What is the EU Corporate Sustainability Reporting Directive (CSRD)?
The CSRD is a new EU legislation that requires large companies to disclose information on the way they operate and manage social and environmental challenges. It expands the scope and detail of non-financial reporting, aiming to give investors and stakeholders a more complete picture of a company's sustainability performance. Our team is fully equipped to guide you through the complexities of CSRD compliance, from data collection to final report preparation.
How do you measure the ROI of an ESG program?
The return on investment (ROI) of ESG can be measured through various metrics. These include operational cost savings from energy efficiency, enhanced brand value and customer loyalty, improved employee recruitment and retention rates, better access to capital from ESG-focused investors, and reduced risk of fines or legal action. We help you establish key performance indicators (KPIs) to track both financial and non-financial returns from your sustainability initiatives.
What is a 'materiality assessment'?
A materiality assessment is a systematic process to identify and prioritize the ESG issues that are most significant to your business and its stakeholders. It involves engaging with internal and external stakeholders to understand their concerns and expectations. The outcome is a 'materiality matrix' that helps you focus your ESG strategy and reporting on the topics that matter most, ensuring your efforts are both impactful and relevant.
Can a small business implement an ESG strategy?
Absolutely. While regulations may primarily target large corporations, implementing an ESG strategy offers benefits to businesses of all sizes. For small and medium-sized enterprises (SMEs), it can be a powerful differentiator, helping to attract talent, appeal to conscious consumers, and strengthen supply chain relationships. We offer scalable solutions tailored to the resources and goals of smaller businesses.
How is ESG different from Corporate Social Responsibility (CSR)?
While related, they are different. CSR is often focused on philanthropy and community engagement, sometimes separate from the core business. ESG is a more comprehensive framework that is fully integrated into a company's strategy and risk management. It uses specific, data-driven criteria to measure performance across environmental, social, and governance factors, making it more relevant to investors and financial performance.
What is the EU Taxonomy for Sustainable Activities?
The EU Taxonomy is a classification system that establishes a list of environmentally sustainable economic activities. It is a tool to help investors, companies, and policymakers identify which investments are truly 'green'. To be considered taxonomy-aligned, an activity must substantially contribute to at least one of six environmental objectives (e.g., climate change mitigation) and do no significant harm to the others. We help clients assess their activities against the taxonomy criteria.