SGS Welcomes the EU’s New CSRD Agreement

SGS welcomes Tuesday’s news of a provisional agreement between the EU and European Parliament on new reporting rules under the Corporate Sustainability Reporting Directive (CSRD). The directive will hold companies more accountable for their impact on environmental, social and governance (ESG) factors.

The proposed CSRD sets common reporting rules for non-financial data for the first time. It requires the provision of information on companies’ supply chains, as well as impact on ecosystems, climate change, deforestation and local populations, as well as governance. Additionally, it will address shortcomings in the current Non-financial Reporting Directive (NFRD) 2014/95/EU.

Under the proposed Directive, starting 2024, EU companies with 500 or more employees, non-European companies with net turnover of EUR 150 million and one subsidiary or branch within the EU, as well as listed SMEs will need to report on their non-financial activities. Importantly the agreement stipulates that the information companies provide will need to be verified by independent auditors or certifiers. As an industry, we have worked together in collaboration with the TIC Council to make sure that there is a good level of competence available to support our customers and enable the directive to make a positive impact.

Hanane Taidi, Director General of the TIC Council, commented: “The TIC Council is ready to play its part in the quality infrastructure system that will facilitate the implementation of the directive, building trust and ensuring transparency.”     

Frankie Ng, CEO of SGS, commented: “This new directive will help to create a level playing field for sustainability reporting for companies operating within and outside the EU. To achieve changes in behavior that can make an impact, the reporting of the effect that company activities have on the planet and people requires a consistent approach. SGS has a long history of sustainability excellence and the CSRD provides a clear and decisive foundation for helping the TIC industry to support its customers around the globe on their sustainability journeys in the coming years.”

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