CSRD scoping

ESG talks: important issues in ESG reporting

A lot is happening in the area of ESG regulations. For example, the Corporate Sustainability Reporting Directive (CSRD) will come into effect for large listed companies from the financial year 2024, followed by large companies in 2025. This CSRD includes a large package of requirements and rules. Therefore it will be challenging for companies to comply with these new regulations on time.

“The aim of the ESG Talks is to create awareness. As an EU company, you probably know it's time to take action. But what about companies that are part of a European group headed by a non-EU parent company? How does the CSRD apply to such companies?”

Scope of the CSRD

One of these important topics is the scope of the CSRD. In this first video, Erik Boonen and Maja Ilievska discuss a number of situations that illustrate the complexity of the regulations. Figuring out which company is in scope of the CSRD can be especially complicated for groups with multiple subsidiaries. Are the subsidiaries established within or outside the EU, and what if the parent is based in a non-EU country?

“Companies based in the EU already know that they will at one point have to deal with the CSRD. But what many people don’t realise is that even companies based outside the EU can in some cases be in scope.”

It is essential to investigate whether your company has made the right scope considerations. You don’t want to discover at the very end that your company does not comply with the regulations.

CSRD scoping is the basis

A careful assessment of the CSRD scope is where it all begins. “Once you know which companies need to comply and why, you can start looking ahead. Which stakeholders do you need to talk to, which specialists do you need to engage, what are the risks and opportunities?”