CSRD
Responding to COP27’s Main Takeaways
The recent COP27 once again highlighted urgent topics that need global attention, results that were achieved (and unfortunately also those that were not), and provided enough challenges and considerations for organizations and countries to deliberate forthcoming change. A new agenda topic is that of loss and damage which unified countries in agreement about establishing a fund for assisting and supporting developing countries. In this article, we briefly elaborate on some of the main topics discussed, highlight takeaways of the event that are worth considering as part of an organization’s sustainability agenda, and specifically, consider how these challenges can be addressed through the activation of material ESG topics. The downloadable checklist for materiality activation is a helpful tool to support your organization in starting the process.
State of ESG 2023: Increasing Your Sustainability Program's Effectiveness
On 13 December, Finch & Beak organized an ESG Acceleration Webinar to discuss the key takeaways of the State of ESG 2023 Report. During the session, ESG experts Nikkie Vinke and Josephin Schulz explained the four main challenges of the State of ESG 2023 and how to deal with them: the ESG reporting trap, engaging the board, leveraging TCFD, and the increased scope of company boundaries. This article summarizes the webinar highlights and includes a download with four tips for ESG acceleration in 2023.
Exchanging, Learning and Networking on ESG Ratings & Rankings
In order to facilitate peer networking, grow competence on ESG ratings and accelerate your ESG scores, SLR Consulting is launching its ESG Ratings Expert Network: a virtual, global platform for ESG professionals. The network is open for senior managers actively working on their company’s ESG performance, with roles in for example sustainability/ESG, investor relations, finance, or corporate affairs/communication within stock-market listed companies or large family businesses.
Understanding & Preparing for the CSRD
On 28 November 2022, the European Council approved the proposed Corporate Sustainability Reporting Directive (CSRD), which aims to revolutionize sustainable reporting and parallel it with financial reporting. The Directive replaces the existing Non-Financial Reporting Directive (NFRD) and will substantially increase reporting requirements for companies falling within its scope. This article addresses uncertainties about scope, timelines, and implications for business by providing clarification about the CSRD’s requirements as well as giving practical recommendations to prepare for compliance in 2023 and beyond.
New ESRS Framework: The Impact on Sustainability Reporting in Europe
Earlier this year, the European Financial Reporting Advisory Group (EFRAG) published the exposure drafts for the new European Sustainability Reporting Standards (ESRS). The development of this framework was requested by the European Commission in response to the need to have a single European-wide framework aligned with the requirements of the new CSRD directive. The draft version of the framework, which was under public consultation by various stakeholders until the 8th of August 2022, highlights which new non-financial reporting features the European Commission wants to advocate for. Most notably, that of double materiality to determine which sustainability priorities are set to become mandatory, and the reporting sustainability indicators that will have to include the entire value chain and be considered from a short-, medium-, and long-term perspective.
Double Materiality: 3 Tips for a Practical Approach
Regulators and investors are increasingly expecting organizations to conduct their materiality assessments following the principle of double materiality. However, understanding exactly what double materiality entails, and conducting this assessment in a successful manner comes with its challenges. This article outlines the concept of double materiality in brief and provides three tips for a successful double materiality assessment with practical guidance as part of a downloadable checklist.
Double Materiality Built around the New Solvency II Directive
As European companies are facing and understanding the strong connection between sustainability risks and financial and operational risks, sustainability risks are increasingly becoming more important within the Enterprise Risk Management of these companies. The insurance sector, with the concept of risk ingrained into its nature, is going through a period of transition towards integrating sustainability risks into investment strategies and underwriting activities. This article elaborates on the recently updated Solvency II Directive and discusses practical implications for European insurance companies.
How to Strengthen ESG Reporting with the Updated GRI Standards
In the corporate world, sustainability reporting requirements are continuously increasing through national and international directives. In the EU, the upcoming Corporate Sustainability Reporting Directive (CSRD) will impact the reporting guidelines of a large number of European companies. Beyond legal requirements, the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SASB) have been identified as the most comprehensive and internationally recognized sustainability standards setters for corporate reporting. At the end of 2020, GRI counted more than 38,000 GRI reports from organizations, including 73% of the world's 250 largest companies.
Leveraging Double Materiality to Identify Emerging ESG Risks
If there is one thing that the COVID-19 pandemic has demonstrated, it is that society can face major challenges, virtually overnight. Companies need to have a sharp view on both short-term impacts and risks further on the horizon in order to steer their business and build resilience to deal with change. Capturing emerging risks in the ESG approach is therefore essential. Additionally, as of 2023, the EU Commission requires companies to apply the concept of “Double Materiality” as part of its new Corporate Sustainability Reporting Directive (CSRD). One of the main questions that therefore arises is: how do you ensure your materiality assessment covers these new perspectives on materiality?
