reports to, on the one hand, inform our customers of the CO2 emissions arising from the transport of their goods and, on the other hand, to assist in the preparation of these sustainability reports to comply with the CSRD.
Application of CSRD in logistics
In the logistics sector, CSRD has equally important implications. Such companies play a crucial role in the supply chain and have a significant impact on areas such as carbon emissions, natural resource consumption and employee working conditions. They are therefore under increasing pressure to report accurately and comprehensively on their sustainability performance.
At Rhenus, we are aware of the importance of sustainability in logistics and are committed to meeting the requirements. We strive to implement sustainable practices throughout our operations, from optimising routes to using more efficient technologies and promoting a corporate culture focused on environmental and social responsibility.
Is it already in force?
Yes, the CSRD entered into force on 5 January 2023, with different deadlines for implementation depending on the size and type of company. Since then, companies subject to this directive must prepare to comply with its requirements and start producing more detailed and transparent sustainability reports.
Who is affected?
The CSRD affects more than 49,000 European companies, including all companies listed on EU regulated markets, large European companies and subsidiaries of non-EU companies operating in the EU, as well as insurance companies and credit institutions, among others. In addition, listed micro-enterprises and non-listed SMEs may choose to comply with its provisions on a voluntary basis.
What information must a company provide?
In addition to the mandatory requirements set out in the CSRD, it should be noted that there are a number of new developments that also promote greater transparency in sustainability disclosure. Companies will therefore be required to provide sustainability-related information, including:
- Description of the organisation's business model and strategy.
- Sustainability objectives set by the company with a time horizon.
- Role of the administrative, management and supervisory bodies related to sustainability.
- Sustainability policies of the company.
- Incentive schemes offered to members of the administrative, management and supervisory bodies that are linked to sustainability issues.
- Sustainability due diligence procedures.
- List of the main sustainability-related risks.
CSRD increasingly important to customers
Customers increasingly value not only efficiency and reliability in logistics services, but also a company's commitment to sustainability. Transparency in disclosing information on sustainable practices not only enhances a company's reputation, but can also influence customers' purchasing decisions. Companies that demonstrate a real commitment to sustainability will have a competitive advantage in a marketplace that is increasingly aware of the environmental and social impact of their actions.
The CSRD is changing the landscape of corporate sustainability disclosure, and logistics companies are no exception. At Rhenus, we are ready to meet this challenge and remain committed to sustainability in all our operations, responding to the increasing expectations of our customers and contributing to a more sustainable future for all.