| SiB Solutions’ ambition is to have a net positive impact on the environment. The company has previously investigated its benefits for customers, benefits originating from fewer faulty deliveries and goods that must be returned or discarded due to incorrect packaging. However, SiB Solutions has yet to investigate the environmental impacts originating from its operations. Currently, the company is not large enough to be required to report on sustainability. However, SiB Solutions intends to grow and possibly get listed on the stock exchange. Therefore, the company wants to create a better understanding of its climate impacts and the demands of new sustainability reporting regulations.
The EU implemented the Corporate Sustainability Reporting Directive (CSRD) to enhance transparency and accountability in corporate sustainability practices, requiring companies to report according to the new European Sustainability Reporting Standards (ESRS). These standards mandate far more comprehensive sustainability information compared to the previous Non-Financial Reporting Directive, providing stakeholders with reliable insights into companies' environmental and social impacts while supporting the EU's broader sustainability goals. The directive came into effect for financial years starting on or after January 1, 2024, with the first reports published this year. The CSRD initially applies to large companies, with plans to gradually include smaller entities, such as listed SMEs.
However, recently proposed changes to the CSRD (as well as the CSDD and EU Taxonomy) in the so-called Omnibus proposal would, if approved, change CSRD implementation significantly. Under the new proposal, only companies with more than 1,000 employees and either a turnover above €50 million or a balance sheet above €25 million would be included in the scope of the CSRD, removing an estimated 80% of companies from the regulation’s sustainability reporting requirements. The proposal would also simplify reporting demands significantly.
|
