The Global Business Travel Association (GBTA) is welcoming the adoption of the EU Corporate Sustainability Reporting Directive (CSRD) to create new, detailed sustainability reporting requirements and significantly expand the number of European and non-European companies subject to the European sustainability reporting framework.
The CSRD will replace the existing Non-Financial Reporting Directive (NFRD) and apply to all large companies in the EU, both public and private, affecting approximately 50,000 companies compared to the 11.700 companies previously affected.
Companies with operations outside the EU that have net sales of 150 million euros in the EU and at least one subsidiary or branch in the EU will also be required to submit a sustainability report.
New reporting requirements will include:
- Reporting on social and governance issues (e.g., respect for labor and human rights, anti- corruption and anti-bribery, corporate governance, and diversity and inclusion) in addition to environmental and climate change reporting.
- Disclosing information about a company’s sustainability due diligence processes, as well as actual and potential negative impacts of a company’s operations and value chain.
- Reports on Scope 3 emissions including Scope 3.6 emissions from business travel.
The new CSRD will be phased into use from 2024.
- From Jan. 1, 2024: large public interest entities (with more than 500 employees) already subject to the Non-Financial Reporting Directive, with reports due in 2025;
- From Jan. 1, 2025: large companies not currently subject to the Non-Financial Reporting Directive (with more than 250 employees and/or sales of 40 million euros and/or total assets of 20 million euros), with reports due in 2026
- From Jan. 1, 2026: listed small and medium-sized enterprises (SMEs) and other companies whose reports are due in 2027. SMEs may be exempt from the requirement until 2028.
An independent auditor or certifier will be required to ensure that companies comply with reporting rules and certification standards.
Catherine Logan, Regional VP EMEA, GBTA, said: ”GBTA supports the CSRD and the efforts to increase both the scope of sustainability reporting and companies required to submit a report. The expanded level of reporting will enable investors and procurement professionals to benchmark new suppliers not only financial metrics, but also on a supplier’s purpose, ESG policy and sustainability credentials.”
Delphine Millot, SVP Sustainability and MD GBTA Foundation, GBTA, observed that: “The outcome of the CountEmissionsEU proposal supported by GBTA, will be crucial in providing a harmonized methodology to calculate transport related emissions in the EU, for reporting on scope 3 emissions as required by the CSDR, paving the way for effective decarbonisation of the business travel sector.”