Eija Hietavuo

The EU’s Corporate Sustainability Reporting Directive (CSRD) becomes effective for many entities in 2024, with a later effective date for some entities. The scope of the CSRD will apply to many non-EU groups, which will have a significant effect, including the requirement to apply European Sustainability Reporting Standards. It is crucial for non-EU groups to determine if they will have a reporting obligation under the CSRD. BDO’s ISRB 2024/05 summarises the scoping rules of the CSRD applicable to non-EU groups.

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The CSDDD is (almost) final, so what now for your organisation?   The European Parliament is expected to approve the agreed text of the Corporate Sustainability Due Diligence Directive (CSDDD) this week. This will pave the way for the Directive to enter into force and then apply from mid-2027 for the largest companies.   💡 Read our latest insight to understand:   ⚠ The crucial challenges that companies must navigate in order to meet the requirements of the Directive.   💨 How companies can streamline their response to the CSDDD by aligning it with their existing sustainability efforts, including their CSRD strategy.    🌍 The range of opportunities that companies can unlock from effectively responding to the new requirements.   Please get in touch with the #EMEASustainabilityRegulationHub with any questions.   #CSDDD #CSRD #Sustainability #SustainableSupplyChains https://lnkd.in/eHinnGZY Ruth Kilsby | Magdalena Puźniak-Holford | Ramon Bravo | Adithya Subramoni | David Strachan | Lubna S. Al-Sheikh, ACA

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🌍 On 24 April 2024, the EU Parliament adopted the final text of the Corporate Sustainability Due Diligence Directive ("CSDDD" or "Directive"), setting a due diligence standard for corporate social and environmental responsibility. This marks a significant evolution in the EU's corporate accountability landscape.   ⏭ Next steps: The Council of the EU must approve the final text for it to officially become law.   Our experts, Wouter Vandorpe, Gerard McElwee, Peter Sellar, and Lars Raedschelders, break down the challenges and opportunities this directive brings for business partners of in-scope companies. From corporate due diligence requirements to the impact on business operations, we've got you covered.   💼 Whether you're an SME looking to expand sustainably or a business partner seeking to navigate the changing regulatory terrain, discover how this shift in corporate accountability isn't just about compliance—it's about transforming challenges into strategic advantages.   💡 Read the full article by clicking below!   Have questions about how aligning with CSDDD standards can enhance relationships, open new markets, and set your business apart in a competitive landscape? Reach out to one of our experts.   #FieldfisherBelgium #CSR #Sustainability #EURegulations  

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[#LetsTalkSustainability] The Corporate Sustainability Due Diligence Directive (#CSDDD), the aim of which is to oblige companies to mitigate #humanrights and environmental risks in their #valuechain, is an important complement to existing regulations, especially the #CSRD. Hester Bos, Senior Sustainability Manager, Mazars in Nederland, and Maria Riegler, Senior ESG & Sustainability Consultant, Mazars in Austria, look into the implications of the adoption of the CSDDD: http://maza.rs/6045YTUQ3

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[#LetsTalkSustainability] The Corporate Sustainability Due Diligence Directive (#CSDDD), the aim of which is to oblige companies to mitigate #humanrights and environmental risks in their #valuechain, is an important complement to existing regulations, especially the #CSRD. Hester Bos, Senior Sustainability Manager, Mazars in Nederland, and Maria Riegler, Senior ESG & Sustainability Consultant, Mazars in Austria, look into the implications of the adoption of the CSDDD: http://maza.rs/6045YRBAP

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We need more regulation to ensure that the sustainability transitions happen. But regulation is not a set and forget process. We need to constantly be checking that the regulators are doing their job, and doing it well. We know that regulation is not perfect, every regulation has flaws. But in most cases they give us 80-90% of the outcomes we seek. I will take those odds every time. But sometimes regulation fails. It lets us down, and lets us down badly. And this is particularly worrying when it relates to our safety. This doesn't make regulation a bad thing. But it does mean that we cannot 'set and forget'. We need to have processes that hold regulators to account, and that ensure regulation remains appropriate. The recent example in Korea relating to hydrogen refueling equipment is a case in point (highlighted in an article from by Hydrogen Insight). According to a government audit the Korea Institute of Industrial Technology (Kitech), issued 14 false and fabricated test results on hydrogen refueling equipment. And when the fake tests where discovered, senior managers covered it up. As the article points out the tensile strength test determines the force at which the hose breaks, while the hydraulic rupture test determines the pressure at which it will rupture. The hose must be able to deliver hydrogen at pressures of 700 bar (ie, 700 times higher than atmospheric pressure) at temperatures as low as minus-65°C, a demanding requirement. Having worked in the gas industry (many years ago) I know just how important these tests are - for the safety of the plant operators, and for the general public. We could think of this as an isolated incident, and yet sadly it's not. A report issued by the Fukushima Nuclear Accident Independent Investigation Commission (NAIIC) after the Fukushima Daiichi nuclear disaster identified a long list of technical failures that contributed to the disaster, laying blame squarely on the shoulders of the energy utilities, regulators and the government. One explanation that is frequently advanced for regulatory failure is what is called regulatory capture. This is when the companies being regulated end up effectively 'taking over' the regulatory agency in everything but name. And the phenomenon of regulatory capture is as old as regulation itself. To be clear. This is not an argument against sustainability regulation. I believe that many of the changes we are seeking will not take place without effective regulation. The financial markets on their own will not deliver. But it is a plea for constant alertness - ensuring that once regulation is in place, it's properly enforced, and that we ensure the bodies responsible for this are fit for purpose. Regulation may not be perfect, but it's often the best tool we have. Let's make sure it works. This was the topic of a recent Sunday Brunch for The Sustainable Investor, read it for free

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The EU’s Corporate Sustainability Reporting Directive (CSRD) becomes effective for many entities in 2024. The CSRD significantly expands both the scope of existing requirements (including to some non-EU groups) and the sustainability reporting requirements, which will be in accordance with European Sustainability Reporting Standards. BDO’s ISRB 2024/04 summarises the scope and requirements of the CSRD.

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Do you have questions about the new #CSRD (#CorporateSustainabilityReportingDirective) out of the EU that mandates companies, both within and outside the European Union, to report on ESG/sustainability issues? If so, you are not alone. We have heard from many within the mining industry who are wondering how this will affect them. Let us help clear up some of those questions. Next week (Thurs, May 9th at 12:30 p.m. ET) we will host a free webinar where our Avi (Aviatar) Inbar, Vice President of Business Development and our expert on disclosures and compliance regulations, will break it all down - who will be affected and what actions you should take to be compliant. To register and receive a calendar invitation, send an email to abellashley@soopstrategies.com. We hope you'll join us! #sustainability #ESG #sustainabilityinmining

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The EU’s Corporate Sustainability Reporting Directive (CSRD) becomes effective for many entities in 2024. The CSRD significantly expands both the scope of existing requirements (including to some non-EU groups) and the sustainability reporting requirements, which will be in accordance with European Sustainability Reporting Standards. BDO’s ISRB 2024/04 summarises the scope and requirements of the CSRD.

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𝗛𝗼𝘄 𝘀𝗵𝗼𝘂𝗹𝗱 𝘄𝗲 𝗴𝗼 𝗮𝗯𝗼𝘂𝘁 𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗶𝗻𝗴 𝗮𝗻 𝗘𝗦𝗚 𝗣𝗼𝗹𝗶𝗰𝘆? As ESG becomes increasingly more important, this is a question that smart leaders are asking. In this article I outlined the general approach we take when we accept assignments to work with firms on the development of an ESG Policy.

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The European Sustainability Reporting Standards (ESRS) which are applicable for periods beginning on or after 1 January 2024 are based on two dimensions of materiality - impact materiality and financial materiality. Impact materiality is based on the entity's material actual or potential, positive or negative impacts on people or the environment over the short, medium or long-term. Impacts include those connected with the entity's own operations and the upstream and downstream value chain, including through its products and services, as well as through its business relationships. A sustainability matter is material from a financial perspective when it generates risks or opportunities that have a material influence, on the entity's development, financial position, financial performance, cash flows, access to finance or cost of capital over the short, medium or long-term. Though impact materiality and financial materiality are two different perspectives, they are often intertwined. An entity needs to carry out a proper materiality assessment when reporting as per the ESRSs. #finance #accounting #financialstatements #internalaudit #externalaudit #charteredaccountants

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[#LetsTalkSustainability] The Corporate Sustainability Due Diligence Directive (#CSDDD), the aim of which is to oblige companies to mitigate #humanrights and environmental risks in their #valuechain, is an important complement to existing regulations, especially the #CSRD. Hester Bos, Senior Sustainability Manager, Mazars in Nederland, and Maria Riegler, Senior ESG & Sustainability Consultant, Mazars in Austria, look into the implications of the adoption of the CSDDD: http://maza.rs/6049Yr6At

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ISSB Explores Developing New Disclosure Standards for Biodiversity, Human Capital - The IFRS Foundation’s International Sustainability Standards Board (ISSB) announced plans to launch new projects researching corporate disclosure on risks and opportunities in key sustainability-related areas including biodiversity, ecosystems and ecosystem services, and human capital, with the initiative aimed at informing its work on future sustainability reporting standard setting. According to ISSB Chair Emmanuel Faber, the new project follows market feedback which “indicated a significant and growing need among investors for improved disclosures” regarding nature and human capital “as a key source of value for companies.” Faber added: “Beyond climate, we are committed to building out the global baseline of sustainability-related financial disclosure to meet the needs of investors.” The ISSB was launched in November 2021 at the COP26 climate conference, with the goal to develop IFRS Sustainability Disclosure Standards, driven by demand from investors, companies, governments and regulators to provide a global baseline of disclosure requirements enabling a consistent understanding of the effect of sustainability risks and opportunities on companies’ prospects. The new project follows the launch last year of the inaugural general sustainability (IFRS S1) and climate (IFRS S2) reporting standards, which are expected to inform emerging disclosure requirement systems from many regulators globally, with a wide range of jurisdictions already announcing intentions to adopt the standards, including the UK, Canada, Brazil, Japan and South Korea, among others. Following the release of the new standards, the ISSB launched a consultation on its priorities for its next two-year work plan. In a recent meeting, the board decided that it’s upcoming activities will prioritize activities including beginning new research and standard-setting projects, and supporting the implementation of IFRS S1 and IFRS S2, in addition to enhancing the industry-specific SASB standards, pursuing connectivity between the IFRS’ sustainability and financial disclosure standards and interoperability between its sustainability standards and others, and engaging with stakeholders. In its statement announcing the new research projects, the ISSB said that its focus on nature and human capital was informed by its consultation, while market feedback also has led the board to not embark on projects related to risks and opportunities associated with human rights, beyond risks and opportunities relating to a company’s own workforce and workers in its value chain. While the board noted that its general sustainability disclosure standard IFRS S1 already requires reporting on material information about all sustainability-related risks and opportunities, the new projects “will enable the ISSB to embark on its own standard-setting work in key areas needed to establish more sp

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As a sustainability reporting practitioner in a multinational corporation subject to the CSRD, I appreciate the recent decision by the European Council to postpone the implementation of sector-specific sustainability reporting standards (as well as the standards for the companies operating outside the EU). The new deadline is now June 30th, 2026. This extension allows companies in scope to focus their efforts on proper implementation of the first set of ESRS. A question to my peers - What do you consider the most challenging aspects of your current preparations for ESRS reporting? #CSRD #ESRS #sustainabilityreporting #esgreporting #reportingrequirements https://lnkd.in/d5cadC6n

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Global Reporting Initiative Biodiversity Reporting Standard (GRI 101) On 24 January 2024, the GRI issued its new Biodiversity Reporting Standard (GRI 101) to help organizations make voluntary disclosures on their biodiversity-related impacts and approach to managing these impacts. The new intitiave to disclose: - Full transparency throughout the supply chain often where the most significant impacts on biodiversity can go under reported. - Location-specific reporting on impacts – including countries and jurisdictions, with detailed information on the place and size of operational sites. - New disclosures on the direct drivers of biodiversity loss – covering land use, climate change, overexploitation, pollution and invasive species. - Requirements for reporting impacts on society – including those on communities and Indigenous Peoples, and how organizations engage with local groups in the restoration of affected ecosystems. Ref#Global Reporting Initiative

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Big news! Just transition planning becomes a global model for corporate transition plans thanks to the adoption by the IFRS Foundation of the Transition Plan Taskforce (TPT) outputs. I had the privilege of co-leading the Just Transition Working Group for the TPT with Nick Robins, Brendan Curran and Jodi-Ann Jue Xuan Wang and our amazing group members from across finance and the real economy. Together, we established a baseline for why and how companies should consider people in their plans to respond and contribute to a net zero future. This means their employees, people in their supply chains, their customers, and the communities they impact. A huge well done to the brilliant TPT secretariat, the vision of the steering group, and the hard work of everyone in the working groups. Transition plans are a vital mechanism for moving industries towards net zero and for providing the information investors need to allocate their capital to the companies that are going to be fit for the future. Let’s ensure they factor in the people and communities upon whom they depend.

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The European Sustainability Reporting Standards (ESRS) framework emphasizes double materiality. This means companies must assess both:   Financial materiality: How ESG issues impact their bottom line. Impact materiality: How their operations affect the environment and society.   One blind spot? Biodiversity. Why is this important? Biodiversity underpins ecosystems, human health, and economic development. Its decline poses a significant threat. Challenges companies face: Lack of awareness: Many miss the link between their operations and biodiversity loss. Complexity: Measuring and reporting on biodiversity is intricate. Indirect impacts: Biodiversity loss can take years to show, making it harder to track. Regulatory gaps: Until recently, reporting on biodiversity was less stringent than other ESG factors.   Take action! Many companies remain unaware of their biodiversity impact. A thorough analysis is crucial to identify potential financial risks and dependencies.   Read our article to discover how to address biodiversity in your double materiality analysis. Dutch article 👉 https://bit.ly/46cAcas French article 👉 https://bit.ly/3WbVf8v       Let's all play our part in conserving biodiversity for future generations!   #RSMBelgium #DoubleMateriality #ESG #Sustainability #Biodiversity #ESRS

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Very often, #biodiversity is a blind spot for companies 🌱 ❓ Why is dealing with this blind spot important? Biodiversity refers to the variety of life on Earth, including the variety of species, #ecosystems, and genetic diversity within species. Despite its importance, biodiversity often remains a blind spot for companies. In our article, we explain how companies can address Biodiversity in Double Materiality Analysis. To find out more, read our article on our website 👉 https://lnkd.in/ebpCRp_7 Also available in Dutch & French! #DoubleMateriality #ESG #Sustainability #ESRS

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