Ian C Jones
Berkshire UK • 07469018888 ian@newgatetrading.co.uk • LinkedIn
The Corporate Sustainability Reporting Directive, CSRD, is set to take effect from January 1, 2024, and aims to streamline companies’ sustainability performance reporting. It builds upon the foundations laid by the EU’s Non-Financial Reporting Directive (NFRD). Initially applicable to certain businesses, its reach will extend to include larger companies from January 1, 2025, impacting those with over 250 employees and specific financial thresholds. Similar requirements are expected to be adopted in the UK in the future.
One reason businesses fail to make a start on carbon reporting is the cost. PCI and its partner Newgate Trading have developed a unique mechanism that allows businesses to generate carbon reports and become carbon literate without impacting their cash flow. They may simply pay with their goods, services, or surplus inventory.
If this is of interest. then contact us to find out more. Here
Failure to Anticipate: A Looming Challenge
Insights from VinciWorks' Survey: Despite the impending mandate, VinciWorks' survey reveals that a staggering 77% of businesses are unprepared. Concerns about friction in the supply chain and data collection on emissions emerge as significant obstacles. With only 29% planning to prepare within the next six months, time is of the essence for businesses to gear up for the new reporting mandate.
Readying for Reporting in the UK: A Step-by-Step Guide
1. Plan and Establish Your Double Materiality Assessment
The CSRD introduces a double materiality approach, requiring businesses to disclose their impact on both people and the environment. A thorough assessment is crucial.
2. Familiarise Yourself with EU Sustainability Reporting Standards (ESRS)
Businesses under the CSRD must align with ESRS, ensuring consistency in reporting ESG information. This facilitates comparisons with other companies, promoting transparency.
3. Collect and Monitor Data
Mandated reporting on ESG information necessitates the collection and provision of data across scope 1, 2, and 3. Stakeholder involvement is key to comprehensive data monitoring.
4. Integrate Reporting
Management reporting must be reliable and transparent. Adhering to guidelines and frameworks, along with third-party support, ensures compliance with the new reporting mandate.
5. Begin Voluntary Reporting
Voluntary reporting establishes sustainability as a cultural pillar within a company, preparing affected businesses for 2024 and facilitating seamless transitions for others when new legislation impacts them.
If this is of interest. then contact us to find out more. Here
Benefits of Robust Preparations: Why Positive Carbon Impact Matters
PCI stands ready to guide businesses through these crucial steps, offering a host of benefits resulting from meticulous preparations.
Regulatory Compliance: Stay Ahead of Changes
Being proactive positions businesses to seamlessly transition to new legislation, staying ahead of regulatory changes.
Improved Transparency: Enhance Brand Image and Trust
Commitment to an ESG strategy and transparent reporting enhances brand image and builds trust among stakeholders.
Competitive Advantage: Set Yourself Apart
Early adoption of carbon reporting standards sets businesses apart from competitors, increasing industry competitiveness.
Investment Attractiveness: Create Opportunities
Anticipating enforced carbon reporting can attract additional capital sources, enhancing investment attractiveness.
Conclusion: A Sustainable Tomorrow
In the face of evolving legislation, businesses must recognize the urgency of preparing for sustainability reporting.
Positive Carbon Impact, in collaboration with Newgate Trading Europe Ltd, offers a distinctive path forward. By taking actionable steps and embracing sustainable practices, businesses not only comply with regulations but also contribute to a greener, more sustainable future.
If this is of interest. then contact us to find out more. Here
FAQs
How does PCI collaborate with Newgate Trading Europe Ltd? www.newgatetrading.co.uk
PCI collaborates to create a unique facility where businesses can pay for carbon reporting and training with their products or services, saving cash. If this is of interest. then contact us to find out more. Here
Why is the double materiality assessment crucial?
It ensures businesses disclose both their impact on people and the environment, providing a comprehensive sustainability overview.
What role does voluntary reporting play in preparation?
Voluntary reporting establishes sustainability as a cultural pillar, preparing businesses for upcoming mandates and facilitating smooth transitions.
How can businesses benefit from early adoption of carbon reporting standards?
Early adoption sets businesses apart, improving regulatory compliance, transparency, competitiveness, and investment attractiveness.
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