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Planning for the CSRD

The Corporate Sustainability Reporting Directive (CSRD) was published on December 16, 2022 and will gradually replace the Statement of Non-Financial Performance (SNFP) from January 1, 2024. The Directive will require many companies to publish a sustainability report which includes both financial and Environmental, Social and Governance (ESG) indicators.

Which companies are concerned by the CSRD?

All European companies, both listed and unlisted, which meet two of the following three criteria:

250

or more employees

€40m

or more in revenue

€20m

or more on the statement of financial position

And also:

small and medium-sized companies (SMEs) listed on the stock exchange (excluding micro-businesses with fewer than 10 employees);
non-European companies with annual revenue of more than €150 million in the EU market.

The CSRD therefore concerns approximately 50,000 economic players, 39,000 more than the European Non-Financial Reporting Directive (NFRD), which in France was transformed into the Statement of Non-Financial Performance (SNFP).

New requirements related to the CSRD

Labrador's teams are ready to help you implement these new CSRD requirements, regardless of your current situation or the maturity of your business.

The CSRD will have a considerable impact on:

the role of management teams in defining, implementing and steering CSR strategy;
the type and level of information to be provided to stakeholders, particularly investors and analysts, on your sustainable development strategy and performance;
information structure, relevance and quality.

Increased transparency with the CSRD

The CSRD states that companies must produce reliable, comparable and verifiable information.

The sustainability report must present information which has a significant influence on stakeholder decisions (investors, shareholders, analysts, NGOs and more), based on the dual materiality principle. This principle requires companies to report both on the impact of their activities on sustainable development issues ("outside-in"), and the impact of their activities on society and the environment ("inside-out").

This information must be a faithful reflection of reality, based on complete, neutral and accurate data.

It must be consistent over time and, as far as possible, be presented in a way that enables comparison with other companies. Therefore, common and standardized criteria, approaches and methodologies should be used.

Finally, the information must be public, accessible and digitally trackable.

Supporting you with your CSRD transition

Labrador's teams can help you with your transition to CSRD to produce and present information that your stakeholders can trust, by:

providing training to help your teams get up to speed with the latest CSRD developments;
carrying out an in-depth gap analysis (SNFP to CSRD) to anticipate which actions need to be implemented;
creating a materiality analysis to map your main sustainable development challenges;
structuring and drafting your non-financial performance reports, including your sustainability report.