Friday 18 October, Dublin – A significant shift in mindset is required for companies to prioritise sustainability reporting with the same diligence as financial reporting. This was a central theme at the event “CSRD Unpacked: The Practicalities of Implementation and What Comes Next,” hosted by Grant Thornton Ireland in partnership with European Movement Ireland.
During her keynote address, Mairead McGuinness, European Commissioner for Financial Services, Financial Stability, and Capital Markets Union, underscored the importance of the Corporate Sustainability Reporting Directive (CSRD):
“The CSRD is a response to society’s changing needs and priorities. Investors are looking increasingly towards sustainable investments, and consumers too are interested in the impacts companies have on the environment. Information that is reliable and comparable across companies is key as it enables investors to channel money to sustainable activities – helping us make real progress on the transition to a sustainable economy and society. The challenge is to make sustainability reporting as an accepted part of business activity just as financial reporting is today.”
From 1 January 2025, large companies in Ireland with over 250 employees will be required to comply with the CSRD. This builds on the 1 January 2024 deadline for public interest entities with over 500 employees. Listed small to medium enterprises must begin reporting by 2026, with an opt-out option until 2028. This event comes at a time when large public-interest entities are set to publish their first sustainability statements in 2025, covering the 2024 financial year.
Janice Daly, Partner and Sustainability Lead at Grant Thornton, commented on the need for businesses to shift their view of the directive, added: “CSRD will fundamentally bring about a mindset shift in business attitudes to sustainability, with the expectation to disclose sustainability information with the same rigour as financial information is reported. Rather than viewing the directive as another regulatory burden, it’s important that companies see the commercial opportunities for businesses in terms of brand differentiation, resilience of their business model, access to new opportunities and new markets.”
She continued: “Companies who act now to build up their knowledge and process over time will facilitate a smoother transition and minimise implementation challenges.”
The event emphasised practical steps for businesses to navigate these new requirements. Speakers stressed the challenges of implementing the directive, particularly in building the necessary skills and capacity, but also highlighted the potential benefits, including uncovering new business opportunities and managing risk more effectively.
Noelle O Connell, CEO at European Movement Ireland, spoke on the societal and business benefits of the CSRD. “The CSRD marks a critical step towards promoting sustainable business practices and ensures that companies are delivering on the EU’s ambitious climate goals, including the European Green Deal. The CSRD is a strong tool for companies to align with societal expectations and drive meaningful change for the betterment of our shared planet.
Companies that adopt proactive sustainability measures will be better positioned to attract green investment, increase consumer trust, and gain a competitive advantage in the evolving global marketplace.”
The CSRD is part of the European Union’s broader strategy to improve corporate transparency on sustainability issues. It aims to provide investors and stakeholders with reliable and comparable ESG data to make informed decisions, ensuring companies contribute to the EU’s environmental and social goals. The directive will also assist the European Union in its goal to become the first climate neutral continent by 2050.