March, 2024
The recent guidelines from the European Union are ushering in a seismic shift in how businesses approach sustainability, focusing on a more responsible and transparent approach. The Green New Deal, whose framework is nearing completion, represents a significant milestone in this movement, bringing regulations that solidify definitions, limits, categorizations, and reporting.
One of the final pieces of this puzzle is the Corporate Sustainability Due Diligence Directive (#CSDDD), which aims to transform environmental, social, and governance (ESG) sustainability into a report and an integral business model. But what are the concrete changes these guidelines will bring?
First and foremost, it is hoped that #greenwashing, the common practice of misleading sustainability claims, will end with the implementation of the EU taxonomy. Additionally, the importance of non-financial information will be equated to financial information, according to the #CSRD Directive. This will bring more transparency to investments, thanks to the #SFRD Directive, which will put financial entities in the spotlight regarding sustainability.
Risk management also receives special attention, with Pillar 3 establishing clear rules for banks’ risk appetite and management. The Corporate Sustainability Due Diligence Directive (#CSDDD) is a critical component of this landscape, requiring companies in the EU to conduct their business responsibly, identifying, preventing, mitigating, and being held accountable for negative impacts on human rights and the environment.
However, questions arise about the feasibility and complexity of sustainable reporting. How can non-financial goals be defined and progress proven? Companies must be prepared to face these challenges, with boards and administrations taking greater responsibility for integrating sustainability risks and impacts into strategy and implementing due diligence processes.
In this context, companies like Link Consulting are positioning themselves as strategic partners, offering digital and automated solutions to simplify data collection and management. By partnering with Greenomy, Link aims to support companies’ green and digital transformation, making compliance with the new guidelines a reachable and beneficial task for all involved.
For more information on how your company can adapt and thrive in this new landscape of corporate sustainability, contact Link via email at esg@linkconsulting.com or your account manager.
