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New rules on corporate sustainability reporting: The Corporate Sustainability Reporting Directive

On 5 January 2023, the Corporate Sustainability Reporting Directive (CSRD) entered into force. This new directive modernises and strengthens the rules concerning the social and environmental information that companies have to report. A broader set of large companies, as well as listed SMEs, will now be required to report on sustainability based on ESG STANDARDS.

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ESG stands for Environmental, Social, and Governance.

Check out related definitions:

✅ Environmental:

• Climate Change: The long-term alteration of temperature and weather patterns caused by human activities, primarily through the emission of greenhouse gases.
• Biodiversity: The variety of living organisms, including plants, animals, and microorganisms, in a given ecosystem or on Earth as a whole.
• Carbon Footprint: The total amount of greenhouse gas emissions, expressed in CO2 equivalent, generated by an individual, organization, product, or activity.
• Renewable Energy: Energy derived from natural resources that are replenished at a faster rate than they are consumed, such as solar, wind, hydro, and geothermal energy.

✅ Social:

• Diversity and Inclusion: The practice of creating a workplace or society that values and includes individuals from diverse backgrounds, experiences, and perspectives.
• Human Rights: Basic rights and freedoms to which all individuals are entitled, regardless of their nationality, race, gender, or other characteristics.
• Labor Standards: Guidelines and regulations that protect workers’ rights, including fair wages, safe working conditions, and the right to collective bargaining.
• Community Engagement: The process of involving and collaborating with local communities to address their needs, concerns, and aspirations.

✅ Governance:

• Corporate Governance: The system of rules, practices, and processes by which a company is directed and controlled, ensuring accountability, transparency, and ethical behavior.
• Board Diversity: The representation of individuals from diverse backgrounds, including gender, ethnicity, age, and expertise, on the board of directors.
• Shareholder Rights: The legal rights and privileges granted to shareholders, including the right to vote on company matters and receive dividends.
• Ethical Conduct: Acting in accordance with moral principles and values, and adhering to professional codes of conduct and legal standards.

If you have any questions related to ESG, email us on: office@edusmart-tc.net