The Corporate Sustainability Reporting Directive will impact EU companies in 2024. As they prepare for compliance, it’s not just about ticking boxes – Europe’s ESG ambitions bring additional regulations. The Corporate Sustainability Due Diligence Directive, and the ban on products made with forced labor, add layers to environmental and social sustainability rules.
With the threat of fines for non-compliance, the European Commission is using a carrot-and-stick strategy. New legislation poses risks, but responsible consumption initiatives nudge companies toward sustainable practices.
While some 12,000 EU companies appear to be directly affected, the ripple effect through supply chains is significant. Suppliers complying with EU regulations, while not required, extend the impact. With an average cost of €80,000, small businesses may struggle financially and resource-wise.
IT software and service providers, seize the opportunity! In the ERP software space, portfolio alignment is key. EU requirements demand homework – alignment with SME needs is critical. Automating data collection, analysis and reporting can simplify the compliance process.
Sustainability is data-driven. Navigating the complexity of data is a challenge for multinational companies. Software solutions play a critical role in aggregating and streamlining this process, ensuring a central repository for compliance.
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