CSRD compliance

What is CSRD?

The Corporate Sustainability Reporting Directive (CSRD), which came into force on January 5, 2023, is a legal framework established by the European Union. It aims to enhance the disclosure of ESG data by companies. The CSRD represents a pivotal moment in the world of corporate reporting. Its inception is rooted in the European Union’s commitment to advancing sustainable practices, fostering transparency, and addressing the urgent challenges posed by climate change, social inequality, and environmental degradation.

How do I comply with CSRD?

Ensuring compliance with CSRD requires a thorough understanding of its requirements and implementation guidelines. Here's how companies can navigate the compliance process effectively:
‍

Scope Evaluation: Determine whether your company falls within the scope of the CSRD based on criteria such as size, incorporation status, and market listing.
Data Collection and Management: Establish robust systems for collecting, managing, and verifying ESG data to ensure accuracy and relevance.
Reporting Alignment: Align reporting practices with CSRD guidelines, including disclosure of environmental impact, social responsibility, and governance practices.
Double Materiality Assessment: Conduct a comprehensive assessment of both financial and sustainability materiality to identify and disclose material ESG risks and opportunities.
Adopt ESRS: Implement European Sustainability Reporting Standards (ESRS) for consistent and transparent communication of ESG performance.
Engage with Stakeholders: Foster dialogue with stakeholders to understand their expectations and concerns, promoting transparency and accountability.
Assurance Engagement: Obtain external assurance on sustainability information to enhance credibility and trust in reported data.
Digital Reporting: Embrace digital reporting tools and standardized digital taxonomy to facilitate compliance with CSRD requirements.

When will CSRD apply to me?

Understanding when the CSRD applies to your company is essential for timely compliance. Here's a breakdown of key timelines:

Existing Entities Under NFRD: If your company has already been reporting under the Non-Financial Reporting Directive (NFRD), you must now realign with the CSRD for your 2024 data and publish your first CSRD-compliant reports in 2025.
New Entrants: Large companies not previously subject to the NFRD, including non-EU companies listed on EU-regulated markets, fall under the CSRD in 2025. You will report your 2025 data in your CSRD reports in 2026.
‍SMEs: As of 2026, the CSRD will apply to small and medium-sized enterprises (SMEs) meeting specific criteria, such as being listed on regulated European markets and meeting certain financial thresholds.

CSRD Timeline

2023

CSRD enters into force. First set of ESRS published.

2024

Companies reporting under the NFRD transition to reporting under CSRD.

2025

All large European companies must report for fiscal year 2024.

2026

SMEs listed on regulated markets report for fiscal year 2025.

2028

Large non-European companies report for fiscal year 2027.

BeCause helps you become CSRD compliant

At BeCause, we understand the challenges companies face in meeting their CSRD obligations. That's why we've developed a digital solution tailored specifically for this.

Digitized ESRS Framework: Our platform offers a digitized version of the European Sustainability Reporting Standards (ESRS), ensuring that organizations can efficiently collect and create audit-ready reports on their sustainability data. This simplifies the process of aligning with CSRD requirements, saving time and resources.
Reuse of Existing Data: BeCause allows organizations to apply any previously collected data through our platform and automatically map it to ESRS. This means that organizations don't have to start from scratch; they can leverage the sustainability data they already have, minimizing redundancy and streamlining compliance efforts.
Elimination of Double-Accounting Errors: By centralizing sustainability data management, BeCause reduces the need of double-accounting and risks associated with that. Our platform encourages transparency and accuracy, ensuring that organizations can confidently report their sustainability performance without worrying about compliance pitfalls.
Addressing Double Materiality: Our upcoming feature will address the complex issue of double materiality, providing organizations with a digitized framework to determine and report on the material matters related to their sustainability impacts, risks, and opportunities. This feature will further enhance CSRD compliance efforts by simplifying the reporting process.
Modernized Data Management: BeCause offers a modern approach to sustainability data management, acting as a centralized hub through which all information seamlessly flows. This not only facilitates CSRD compliance but also enables organizations to pursue other sustainability initiatives and certifications with ease.

With BeCause, organizations can confidently navigate the CSRD landscape, ensuring compliance while maximizing the value of their sustainability efforts. Join us in embracing the future of sustainable hospitality.

Ensure your CSRD compliance with BeCause