What is Corporate Sustainability Reporting Directive (CSRD)

3 minutes of reading
Enectiva team

The corporate sustainability reporting directive (CSRD) is a directive entered in January 5,2023 by the European Union (EU) aimed at standardizing and enhancing sustainability reporting by companies. The goal of the directive is to provide more detailed, comparable and reliable information on companies ESG (Environmental, Social and Governance) performance.

Key aspects of CSRD:

  • Expanded Scope: The directive applies to both EU and Non-EU large corporations and listed SMEs if they generate over EUR 150 million on the EU market..
  • Detailed reporting: Companies are now required to report on a wider range of sustainability related topics such as climate change, biodiversity and social factors.
  • Standardized reporting requirement: CSRD introduced mandatory reporting standards to ensure consistency
  • Audit Requirements: There are mandatory audit requirements for sustainability information to enhance its reliability
  • Digital Reporting: Companies are required to publish their sustainability information in a digital format to facilitate accessibility and analysis

Typical Structure of CSRD report:

The CSRD report, or sustainability statement, is organized into four main sections:

General Information Overview: This section provides foundational context and background on your company’s operations.

  • ESRS 1: General Principals
  • ESRS 2: General Disclosures

Environmental Matters: Here, you outline your company’s environmental impact and the strategies you implement to mitigate this impact.

  • ESRS E1: Climate Change
  • ESRS E2: Pollution
  • ESRS E3: Water & Marine Resources
  • ESRS E4: Biodiversity & Ecosystems
  • ESRS E5: Resource Use & Circular Economy

Social Matters: This part highlights your company’s influence on its workforce, supply chain, communities, and consumers.

  • ESRS S1: Own Workforce
  • ESRS S2: Workers in the Value Chain
  • ESRS S3: Affected Communities
  • ESRS S4: Consumers & End-Users

Governance Matters: This section details the organizational structures and policies that guide your company’s governance practices.

  • ESRS G1: Business Conduct

The first companies will have to apply the new rules for the first time in the 2024 financial year, for reports published in 2025. Enectiva’s energy and carbon footprint monitoring solutions can significantly support companies in meeting CSRD requirements.

How Enectiva can help:

Enectiva’s energy monitoring solutions are vital for companies meeting CSRD requirements starting in the 2024 financial year. By providing advanced tools for real-time tracking and analysis of energy consumption and emissions, Enectiva ensures accurate reporting of environmental impact. Key features include:

  • Real-Time Monitoring: Continuous tracking of energy use and emissions for precise reporting.
  • Detailed Reporting: Comprehensive reports aligned with CSRD standards.
  • Efficiency Insights: Identification and recommendations for energy improvements.
  • Compliance Support: Simplifies adherence to CSRD requirements.
  • Goal Setting: Assists in setting and tracking energy efficiency and carbon reduction targets.
  • Enhanced Transparency: Facilitates clear communication of sustainability performance.

These capabilities help companies effectively address the Environmental Matters section of their CSRD report, streamline compliance, and demonstrate strong environmental stewardship.

In conclusion, Enectiva is an invaluable choice for companies looking to comply with the CSRD, providing the necessary tools and insights for thorough and accurate sustainability reporting. By leveraging Enectiva’s solutions, companies can not only meet regulatory requirements but also improve their overall sustainability performance.

For further details, contact sales@enectiva.com.