Harvard Business Review France recently published an article describing CSRD as an ambition marker for Europe and an opportunity for its companies to strengthen their competitiveness.<\/p>\n\n\n\n
We will get a real balance sheet and an audited non-financial income statement for all companies subject to CSRD. It will have an impact not only financially, but also on the company’s reputation, and thus its business, which will become central to business.<\/p>\n\n\n\n
HBR France describes this as no less than a “Copernican” revolution.<\/p>\n\n\n\n
Some major banking networks have already indicated that half of the companies’ credit ratings will be based on the evaluation of extra-financial criteria.<\/p>\n\n\n\n
Companies slow to adapt to this new reality are seen as systemic risks by banks and insurance companies.<\/p>\n\n\n\n
Sustainability is a big issue for the financial world because it is considered a necessity for their economic model to survive, and companies are at the heart of that model.<\/p>\n\n\n\n
Consequently, considering this new sustainability report as a new normative requirement dealing with regulatory compliance would be a mistake.<\/p>\n\n\n\n
Since CSRD is the starting point of a profound transformation process – a real opportunity to reinvent the company business model – the topic is extremely strategic and must absolutely be treated as such by the company’s management and board.<\/p>\n\n\n\n
However, according to a recent survey by the VinciWorks Institute, 77% of affected companies have not yet started preparing for this new sustainability reporting, further underscoring the urgency to act.<\/p>\n\n\n\n
The fear this text generates is legitimate and grounded in many factors, including the level of unpreparedness of most companies, consultancies and independent third-party organizations ultimately responsible for reviewing and certifying them.<\/p>\n\n\n\n
But the originality and strength of CSRD is that it is not just another data reporting requirement.<\/p>\n\n\n\n
Of course, traditional sustainability indicators will need to be monitored, managed and published.<\/p>\n\n\n\n
But above all, the company must focus on demonstrating how it integrates sustainability issues into its governance, its strategy, its value proposition and its operations<\/strong>, thus defining a roadmap towards a sustainable economic model that serves all of the company’s stakeholders.<\/p>\n\n\n\n Businesses will need to make commitments to achieve social and environmental goals, thereby helping to provide an answer to the enormous challenges facing our societies and the planet.<\/p>\n\n\n\n This was an excerpt from this HBR France article that we recommend<\/a> (click if you read French).<\/p>\n\n\n\n Now it’s up to us to act! The best time to start was yesterday. The second best is today.<\/p>\n\n\n\n If you do not yet have systems in place to handle CSRD strategy, governance and reporting, you are welcome to contact us here ><\/a>.<\/p>\n\n\n\n <\/p>\n\n\n\n