A recent assessment of 100 large companies in France, shows that the road is bumpy and that there is still a lot of work to do:<\/p>\n
\u27a1 83% of the assessed companies present a materiality analysis, but only 14% publish a \u201cdouble materiality\u201d analysis following the requirements as defined by ESRS 1.<\/p>\n
\u27a1 73% have defined decarbonization objectives validated by the SBTi, but only 17% detail the different decarbonization levers allowing them to achieve their objectives, as required by ESRS E1.<\/p>\n
\u27a1 Not even half of the companies publish (or declare that they take into account) the analysis of at least one climate scenario and quantify their climate risks – and 4 out of 5 do not include climate transition risks.<\/p>\n
\u27a1 Less than 10% have defined pollution objectives, only 31% publish water consumption reduction targets and only 13% declare the number of production sites located in or near sensitive areas in terms of biodiversity.<\/p>\n
\u27a1 Only 30% have formalized objectives related to the circularity of products and their packaging but 51% declare waste management objectives.<\/p>\n
\u27a1 53% publish indicators related to the gender pay gap of their employees at group level, but only 8% provide information to compare low wages to decent wages.<\/p>\n
This assessment of large companies in France, shows what we all already suspected: there is a long way to go – both to grasp the holistic vision of the ESRS framework, and to get organized around these reporting requirements.<\/p>\n
Many still think that CSRD is mostly about reporting on GHG emissions, and this carbon tunnel vision is not helpful.<\/p>\n
Reducing emissions remains a key challenge, but the fact is that even in the ESRS E1 Climate change standard less than 20% of the disclosure points are about reporting on emissions.<\/p>\n
Strategy, governance, processes, climate change resilience, and climate-related impacts, risks & opportunities are very much in focus. It is as much about preparing for a different future, and future-proof our businesses, as it is about mitigating climate change.<\/p>\n
CSRD and ESRS are a game-changer for corporate accountability, in the EU and globally. It is not just about a report to fill in, it\u2019s a new way of governing that will take several months – even years – to prepare.<\/p>\n
The best time to get started was yesterday. The next best time is today.<\/p>\n
Step one is understanding – in detail – what will be expected.<\/p>\n
This can be done by navigating and learning the standards – every single disclosure point (approx. 990 in ESRS, whereof approx. 250 metrics, subject to materiality assessment).<\/p>\n
The CSRD-compliant and ESRS-ready Sustainability Strategy, Governance & Reporting SaaS solution Cleerit ESG \u2013 with every single disclosure point digitized \u2013 helps you navigate the standards, learn and prepare \u2013 to get CSRD-ready.<\/p>\n