ESG reporting and disclosure

Against the backdrop of ambitious decarbonisation targets set by the EU, coupled with the surge of social justice issues in the wake of the invasion of Ukraine, activities performed for public good are now a growing point of focus for financial market analysts. Investors have shifted their attention to sustainable companies, scrutinising how they incorporate ESG strategies into their corporate strategy and the ESG-related metrics that they report to the market.

Stemming from the Paris Agreement and the EU’s Sustainable Finance Action Plan, the Corporate Sustainability Reporting Directive (CSRD) (the “Directive”) is a timely response to growing investor perception that companies who report on Environmental, Social and Governance (ESG) risks are more likely to be better at both managing these risks and delivering greater long-term value. The directive will result in a four-fold increase in the scope of reporting entities across the EU, from 11,600 under the pre-existing Non-Financial Reporting Directive (NFRD) to in excess of 49,000 under the new regime.

However, the challenges faced when meeting the increased data requirements of the CSRD should not be underestimated, and in this paper, we will explore how best to position your organisation for successful NFR implementation.