Simon McKeever
CEO, Irish Exporters Association
Find out why companies should apply both the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD) together.
The two directives complement each other by providing the framework and guidance necessary for companies to transition to climate-neutral by 2050. This is crucial for the transport and logistics sector’s efforts to tackle climate change and support environmentally sustainable practices. Companies should apply both together.
So what do CSRD and CSDDD mean?
The CSRD mandates transparency in sustainability reporting within financial reports. The CSDDD requires companies to implement due diligence for environmental and social responsibility across their supply chain and report annually.
By measuring, quantifying and disclosing carbon emissions, companies can track their progress toward emission reduction goals and make informed decisions about sustainability strategies in their business. There are some exemptions and, of course, penalties for non-compliance.
How will this affect the sector, particularly SMEs?
CSRD will be rolled out initially in 2024 to large public-interest entities with more than 500 employees (and EU companies already reporting under the Non-Financial Reporting Directive). It will subsequently be rolled out to companies with more than 250 employees and a balance sheet of €25 million in 2025, and in 2026 to listed SMEs (with an opt-out to 2028).
By measuring, quantifying and disclosing carbon emissions, companies can track their progress toward emission reduction goals and make informed decisions about sustainability strategies in their business.
CSDDD will be rolled out in 2027 to companies with more than 5,000 employees and a turnover of €1.5 billion. In 2028, it will apply to companies with more than 3,000 employees and a €900 million turnover. In 2029, it will include companies with more than 1,000 employees and a €450 million turnover.
Nonetheless, it is crucial for SMEs to understand that larger entities will demand higher compliance from their supply chains to meet these regulations. Therefore, SMEs must proactively understand and prepare for them.
How to find support and training
The Irish Exporters Association runs a comprehensive CSRD and Sustainability Reporting course, as well as webinars and bespoke training. The IEA collaborates with a range of business partners that support companies to minimise their environmental impact.
For more information, contact [email protected].
