To enable investors to better understand the growing gap between the book value of many companies and their market value, disclosure of information on intangible assets such as intellectual, human and reputational capital, as well as information on research and development, will be required.
Through the work of EFRAG, whose initial work was open for consultation until 8 August 2022, general and sectoral sustainability standards will be determined with quantified targets for the short, medium and long term. SMEs will be provided with standards commensurate with their capabilities and resources.
- For environmental factors, companies will need to specify their strategy for dealing with climate change and provide data aligned with the Taxonomy.
- On the subject of social factors, companies will have to publish information on the promotion of equal opportunities or the respect of human and fundamental rights.
- Finally, in the area of governance, the role of management in combating corruption, integrating sustainability issues into decision-making, and engaging with external stakeholders will be clarified.
The desire to standardise and make sustainability reporting more accessible is reflected firstly by the obligation for companies to publish all financial and non-financial information in a single management report. The aim is to maximise the overall performance of companies by means of steering that takes better account of the cause and effect relationships between financial and non-financial information.
In addition, the CSRD plans to digitise corporate sustainability information in the same way as financial information through a Europe-wide digital access platform. Digital tagging of key data will be required so that it can be compared and analysed by stakeholders.
With the CSRD project, the exposure to reputational risk (greenwashing, lack of transparency) and loss of social license is multiplied and becomes European or even international.