The business world is facing a wave of change.
With the introduction of concepts such as the Corporate Sustainability Reporting Directive (CSRD), the Environmental, Social and Governance (ESG) criteria and the Sustainable Development Goals (SDGs) of the United Nations, companies are facing new challenges.
Particularly affected by these changes are medium-sized companies in Austria that employ more than 249 people and/or have a balance sheet total of more than 43 million euros.
What these changes mean for your company and how HERZBLUAT can support you in overcoming these challenges is explained below.
What is in store for Austria's SMEs with more than 249 employees and/or more than 43 million euros in total assets in the next 2 to 5 years?
And what can HERZBLUAT specifically do for them?
What is the impact of CSRD, ESG, SDG & Co. on Austria's companies?
CSRD, ESG, SDG - what do these abbreviations mean? How do they affect us?
CSRD: A new era in corporate reporting
The CSRD is an initiative of the European Union with the aim of improving the transparency of companies with regard to their sustainability performance [*1].
From 2023, companies will be required to report on their sustainability performance, including information on their environmental impact, social aspects and corporate governance.
This means that companies need to rethink their business models and strategies to ensure they meet these new demands.
ESG: A new standard for business practices
ESG criteria are another important factor changing the corporate landscape.
They refer to three key factors for measuring the sustainability and social impact of a company: environment, social and governance.
Companies that integrate these criteria into their business models and strategies can not only improve their sustainability performance, but also strengthen their competitiveness.
SDGs: Global Goals for a Sustainable Future
The SDGs are 17 global goals set by the United Nations to promote sustainable development [*2 ][*3].
They cover a wide range of issues, including poverty, hunger, health, education, gender equality, clean water, clean energy, decent work, industry, innovation, infrastructure, sustainable cities and communities, responsible consumption and production, climate action, life under water, life on land, peace, justice and strong institutions [*4] [*5].
Companies play a crucial role in achieving these goals and can reap significant benefits by integrating them into their business strategies.
Information requirements on sustainability aspects:
New regulations for companies.
Introduction of the Corporate Sustainability Reporting Directive (CSRD)
On 14 December 2022, the Corporate Sustainability Reporting Directive (CSRD) was published in the Official Journal of the European Union.
This directive aims to strengthen the European Union's pioneering role in setting sustainability standards.
It enables the harmonisation of sustainability data by introducing standards for sustainability reporting.
New regulations and requirements
The CSR Directive amends the existing 2014 Non-Financial Reporting Directive and introduces more detailed reporting requirements.
Large companies must now report on issues such as environmental rights, social rights, human rights and governance factors.
The CSR Directive establishes uniform European reporting standards and introduces an audit requirement for sustainability reports.
Non-compliance could result in sanctions and the loss of investments.
Scope of EU rules
EU rules apply to all large companies and all companies listed on regulated markets, with the exception of listed micro-entities.
A "large company" is a company that exceeds at least two of the following criteria:
- Net sales of 40 million euros,
- Balance sheet total of 20 million euros,
- 250 employees on average per year.
Reporting on sustainability issues relevant to the company
The CSR Directive (CSRD) requires a statement containing all information necessary for an understanding of the company's business performance, results, position and the impact of its activities.
This includes disclosure of climate and environmental impacts, social impacts and responsibilities, climate-related risks and financial uncertainty factors.
Testing, verification and standards
Reporting must be verified by an accredited independent auditor or certifier.
The European Financial Reporting Advisory Group (EFRAG) has already published the first standards on sustainability reporting (ESRS).
Format and digitisation
In future, the required information is to be included in the management report of the annual report, which is to be published no later than four months after the end of the business year.
The publication shall be in machine-readable form.
The Directive enters into force 20 days after its publication and must be transposed into the national law of the Member States within 18 months.
Corresponding adjustments are to be made by the Austrian legislator by mid-2024.
The role of HERZBLUAT
Combination „Management consultancy“ PLUS „Marketing- & Advertising agency“
In this rapidly changing environment, HERZBLUAT plays a decisive role for you as a combination of management consultancy, marketing and advertising agency.
With our expertise in developing radical, innovative and sustainable strategies, we support companies in meeting these new requirements and improving their sustainability performance.
Business model, transparency and credibility
We help you rethink your business models and strategies to ensure they meet the requirements of CSRD, ESG criteria and SDGs.
We also support you in improving your sustainability reporting to increase the transparency and credibility of your company.
Innovation and sustainability
HERZBLUAT advises you on the development of innovative and sustainable products and services that not only have a positive impact on society and the environment, but also strengthen your competitiveness.
With our marketing and advertising services, we strengthen your brand and support you in effectively communicating your sustainability achievements.
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The introduction of concepts such as CSRD, ESG criteria and SDGs poses new challenges for companies.
Companies need to rethink their business models and strategies to ensure they meet these new demands.
HERZBLUAT supports your company in mastering these challenges and improving its sustainability performance.
Are you ready for the new challenges?
If you would like to learn more about how HERZBLUAT can support you in overcoming these challenges, please contact us today.
We look forward to working with you to create a more sustainable and successful future for your business.
[*1]: Duty to provide information on sustainability aspects
[*2]: Sustainable Development Goals
[*4]: SDGs (Sustainable Development Goals and Indicators)
[*5]: 17 Sustainable Development Goals
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