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Scanfil Progressing Well in its CSRD
November 29, 2024 | ScanfilEstimated reading time: 1 minute
The Corporate Sustainability Reporting Directive (CSRD) is a significant legislative measure introduced by the European Union (EU) to enhance the transparency and accountability of companies regarding their environmental, social, and governance (ESG) impacts.
Scanfil started preparing for the CSRD in 2023. Data collection with an audit trail and the first draft report were produced in August 2024. All the hard work will pay off in early 2025, when Scanfil’s first CSRD report will be published.
The CSRD aims to provide investors, analysts, consumers, and other stakeholders with clear and consistent information about a company’s sustainability performance. This transparency and standardized reporting enable stakeholders to compare and make better-informed decisions based on reliable ESG data. Companies must report not only how their activities impact the environment and society, but also how sustainability matters affect their financial performance. This dual focus ensures a holistic view of a company’s sustainability efforts, and it is called Double Materiality Analysis.
To ensure the accuracy and completeness of the reported data, the CSRD requires third-party auditing of all disclosures. This independent verification adds an extra layer of trust and reliability to the reported information.
Does all this create value for the companies? By providing clear and consistent ESG data, companies can build greater trust with customers, investors, and other stakeholders. This transparency can attract more interest and drive company revenue, profitability, reputation, and the price of money. It is sometimes forgotten that reporting on sustainability metrics can highlight areas where companies can improve efficiency, such as reducing energy consumption or waste. These improvements can lead to cost savings and operational benefits.
This aims to reduce pollution, better resource management, and overall positive environmental outcomes. It can also lead to improved working conditions, fairer treatment of employees, and stronger community relations.
The CSRD represents a significant step forward in promoting sustainability and transparency in the corporate world. By mandating comprehensive and standardized sustainability reporting, the directive benefits both companies and society, fostering a more sustainable and accountable business environment.
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