Our recent survey exposes a concerning trend among ESG leaders and compliance managers. Despite the enforcement of the European Union’s Corporate Sustainability Reporting Directive (CSRD) in January 2023, a staggering 77% of respondents have yet to commence preparations for CSRD reporting. The survey, which engaged 175 ESG leaders and compliance managers, underscores the urgent need for action in the face of evolving compliance requirements.
The CSRD is new EU legislation requiring all large and listed companies, even some outside of the EU, to publish regular reports on the social and environmental risks they face and how their activities impact people and the environment. It aims to help investors, consumers, policymakers, and other stakeholders evaluate non-financial performance and encourage a more responsible approach to business.
Of those surveyed, 50% acknowledged that their organisations are likely to fall under the purview of CSRD, highlighting the need for prompt compliance. However, only 23% have taken the initiative to commence preparations for CSRD reporting, while less than a third (29%) plan to embark on this journey within the next six months.
Supply chain information emerges as the top concern, with 48% of respondents identifying it as the most significant challenge to CSRD compliance. This is followed by awareness and understanding (28%), and regulatory adherence (10%). Despite these challenges, an overwhelming 89% of ESG leaders and compliance managers recognise the value of implementing sustainability reporting within their organisations.
“The inaugural CSRD reports are slated for submission in 2025. Organisations that prioritise preparation over procrastination are better positioned to enact policies and procedures that ensure seamless compliance,” asserted Nick Henderson-Mayo, Director of Learning and Content at VinciWorks. “Despite Brexit, CSRD will have a big impact on British business, particularly those trying to trade with the EU, or who are part of international supply chains. By training employees on sustainability and ESG principles, awareness can be cultivated, fostering active support for the organisation’s sustainable objectives.”
To facilitate ESG leaders and compliance managers’ comprehension of CSRD, we are offering a complimentary EU CSRD guide and have launched a comprehensive suite of Sustainability training courses, available for free trial.
In a recent study carried out by VinciWorks, a global compliance eLearning provider, 175 ESG leaders and compliance managers were surveyed on CSRD reporting.
Source link: https://vinciworks.com/blog/esg-leaders-unpreparedness-for-csrd-reporting/ by VinciWorks at vinciworks.com