Latest developments on CSR: a new spring for Europe
2023-07-10GoldenBeeGoldenBee0
Currently, the world is accelerating the process of sustainable recovery and transformational development. Corporate social responsibility (CSR), has also shown a global trend of shifting from voluntary to mandatory in recent years.
At the 18th International CSR Forum held on June 8-9, 2023, Lorena Sorrentino, Manager of Markets and EU Team of CSR Europe, shared the latest developments on CSR and sustainability by European governments and enterprises, and the challenges and opportunities that these trends bring to Chinese enterprises.
At the 18th International CSR Forum held on June 8-9, 2023, Lorena Sorrentino, Manager of Markets and EU Team of CSR Europe, shared the latest developments on CSR and sustainability by European governments and enterprises, and the challenges and opportunities that these trends bring to Chinese enterprises.
The following are the main contents of her speech:
CSR Europe and GoldenBee has started collaboration since early 2000. We are very grateful to GoldenBee for its contribution to the collaboration between Chinese and European enterprises, and the promotion of CSR over the years.
Europe is a region with high mobility. European citizens often work and live in other countries, which has formed its diverse culture and ethnic system, and made it even more special for the European Union (EU) to build CSR internally.
In recent years, we have seen many new changes in Europe, which can be said to usher in a new spring of CSR. For Chinese companies, this is an opportunity to expand their business in the international market in a more compliant way, and contribute to the global CSR development.
Therefore, we must strengthen corporate sustainability and cooperation within the industry, and become not only the business leader but an international model of CSR. We hope to help companies realize business transformation and business change, and to help them better respond to internal and external challenges, including the economy, technology, changing demographics, and other aspects.
In 2019, Europe introduced the European Green Deal to ensure that Europe can achieve climate neutrality by 2050, which is a significant opportunity for transformation. Under the Green Deal, Europe has created action plans on several aspects including climate action, circular economy action plan, sustainable finance and reporting, sustainable supply chains, skills and social programs.
In addition, Europe has developed a large number of new legislations in a very short period of time and has achieved several milestones in this regard. Many of them will begin implementation at the enterprise level in 2025 and achieve wider application in 2028.
Among them, I would like to highlight the Corporate Sustainability Reporting Directive (CSRD) as it is an extension of the Non-financial Reporting Directive (NFRD), the European sustainability reporting directive that came into force in 2018.
Around 5,000 companies have already adopted the new directive which contains new requirements for enterprises to be more proactive in practicing sustainable development.
For example, the new directive establishes a relatively complete disclosure framework, requiring enterprises to disclose more comprehensive and accurate information and data to enhance the credibility of their reports. Furthermore, it put forward general requirements on the principle of double materiality, digitization of sustainability reporting, information disclosure in accordance with the Mandatory European Sustainability Reporting Standards (ESRS) and the mechanism of assurance of sustainability reporting.
In this regard, we have conducted a series of studies and indicator analyses to determine whether enterprises have met the requirements and standards of sustainable development. Enterprises can also formulate their own internal standards based on these basic standards.
These actions by the EU greatly indicate that the corporate headquarters have to constantly evolve, focusing not only on sustainability within the enterprise or group, but also on the sustainability throughout the whole supply chain or value chain.
This trend is also reflected in anther directive, the Corporate Sustainability Due Diligence Directive (CSDDD), recently adopted by the European Union, which requires companies with business in Europe to demonstrate sustainability throughout the business life cycle.
As a further example, the EU Taxonomy is crucial tool for the EU sustainable finance agenda. It identifies which business operations are environmentally sustainable based on multi-dimensional criteria.
These new sustainability-related directives and regulations are not implemented in isolation. In particular, CSRD, CSDDD, and EU Taxonomy, will more or less interact with each other in their implementation.
Of course, no company can be fully prepared for these changes. Adaptions in aspects of internal management, strategies, business development, tools, etc., should be considered. We need to take this process as an opportunity for business improvement and innovation, not as a pressure or a burden.
This article is based on Lorena Sorrentino's speech at the 18th International CSR Forum.
CSR Europe and GoldenBee has started collaboration since early 2000. We are very grateful to GoldenBee for its contribution to the collaboration between Chinese and European enterprises, and the promotion of CSR over the years.
Europe is a region with high mobility. European citizens often work and live in other countries, which has formed its diverse culture and ethnic system, and made it even more special for the European Union (EU) to build CSR internally.
In recent years, we have seen many new changes in Europe, which can be said to usher in a new spring of CSR. For Chinese companies, this is an opportunity to expand their business in the international market in a more compliant way, and contribute to the global CSR development.
Therefore, we must strengthen corporate sustainability and cooperation within the industry, and become not only the business leader but an international model of CSR. We hope to help companies realize business transformation and business change, and to help them better respond to internal and external challenges, including the economy, technology, changing demographics, and other aspects.
In 2019, Europe introduced the European Green Deal to ensure that Europe can achieve climate neutrality by 2050, which is a significant opportunity for transformation. Under the Green Deal, Europe has created action plans on several aspects including climate action, circular economy action plan, sustainable finance and reporting, sustainable supply chains, skills and social programs.
In addition, Europe has developed a large number of new legislations in a very short period of time and has achieved several milestones in this regard. Many of them will begin implementation at the enterprise level in 2025 and achieve wider application in 2028.
Among them, I would like to highlight the Corporate Sustainability Reporting Directive (CSRD) as it is an extension of the Non-financial Reporting Directive (NFRD), the European sustainability reporting directive that came into force in 2018.
Around 5,000 companies have already adopted the new directive which contains new requirements for enterprises to be more proactive in practicing sustainable development.
For example, the new directive establishes a relatively complete disclosure framework, requiring enterprises to disclose more comprehensive and accurate information and data to enhance the credibility of their reports. Furthermore, it put forward general requirements on the principle of double materiality, digitization of sustainability reporting, information disclosure in accordance with the Mandatory European Sustainability Reporting Standards (ESRS) and the mechanism of assurance of sustainability reporting.
In this regard, we have conducted a series of studies and indicator analyses to determine whether enterprises have met the requirements and standards of sustainable development. Enterprises can also formulate their own internal standards based on these basic standards.
These actions by the EU greatly indicate that the corporate headquarters have to constantly evolve, focusing not only on sustainability within the enterprise or group, but also on the sustainability throughout the whole supply chain or value chain.
This trend is also reflected in anther directive, the Corporate Sustainability Due Diligence Directive (CSDDD), recently adopted by the European Union, which requires companies with business in Europe to demonstrate sustainability throughout the business life cycle.
As a further example, the EU Taxonomy is crucial tool for the EU sustainable finance agenda. It identifies which business operations are environmentally sustainable based on multi-dimensional criteria.
These new sustainability-related directives and regulations are not implemented in isolation. In particular, CSRD, CSDDD, and EU Taxonomy, will more or less interact with each other in their implementation.
Of course, no company can be fully prepared for these changes. Adaptions in aspects of internal management, strategies, business development, tools, etc., should be considered. We need to take this process as an opportunity for business improvement and innovation, not as a pressure or a burden.
This article is based on Lorena Sorrentino's speech at the 18th International CSR Forum.
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