The European Union’s Corporate Sustainability Reporting Directive (CSRD) is transforming environmental, social and governance (ESG) reporting. Close to 50,000 companies will be subject to mandatory sustainability reporting from 2024, including non-EU companies which have subsidiaries operating within the EU or are listed on EU-regulated markets.
With the first CSRD reports due in 2025, for companies with calendar year ending 31 December 2024, the clock is ticking.
Companies should be prepared to provide accurate information from different parts of the organisation to support the new assurance requirements. In this paper, we discuss the potential impacts of the CSRD on your company and share concrete steps towards CSRD-readiness.
The evolution of ESG reporting
Over the past two decades, ESG reporting has increased in transparency and importance with greater integration of ESG-related information into mainstream financial reporting.
In KPMG’s 2022 Global CEO Outlook, 69% of CEOs surveyed see significant stakeholder demand for increased transparency and reporting on ESG matters (up from 58% in 2021). And 72% feel that stakeholder scrutiny regarding ESG issues, such as climate change and gender equality, will continue to accelerate. Despite such growing demands and pressure, more than one-third believe their organisations struggle to narrate a compelling ESG story.
The number of companies publishing a sustainability report has increased steadily over the past decade. KPMG’s 2022 Global Survey of Sustainability Reporting shows that 79% of the N100 group (leading 100 companies in every country surveyed) report on sustainability.
With the CSRD taking ESG reporting to a new level, every organisation that falls within scope must start putting together a plan to prepare for the first reporting year under the new standards.
What does the CSRD mean for companies?
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Sustainability is vital for all companies. With our tailored, modular project approach and extensive experience in providing advisory and assurance services in sustainability reporting, KPMG in Singapore can help you embed CSRD requirements in your organisation, while seizing ESG-related opportunities.
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