On November 28, 2024, the Belgian Chamber of Representatives adopted the long-awaited law transposing the EU Corporate Sustainability Reporting Directive (CSRD) into Belgian legislation. This game-changing regulation expands the scope of sustainability reporting, ensuring greater transparency and accountability. The law will come into force upon its publication in the Belgian Official Gazette.
Everyone talks about CSRD: What does it mean?
The EU Corporate Sustainability Reporting Directive is a significant legislative measure adopted by the European Union to enhance and standardize sustainability reporting across member states. It replaces the Non-Financial Reporting Directive (NFRD) and aims to address its shortcomings by expanding the scope and improving the quality of sustainability disclosures. The CSRD supports the Green Deal's objectives, by requiring companies to disclose their sustainability practices and impacts through ESG factors.
What businesses need to be aware of:
- The CSRD applies to all large companies and listed SMEs in the EU, except micro-enterprises. See below to find out when your compliance is due.
- Listed SMEs may opt for a simplified model of sustainability reporting.
- The CSRD represents a shift toward double materiality, requiring companies to disclose how they impact the environment and society, and how sustainability issues can affect the company financially.
- Belgian companies must align their reporting practices with European Sustainability Reporting Standards (ESRS), which provide a standardized framework for sustainability reporting across the EU.
- The CSRD mandates assurance of sustainability information to improve the quality of the reporting but also to prevent greenwashing.
- Companies will have to prepare their annual reports, including sustainability information, in a digital format specified by the European Commission.
- In exceptional cases, information may be omitted if disclosure would cause serious harm to the company’s commercial position.
- Non-compliance with the CSRD can result in significant fines, depending on the severity of the violation and the size of the company.
- Even if your company isn’t required to comply with the CSRD, your customers, suppliers, or partners might be, and they’ll need sustainability data from you. Aligning with CSRD principles now ensures you stay competitive and meet growing market expectations for transparency and ESG performance.
How can Avertim help YOU?
Whether your business is big or small, the CSRD might seem daunting at first. But don’t worry, our team at Avertim is ready to guide you through these reporting changes. From understanding the country- and company-specific requirements to preparing robust sustainability strategies and ensuring audit readiness, we’re here to guide your transition seamlessly. Reach out to us to discuss how your business can navigate these changes and leverage the CSRD to drive value at sustainability@avertim.be .
While the CSRD may initially seem like an additional compliance task, it is crucial to recognize its broader significance. Beyond mere compliance, the CSRD will enable your business to gain a deeper understanding of its ESG (Environmental, Social, and Governance) practices and identify areas for future improvement. Embracing the CSRD is not just about meeting regulatory requirements today; it is about fostering a more sustainable and responsible business that contributes to a better future for all. Let's view it as an essential step towards enhancing your company's performance and creating a positive impact on society and the environment.
