How are you preparing for the Perfect Storm?

Ignoring environmental demand, consumer demand, employee demand, new talent demand, investor demand, lender demand and greater growth and profit for a moment….

 

Will the CSRD affect your business?

Will the EU Climate Law affect your business?

Will Net Zero affect your business?

 

As we have been reporting for some time, and as stated here, the European Union (EU) Corporate Sustainability Reporting Directive (CSRD), which was signed into law in November 2022, will take effect in 10 months (the beginning of 2024).

This will require more than 50,000 large EU companies to disclose their ESG (Environmental, Social and Governance) information.

This will also impact smaller EU companies and EU-subsidiaries of non-EU companies.

Roughly 97% of all large companies already have sustainability programs (the E in ESG).  Having a sustainability program mandates them to use sustainable vendors.  However, to-date, most have taken a relaxed approach to their supply chain, as they did not know about Edenark Group and felt their suppliers were unable to obtain a global sustainability certification at a price they could afford.

In prior posts, we reported the increased attention CEOs are now giving to sustainability, tasking their teams, inclusive of the Procurement Department, to adhere to their sustainability goals.  Expect this to translate to greater demand that their vendors (ie, you) prove their sustainability commitment (ie, show a certification or 3^rd party verification). 

For those of you who think you have skated past the CSRD, don’t forget about the EU Climate Law and Net Zero.

The EU Climate Law will require reporting on carbon emissions for larger organizations.  Remember, your company’s carbon emissions are your Scope 1, but they are your client’s Scope 3.  Any organization that is reporting on its carbon emissions and is also pursuing Net Zero needs to have its Scope 3 carbon emissions data, which, again, means you.

Net, there is a perfect storm of the CSRD, the EU Climate Law and Net Zero goals for organizations in, partially in, or serving those in, the EU.

Even if you have no involvement with the EU, expect the same from your clients elsewhere in the world that a) are deciding to adhere to their own sustainability mandates and/or b) are pursing Net Zero.   

If you want to get ahead of this and use it to your advantage, this PPP will show you how.