{"id":31494,"date":"2023-05-31T10:53:54","date_gmt":"2023-05-31T10:53:54","guid":{"rendered":"https:\/\/merlinsourcing.com\/?p=31494"},"modified":"2024-06-28T09:37:26","modified_gmt":"2024-06-28T09:37:26","slug":"the-eu-csrd-corporate-sustainability-reporting-directive","status":"publish","type":"post","link":"https:\/\/merlinsourcing.com\/de\/blog\/the-eu-csrd-corporate-sustainability-reporting-directive\/","title":{"rendered":"The EU Corporate Sustainability Reporting Directive (EU &#8211; CSRD)"},"content":{"rendered":"<div data-elementor-type=\"wp-post\" data-elementor-id=\"31494\" class=\"elementor elementor-31494\" data-elementor-settings=\"[]\">\n\t\t\t\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7bf2ecfd elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7bf2ecfd\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-widget-wrap elementor-element-populated elementor-element elementor-element-70f6faa2\" data-id=\"70f6faa2\" data-element_type=\"column\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-90d272e elementor-widget elementor-widget-text-editor\" data-id=\"90d272e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<p>Questions about what businesses and organizations can do to minimize negative effects on the environment, take affirmative action on human rights and sustainable development have already been raised in various global forums in light of the recent societal and environmental issues. To address them, governments around the world are introducing laws and regulations to hold companies accountable for their actions.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>According to a <a href=\"https:\/\/www.gartner.com\/en\/newsroom\/press-releases\/2022-11-14-gartner-survey-finds-87-percent-of-business-leaders-expect-to-increase-sustainability-investment-over-the-next-two-years\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span style=\"text-decoration: underline;\">Gartner survey<\/span><\/strong><\/a>, 87% of business leaders expect to increase their investment in sustainability over the next two years. The <a href=\"https:\/\/intracen.org\/media\/file\/2548\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span style=\"text-decoration: underline;\">International Trade Center (ITC)<\/span><\/strong><\/a> reports that sales of sustainable goods have increased by almost<strong> 85%<\/strong> during the past five years.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:image {\"id\":32376,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} --><\/p>\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"980\" height=\"400\" class=\"wp-image-32376\" src=\"https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/additional-banner-01.png\" alt=\"According to a Gartner survey, 87% of business leaders expect to increase their investment in sustainability over the next two years. The International Trade Center (ITC) reports that sales of sustainable goods have increased by almost 85% during the past five years.\" srcset=\"https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/additional-banner-01.png 980w, https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/additional-banner-01-300x122.png 300w, https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/additional-banner-01-768x313.png 768w, https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/additional-banner-01-16x7.png 16w\" sizes=\"(max-width: 980px) 100vw, 980px\" \/><\/figure>\n<p><!-- \/wp:image --><!-- wp:paragraph --><\/p>\n<p>Similar to how Germany introduced the <strong><span style=\"text-decoration: underline;\"><a href=\"https:\/\/merlinsourcing.com\/de\/blog\/german-supply-chain-act-lieferkettensorgfaltspflichtengesetz-what-it-means-to-scm-procurement-professionals\/\" target=\"_blank\" rel=\"noreferrer noopener\">Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz, LkSG)<\/a><\/span><\/strong>, the European Commission (EC) recently approved the new CSRD (Corporate Sustainability Reporting Directive), which will motivate\u00a0businesses in the EU to work toward their sustainable goals by publishing regular reports on their sustainability activities.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>Sustainable procurement and enabling sustainability across their supply chains thus become inevitable for businesses. According to <a href=\"https:\/\/resources.ecovadis.com\/sp-barometer\/sustainable-procurement-barometer-2024\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span style=\"text-decoration: underline;\">EcoVadis&#8217; Sustainable Procurement Barometer<\/span><\/strong><\/a>, 61% of procurement executives believe that social challenges will have a strong influence on procurement strategies going forward.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:image {\"id\":32378,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} --><\/p>\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"980\" height=\"400\" class=\"wp-image-32378\" src=\"https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/additional-banner-02.png\" alt=\"According to EcoVadis' Sustainable Procurement Barometer, 61% of procurement executives believe that social challenges will have a strong influence on procurement strategies going forward\" srcset=\"https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/additional-banner-02.png 980w, https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/additional-banner-02-300x122.png 300w, https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/additional-banner-02-768x313.png 768w, https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/additional-banner-02-16x7.png 16w\" sizes=\"(max-width: 980px) 100vw, 980px\" \/><\/figure>\n<p><!-- \/wp:image --><!-- wp:paragraph --><\/p>\n<p>In this blog post, we&#8217;ll explore:<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:list {\"ordered\":true} --><\/p>\n<ol><!-- wp:list-item -->\n<li>What is the EU Corporate Sustainability Reporting Directive (CSRD)?<\/li>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<li>Which companies are affected?<\/li>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<li>What does it mean for your organization?<\/li>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<li>The role of sustainable procurement in achieving EU-CSRD compliance.<\/li>\n<!-- \/wp:list-item --><!-- wp:list-item -->\n<li>How can businesses use technology to successfully address the challenges\u00a0of sustainability reporting?<\/li>\n<\/ol>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d1b9d79 elementor-aspect-ratio-169 elementor-widget elementor-widget-video\" data-id=\"d1b9d79\" data-element_type=\"widget\" data-settings=\"{&quot;youtube_url&quot;:&quot;https:\\\/\\\/www.youtube.com\\\/watch?v=apbvY9rfZMA&quot;,&quot;video_type&quot;:&quot;youtube&quot;,&quot;controls&quot;:&quot;yes&quot;,&quot;aspect_ratio&quot;:&quot;169&quot;}\" data-widget_type=\"video.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-wrapper elementor-fit-aspect-ratio elementor-open-inline\">\n\t\t\t<div class=\"elementor-video\"><\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-634ad64 blog-content elementor-widget elementor-widget-text-editor\" data-id=\"634ad64\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_61 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" >Inhaltsverzeichnis<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/merlinsourcing.com\/de\/blog\/the-eu-csrd-corporate-sustainability-reporting-directive\/#What_is_Corporate_Sustainability_Reporting_Directive_CSRD\" title=\"What is Corporate Sustainability Reporting Directive (CSRD)?\">What is Corporate Sustainability Reporting Directive (CSRD)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/merlinsourcing.com\/de\/blog\/the-eu-csrd-corporate-sustainability-reporting-directive\/#Which_companies_are_affected\" title=\"Which companies are affected?\">Which companies are affected?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/merlinsourcing.com\/de\/blog\/the-eu-csrd-corporate-sustainability-reporting-directive\/#What_does_it_mean_for_your_organization\" title=\"What does it mean for your organization?\">What does it mean for your organization?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/merlinsourcing.com\/de\/blog\/the-eu-csrd-corporate-sustainability-reporting-directive\/#The_role_of_sustainable_procurement_in_achieving_EU-CSRD_compliance\" title=\"The role of sustainable procurement in achieving EU-CSRD compliance\">The role of sustainable procurement in achieving EU-CSRD compliance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/merlinsourcing.com\/de\/blog\/the-eu-csrd-corporate-sustainability-reporting-directive\/#How_can_businesses_use_technology_to_successfully_address_the_challenges_of_sustainability_reporting\" title=\"How can businesses use technology to successfully address the challenges\u00a0of sustainability reporting?\">How can businesses use technology to successfully address the challenges\u00a0of sustainability reporting?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/merlinsourcing.com\/de\/blog\/the-eu-csrd-corporate-sustainability-reporting-directive\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_Corporate_Sustainability_Reporting_Directive_CSRD\"><\/span><strong style=\"color: inherit; font-family: inherit; font-size: 30px; letter-spacing: -0.0415625em; text-align: inherit;\"><em>What is Corporate Sustainability Reporting Directive (CSRD)?<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p>To assist investors, customers, political leaders, and other stakeholders in evaluating a company&#8217;s non-financial performance, the European Parliament enacted the Corporate Sustainability Reporting Directive (CSRD) on November 10, 2022. \u00a0The standards governing the social and environmental data that businesses are required to provide have been updated and strengthened by this new directive. The EU has announced that the CSRD would be implemented in three stages:<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:list {\"ordered\":true} --><\/p>\n<ol>\n<li style=\"list-style-type: none;\">\n<ol><!-- wp:list-item --><\/ol>\n<\/li>\n<\/ol>\n<p>\u00a0<\/p>\n<ol>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>From 1<sup>st<\/sup> January 2024 for enterprises currently subject to the non-financial reporting directive (reporting in 2025 for the financial year 2024).<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<p><!-- \/wp:list-item --><!-- wp:list-item --><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>From 1<sup>st<\/sup> \u00a0January 2025 for large enterprises that are not currently subject to the non-financial reporting directive (reporting in 2026 for the financial year 2025).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><!-- \/wp:list-item --><!-- wp:list-item --><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>For listed SMEs, small, non-complex credit institutions, and captive insurance enterprises from 1<sup>st<\/sup> \u00a0January 2026 (reporting in 2027 for the financial year 2026).<!-- wp:list --><!-- \/wp:list --><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><!-- \/wp:list-item --><\/p>\n<p><!-- \/wp:list --><!-- wp:image {\"id\":32380,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} --><\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"536\" class=\"wp-image-32380\" src=\"https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/infographic-01-1024x536.png\" alt=\"According to the EU, The CSRD will be implemented in three phases.\" srcset=\"https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/infographic-01-1024x536.png 1024w, https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/infographic-01-300x157.png 300w, https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/infographic-01-768x402.png 768w, https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/infographic-01-16x8.png 16w, https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/infographic-01.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<p><!-- \/wp:image --><!-- wp:paragraph --><\/p>\n<p>The new regulation will guarantee that stakeholders and investors have access to the data they need, to evaluate the investment risks associated with climate change and other sustainability-related concerns. Additionally, it will foster a culture of openness on how businesses affect both the environment and people. Finally, standardizing the required information will help businesses in minimizing reporting expenses over the long term. For example, <a href=\"https:\/\/www2.deloitte.com\/content\/dam\/Deloitte\/ie\/Documents\/sustainability\/Corporate-Sustainability-Reporting-Directive.pdf\" target=\"_blank\" rel=\"noreferrer noopener\" data-lf-fd-inspected-yn8j1xymlyaxw0rk=\"true\" data-factors-click-bind=\"true\"><strong><span style=\"text-decoration: underline;\">CSRD<\/span><\/strong><\/a> can simplify the process for asset managers and investment companies to obtain ESG company data to ensure their compliance with reporting requirements under the <a href=\"https:\/\/eur-lex.europa.eu\/legal-content\/EN\/TXT\/?uri=celex%3A32020R0852\" target=\"_blank\" rel=\"noreferrer noopener\" data-factors-click-bind=\"true\"><strong><span style=\"text-decoration: underline;\">EU Taxonomy<\/span><\/strong><\/a> and <a href=\"https:\/\/eur-lex.europa.eu\/legal-content\/EN\/TXT\/?uri=celex%3A32019R2088\" target=\"_blank\" rel=\"noreferrer noopener\" data-factors-click-bind=\"true\"><strong><span style=\"text-decoration: underline;\">SFDR<\/span><\/strong><\/a> (Sustainable Finance Disclosure Regulation).<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:heading --><\/p>\n<h2 id=\"h-which-companies-are-affected\"><span class=\"ez-toc-section\" id=\"Which_companies_are_affected\"><\/span><strong><em>Which companies are affected?<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p>All companies that meet at least two of these three criteria are subject to\u00a0the CSR directive:<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:list {\"ordered\":true} --><\/p>\n<ol>\n<li style=\"list-style-type: none;\">\n<ol><!-- wp:list-item --><\/ol>\n<\/li>\n<\/ol>\n<ol>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>The company&#8217;s total assets are\u00a0\u20ac20 million or more,<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<p><!-- \/wp:list-item --><!-- wp:list-item --><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>The company&#8217;s net sales are \u20ac40 million or more,<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><!-- \/wp:list-item --><!-- wp:list-item --><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>The company employs at least 250 people or more.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><!-- \/wp:list-item --><\/p>\n<p><!-- \/wp:list --><!-- wp:paragraph --><\/p>\n<p>All listed companies are subject to the requirement as well. Only\u00a0microenterprises that fall under the criteria of having net sales of no more than \u20ac700,000, a financial statement\u00a0of\u00a0\u20ac350,000, and\u00a0don&#8217;t have\u00a0more\u00a0than 10 employees on average per year are exempted from this law.\u00a0\u00a0To be considered a microenterprise, at least two of these three requirements must be satisfied.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:heading --><\/p>\n<h2 id=\"h-what-does-it-mean-for-your-organization\"><span class=\"ez-toc-section\" id=\"What_does_it_mean_for_your_organization\"><\/span><strong><em>What does it mean for your organization?<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p>With CSRD being the new directive that establishes the framework for reporting, the organizations subject to it will be obliged to adhere to the European Sustainability Reporting Standards (ESRS) in terms of the disclosures required.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>If your organization is affected by CSR Directives, you should be aware of the following five action points:<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:image {\"id\":32383,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} --><\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"536\" class=\"wp-image-32383\" src=\"https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/infographic-02-1024x536.png\" alt=\"Five action items if your firm is affected by CSR Directives \" srcset=\"https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/infographic-02-1024x536.png 1024w, https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/infographic-02-300x157.png 300w, https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/infographic-02-768x402.png 768w, https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/infographic-02-16x8.png 16w, https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/infographic-02.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<p><!-- \/wp:image --><!-- wp:heading {\"level\":3} --><\/p>\n<h3 id=\"h-1-double-materiality-reporting\">1. <em>Double materiality reporting<\/em><\/h3>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p>\u2018Double materiality\u2019 refers to the dual reporting obligations requirement from the companies in which they have to report on their influence on traditional materialities, such as the impact of their operations on sustainability issues as well as the need to disclose the risks they face from factors such as climate change or lack of resources, etc.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:heading {\"level\":3} --><\/p>\n<h3 id=\"h-2-establishing-long-term-esg-goals-and-guidelines\">2. <em>Establishing long-term ESG goals and guidelines<\/em><\/h3>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p>Companies are required to establish specific ESG goals and report on their development each year under the CSRD. As a result, the emphasis on sustainability is now required and must be incorporated into the company&#8217;s long-term vision and strategy as well as its internal policies.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:heading {\"level\":3} --><\/p>\n<h3 id=\"h-3-due-diligence-for-internal-operations-and-the-supply-chain\">3. <em>Due diligence for internal operations and the supply chain<\/em><\/h3>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p>Businesses are required to account for and audit the effects of their internal operations and production methods. This also holds for how their supply chain partners&#8217; actions affect them. Companies can thus no longer cover up any unethical behavior or environmental damage.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:heading {\"level\":3} --><\/p>\n<h3 id=\"h-4-transparency-regarding-the-assignment-of-tasks-and-duties\">4. <em>Transparency regarding the assignment of tasks and duties<\/em><\/h3>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p>According to the new EU-CSR directive\u00a0organizations must specify who is in charge of setting ESG goals and tracking their achievement, as well as which divisions within the business are in charge of each. Companies need to determine which other partners are also accountable for implementing ESG initiatives.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:heading {\"level\":3} --><\/p>\n<h3 id=\"h-5-compulsory-external-assurance-and-integrated-reporting\">5. <em>Compulsory external assurance and integrated reporting<\/em><\/h3>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p>The annual report must include the sustainable targets and performance related to the\u00a0targets in addition to ESG reporting that complies with the requirements endorsed by the European Commission. The data must then be audited by a third-party external auditor.\u00a0<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:heading --><\/p>\n<h2 id=\"h-the-role-of-sustainable-procurement-in-achieving-eu-csrd-compliance\"><span class=\"ez-toc-section\" id=\"The_role_of_sustainable_procurement_in_achieving_EU-CSRD_compliance\"><\/span><strong><em>The role of sustainable procurement in achieving EU-CSRD compliance<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p>As discussed above, the EU-CSRD regulations broaden the scope and raise the bar for sustainability requirements. This will necessitate significant changes by businesses to ensure the sustainability of their supply chains. As a result, coming to terms with them can\u00a0pose complicated challenges for businesses, especially for those with less evolved supply chain sustainability measures.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>However, by putting <a href=\"https:\/\/merlinsourcing.com\/de\/blog\/a-guide-to-sustainable-procurement-for-greener-safer-supply-chains\/\" target=\"_blank\" rel=\"noreferrer noopener\" data-factors-click-bind=\"true\"><strong><span style=\"text-decoration: underline;\">Sustainable Procurement<\/span><\/strong><\/a> practices into place, businesses can analyze CSR performance across their supplier ecosystem through effective supplier screening and management processes. It takes into account how the company\u2019s supplier sourcing strategy may affect the economy, society, and the environment in addition to their potential to affect the cost and quality of the materials sourced.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>This gets us to discuss the two strategies of sustainable procurement \u00a0for CSRD:<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:heading {\"level\":3} --><\/p>\n<h3 id=\"h-1-product-based-strategy\">1. <em>Product-based strategy<\/em><\/h3>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p>Using an organization&#8217;s supply chain to build a product or service while evaluating its own and its suppliers&#8217; environmental records is the focus of this method. For strategic and commercial objectives, this approach is used to comprehend the influence of a product or service. Additionally, this method offers a thorough record of the supplier&#8217;s process.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:heading {\"level\":3} --><\/p>\n<h3 id=\"h-2-supplier-based-strategy\"><em>2. Supplier-based strategy<\/em><\/h3>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p>In this strategy, the supplier&#8217;s CSR approach and policy are analyzed, evaluated, and checked for conformity with your CSR criteria. This is an intriguing method since you can evaluate the supplier&#8217;s effects on the environment and societal dangers. With this strategy, you can encourage other companies to adopt more sustainable practices and enhance the entire supply chain process, which can be perceived as having a beneficial influence.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:heading --><\/p>\n<h2 id=\"h-how-can-businesses-use-technology-to-successfully-address-the-challenges-of-sustainability-reporting\"><span class=\"ez-toc-section\" id=\"How_can_businesses_use_technology_to_successfully_address_the_challenges_of_sustainability_reporting\"><\/span><strong><em>How can businesses use technology to successfully address the challenges\u00a0of sustainability reporting?<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p>As this new directive necessitates the collection, cleansing, and categorization of massive amounts of data on sustainability, technologies such as\u00a0cloud-based strategic sourcing software, S2P suite or supplier management software (SXM or SRM) can play pivotal roles\u00a0in managing supplier data through supplier management automation.\u00a0 It collects and processes information about the suppliers while analyzing the associated risks. It also helps businesses to integrate sustainable practices\u00a0in the sourcing and supplier selection process and ensure that the organization has a more holistic view of sustainability risks before actually entering into a contract with the supplier.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:paragraph --><\/p>\n<p>Additionally, the best integrated strategic sourcing software comes with procurement analytics tools and reporting capabilities\u00a0that enable businesses to assess KPIs using simple dashboards and generate reports in various formats. This makes it easier\u00a0for businesses to report to both internal and external audiences on social compliance, human rights, and sustainability performances.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:heading --><\/p>\n<h2 id=\"h-conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong><em>Conclusion<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><!-- \/wp:heading --><!-- wp:paragraph --><\/p>\n<p>The journey\u00a0to\u00a0EU-CSRD reporting has just started. The EU aims to ensure that businesses not only adhere to directives\u00a0but also actively embrace environmental transformation by integrating global sustainability frameworks with\u00a0financial and non-financial performances. So,\u00a0it&#8217;s now or never to start getting ready for your CSRD requirements! Make an appointment with a <a href=\"https:\/\/merlinsourcing.com\/de\/contact-us\/\" target=\"_blank\" rel=\"noreferrer noopener\" data-factors-click-bind=\"true\"><strong><span style=\"text-decoration: underline;\">MeRLIN Sourcing<\/span><\/strong><\/a> expert to see how our solution can help you improve compliance with the law.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"<p>Leverage technology to ensure EU-CSRD compliance to conquer reporting and compliance challenges in sustainable procurement.<\/p>","protected":false},"author":14,"featured_media":32371,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[151,1],"tags":[152,148,147],"class_list":["post-31494","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-eu-csrd","category-merlin","tag-corporate-sustainability-reporting-directive","tag-csrd","tag-eu-csrd","entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.4 (Yoast SEO v21.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The EU Corporate Sustainability Reporting Directive (EU CSRD)<\/title>\n<meta name=\"description\" content=\"The EU has published the new Corporate Sustainability Reporting Directive (CSRD), which will motivate\u00a0businesses in the EU to work toward their sustainable goals by publishing regular reports on their sustainability activities\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/merlinsourcing.com\/de\/blog\/the-eu-csrd-corporate-sustainability-reporting-directive\/\" \/>\n<meta property=\"og:locale\" content=\"de_DE\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The EU Corporate Sustainability Reporting Directive (EU CSRD)\" \/>\n<meta property=\"og:description\" content=\"The EU has published the new Corporate Sustainability Reporting Directive (CSRD), which will motivate\u00a0businesses in the EU to work toward their sustainable goals by publishing regular reports on their sustainability activities\" \/>\n<meta property=\"og:url\" content=\"https:\/\/merlinsourcing.com\/de\/blog\/the-eu-csrd-corporate-sustainability-reporting-directive\/\" \/>\n<meta property=\"og:site_name\" content=\"MeRLIN\u202f\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/MeRLINstrategicsourcing\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-31T10:53:54+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-06-28T09:37:26+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/merlinsourcing.com\/wp-content\/uploads\/2023\/03\/main-banner-opt01.png\" \/>\n\t<meta property=\"og:image:width\" content=\"980\" \/>\n\t<meta property=\"og:image:height\" content=\"345\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Nishtha Rajpal\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@MeRLINsourcing\" \/>\n<meta name=\"twitter:site\" content=\"@MeRLINsourcing\" \/>\n<meta name=\"twitter:label1\" content=\"Verfasst von\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nishtha Rajpal\" \/>\n\t<meta name=\"twitter:label2\" content=\"Gesch\u00e4tzte Lesezeit\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/merlinsourcing.com\/de\/blog\/the-eu-csrd-corporate-sustainability-reporting-directive\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/merlinsourcing.com\/de\/blog\/the-eu-csrd-corporate-sustainability-reporting-directive\/\"},\"author\":{\"name\":\"Nishtha Rajpal\",\"@id\":\"https:\/\/merlinsourcing.com\/de\/#\/schema\/person\/dc633ca58836e2473314e2b3a6d5b133\"},\"headline\":\"The EU Corporate Sustainability Reporting Directive (EU &#8211; 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