A typical sustainability report addresses a number of key areas. On the one hand, environmental issues include topics such as emissions, water and energy consumption, waste management and biodiversity. In terms of social aspects , reports cover working conditions, human rights, community work and social responsibility. Finally, with regard to corporate governance, financial stability, ethical behavior and the contribution to the local economy also play a crucial role in the sustainability report.

Firstly, in many places companies are legally obliged to publish regular sustainability reports. In addition, by documenting and analyzing their sustainability initiatives, companies can identify potential risks and develop mitigation strategies. Companies that report transparently on their sustainability practices can thereby strengthen stakeholder confidence, position themselves as responsible market leaders and consequently attract investment.

The specific legal requirements that become relevant for a company depend on its location and size. The new regulations are being introduced gradually. The CSRD regulations apply to large companies based in the EU. For small and medium-sized companies, the VSME standards apply first.

The Corporate Sustainability Reporting Directive (CSRD) is a new EU regulation that tightens the requirements for sustainability reporting. It replaces the previous Non-Financial Reporting Directive (NFRD) and aims to improve the quality and comparability of sustainability reporting.

According to the CSRD, sustainability reports must contain detailed information on environmental, social and governmental (ESG) issues and be prepared in accordance with recognized reporting standards, specifically the ESRS. CSRD reporting is based on the principle of double materiality.

The ESRS are a set of harmonized standards developed by the European Union to support companies in preparing sustainability reports in accordance with the Corporate Sustainability Reporting Directive (CSRD). The ESRS complement the CSRD by providing a detailed framework for reporting, ensuring that companies in the EU can communicate their sustainability efforts clearly and consistently.

The ESRS contain specific requirements that companies must adhere to when reporting on their sustainability practices. There are currently 12 standards available, including two general standards and 10 standards on specific topics. Which standards you need to follow depends on factors such as your business activity, size and type of industry.

From 2024, all large companies in the EU will be obliged to prepare sustainability reports in accordance with the new CSRD standards. The obligation will be gradually extended in subsequent years.

The integration of the sustainability report as a separate section of the annual report means that the sanctions for non-compliance with the reporting regulations correspond to the strict rules for the annual report. The specific penalty is based on various factors, including the severity and duration of the breach and the financial situation of the company. It can range from monetary fines to the imposition of custodial sentences.

CoPLIANCE Managed Service helps you identify the key issues, collect the data correctly and produce CSRD-compliant calculations for the final report. We take care of the discussion with auditors and tax advisors.

In principle, the market offers either consulting or software. Although external consulting services are highly individualised, they make little use of standardisation and are therefore very expensive. Software solutions benefit from a high degree of automation, but lack in flexibility to map company specific issues. In order to ensure compliance, an additional employee is usually required to operate the software.

Individual consulting makes sense for some customers, but is often very costly, while software is cost-effective in principle, but neglects individual elements. CoPLIANCE's Managed Service combines the advantages of the two. Cost efficiency is achieved through a high level of automation, while the individualisation required to ensure compliance is handled by CSRD managers.

A major advantage of our Managed Service is the customisation and proximity that is achieved by our CSRD managers as part of the personalised service. In addition, CoPLIANCE is cost-effective, as cost savings are achieved through automation and the use of artificial intelligence. Our managed service is also integrative, as it allows seamless integration into existing processes and can support your sustainability managers at every step.