Corporate Sustainability explained
Corporate sustainability refers to the concept of a company operating in a way that is socially responsible, environmentally conscious, and economically viable in the long-term. Essentially, it is about balancing economic, environmental, and social considerations to create a sustainable business model that meets the needs of the present without compromising the ability of future generations to meet their own needs.
Another term for this concept is Corporate Social Responsibility (CSR):
Corporate social responsibility (CSR) refers to a company’s voluntary actions and initiatives to address social and environmental issues beyond its legal obligations. It involves integrating social and environmental concerns into business operations and decision-making processes and engaging with stakeholders to understand their needs and concerns. By practicing CSR, companies can enhance their reputation, build trust with stakeholders, and contribute to sustainable development.
Three pillars of corporate sustainability
There are three main pillars of corporate sustainability: economic, environmental, and social.
Corporate Accountability Explained
Corporate Sustainability Reporting Directive (CSRD)
what is it?
The Corporate Sustainability Reporting Directive (CSRD) is the new EU legislation requiring all large companies to publish regular reports on their environmental and social impact activities.
who will be affected?
Almost 50,000 companies are expected to be impacted by CSRD, making up some three quarters of business in the European Economic Area. CSRD will apply to all:
H1 2024 –
Deadline for Member State Transposition (exact date TBC)
2025 –First CSRD Reporting (for FY’s starting in 2024) for companies subject to NFRD
2026 –First CSRD Reporting (for FY’s starting in 2025) for other large EU companies not subjected to NFRD
1st October 2026 –Adoption of limited insurance standards by the Commission
2027 –First opt-in CSRD Reporting (for FY’s starting in 2026) for public interest SME’s
1st October 2028 –Adoption of reasonable insurance standards by the Commission
30th April 2029 –Commission to publish first report on CSRD implementation
2029 –First CSRD Reporting (for FY’s starting in 2028) for non-EU companies with EU branches and first mandatory CSRD reporting (for FY’s starting in 2028) for public-interest SME’s