Driving Sustainability and Responsibility: CSR Reports for Businesses
Corporate Social Responsibility (CSR) or sustainability reporting is a concept that is becoming increasingly important for businesses, not least due to the EU Taxonomy directive. Soon, companies within Europe will be required to disclose not only their financial figures but also their social and environmental impacts to the auditor. Every business strategy will soon be required to contribute to sustainability. Through this reporting, companies will highlight their ethical business conduct, environmental management strategies, and social engagement, thus fulfilling their responsibility to society and the environment. The EU's Taxonomy focuses on sustainability, environmental protection, and the social impact of businesses, aiming to achieve climate protection goals and promote sustainable business practices in global competition. As of our Company BODE, we will show you why and if you are obligated, what you need to consider, and support you with CSRD reporting.
Summary:
Key points to consider:
Companies above a certain size or those with a capital market orientation will be required to report on CSR in the future.
- The reporting will address the three ESG (Environmental, Social, Governance) areas: ecology, social aspects, and governance.
- The report will cover the company's strategy, strategy implementation, and performance or goal achievement.
- The initiative started in November 2022, and by 2026, even small capital market-oriented companies will be subject to the Taxonomy Regulation
Our tip: Start engaging with sustainability reporting early! We are happy to assist you with our service of providing compliant reporting for your company!
Corporate Responsibility
Sustainable reporting will soon become mandatory for companies above a certain size and engaged in specific activities as part of the EU Taxonomy, particularly the "Green Deal." But what does this mean for companies exactly? The Corporate Sustainability Reporting Directive (CSRD) primarily aims to disclose the social and environmental impact of the company to society. Additionally, it serves as a tool to direct financial flows towards sustainable economic activities and thereby promote the transition towards ecological transformation. Corporate Social Responsibility (CSR) reports hold companies accountable and go beyond their financial performance. With the increasing obligations, social and environmental aspects are integrated into their business models to make a contribution to sustainability.
Sustainable Practices for Your Business and Customers
The key aspect of CSR, translated into German, is sustainability. Companies must be aware that their business activities have an impact on the environment, society, and the economy. Energy management systems such as ISO 50001 or environmental management systems like ISO 14001 will be consolidated into a sustainability strategy in the future, complemented by the themes of "climate protection," "adaptation to climate change," "protection of water and marine resources," and "preservation of biodiversity." Additional aspects that need to be demonstrated include human rights, occupational safety, and fair remuneration – for these points, your consulting firm Bode will be supported by external partners to provide you with a comprehensive and legally compliant package for CSR reporting! An overview of the ESG (Environmental, Social, and Governance) objectives of the EU Taxonomy Regulation can be found in the following graphic:
Your Social Contribution
CSR is also an opportunity for greater well-being and can serve as a tool for creating social value and promoting community engagement. Through social responsibility, companies can contribute to improving the quality of life for people in their surroundings and fulfill their role as responsible businesses. An example of this is corporate citizenship, which refers to companies' involvement in charitable activities.
Overall, sustainability reports are an important approach for companies to fulfill their responsibility to society and the environment while also considering their economic viability. Companies that not only meet their obligations but also embrace CSR can contribute to creating a more sustainable future by placing ethical business conduct and social engagement at the core of their business strategy, thus becoming more future-proof. Looking to take the next step? Reach out to us - your planning firm Bode is here to support you on this journey!
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