The NFRD can no longer satisfy the goals and ambitions of the European Commission on sustainability reporting. The adoption of the Corporate Sustainability Reporting Directive (CSRD) will gradually replace the NFRD, aiming to raise the bar for corporate accountability and transparency in Europe. The first set of standards will be adopted by October 2022 and will cover all relevant Environmental, Social and Governance (ESG) elements. The requirements are also increasing as the new directive presents a fundamental shift in the importance of solid and mandatory ESG related metrics to approximately 50.000 companies in the European Union.
The CSRD closely aligns with the approach and scope of the GRI, this is why the European Financial Reporting Advisory Group has signed a cooperation agreement. This is the first agreement that the EFRAG project task force has signed, promoting convergence between European and global sustainability reporting standards.
Key areas prioritized by both the CSRD and the new GRI Universal Standards for 2022 are:
Double Materiality – The identification of financially materiality issues is incomplete if companies do not first assess their impacts on sustainable development. The CSRD makes it clear that this principle is of high importance.
More detailed reporting requirements – Companies should be in line with the forthcoming EU sustainability standards. Short, medium and long-term time horizons are required to be covered.
SMEs – Simplified approaches and guidance will be provided for SMEs. This is one of the biggest groups affected by the directive, especially for listed SMEs that are now bounded by mandatory reporting.
Limited assurance of sustainability information– Limited third-party assurance on the reported information will become mandatory.
The GRI recently announced the introduction of sector standards, which will help companies identify material topics. The first sector Standard that has been published is Oil and Gas. Thirty nine other sector-specific standards will follow, with coal, mining and agriculture industries expected to be next.
Companies need to re-learn how to navigate the Standards as the updates are structural. As a GRI Global Partner, CSE will hold the GRI Certified Standards Training Course- Reporting with the NEW GRI Universal Standards on February 16-17 & 18, aiming to give you a crystal-clear approach of how to effectively manage a Sustainability ESG report in accordance with the NEW GRI Universal Standards.
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The Center for Sustainability and Excellence (CSE) is a trusted training provider for Fortune 500 companies, local Governments and Universities including Walmart Canada, Supervalu, Unilever, ABM, Lockheed Martin, Baker Hughes, Noble Energy, United Airlines, Coca Cola, LBG, BP, Stanford University, Heineken Group, The World Bank.
CSE has been approved by CMI (Chartered Management Institute), CPD and GRI, in offering certified trainings for CSOs, CSR Managers, Communication Directors, HSE Managers and other executives. CSE is also Green America certified business. CSE is also PRI signatory, supporting its mission to provide leadership and expertise in responsible investment consulting and help understand the investment implications of ESG factors. CSE helps professionals advance their careers through our certified live digital (GRI and Certified Sustainability ESG Practitioner Program), online (www.Sustainability-Academy.org) and group training services globally and supports companies and organizations grow and excel through Sustainability ESG consulting and coaching.