European companies voiced their concerns about the implementation of the ‘CSRD’ directive on extra-financial reporting, effective for large companies from January 2024 (see EUROPE 13302/21), on Wednesday 15 May, at a conference organised by the sustainable standards body Global Reporting Initiative (GRI) and MEP Pascal Durand (S&D, French). They would like the framework to be more precise and to receive help.
Le Quang Tran Van, Director of Financial Affairs at the Association française des entreprises privées (AFEP), spoke of the results of a recent survey: 60% of respondents are still trying to work out what they should declare. He pointed out that only 6 months remain for implementation, which will be “a major challenge”. He felt that businesses needed more time and a simpler framework. “Large companies are concerned about the small and medium-sized enterprises (SMEs) that are part of the value chain”, he stressed. He called on the Member States not to add additional requirements.
In his view, transition plans are one of the major issues. “We cannot deal with several definitions of transition plan, we must agree on this point”, he pleaded. The transition plans set out in the CSRD and the due diligence directive (CS3D) (see EUROPE 13314/12) overlap with other legislation, in particular the EU Emissions Trading System (ETS). This legislative patchwork lacks clarity and raises compliance concerns. “What companies need is help, not sanctions”, emphasised Mr Tran Van.
The other issue is the audit of these new standards. According to Marc Boissonnet, ESG Director at the international association representing independent certification companies, TIC Council, companies will have to implement processes and internal controls “to give confidence to the auditors that the information being assessed from samples represents a system or a board management system”, he said.
“It’s a learning curve that everyone will go through”, said Jessica Fries, Chair of the GRI Supervisory Board. “Companies are going to have to invest in the system, and then the level of understanding will change”, she added. (Original version in French by Anne Damiani)