How will the Corporate Sustainability Reporting Directive affect the fiber industry?
A new directive is expected to significantly impact EU corporate sustainability practices and influence global reporting standards.
"CSRD" refers to the Corporate Sustainability Reporting Directive: a significant piece of legislation within the European Union. Its main goal is to enhance the scope and quality of sustainability information that companies are required to disclose. This is part of a broader effort to make the European economy more sustainable and to integrate sustainability into the corporate governance framework.
The CSRD is a key component of the EU's Green Deal and Sustainable Finance Disclosure Regulation (SFDR), aimed at mobilizing finance for sustainable growth and requiring financial market participants to disclose sustainability-related information. An especially big shift is the fact that Reports prepared under the CSRD will be subject to auditing. This is intended to enhance the reliability of disclosed sustainability information. Companies will be required to report in a digital format, making it easier to access and analyse the information. Another important development is the fact that the entire supply chain needs to be considered.