CORPORATE SUSTAINABILITY REPORTING DIRECTIVE (CSRD): A GUIDE FOR REPORTING ON SUSTAINABILITY IN THE EU MARKET

Ernani Contipelli

doi:10.14210/nej.v29n3.p843-865

Authors

Ernani Contipelli Webster University https://orcid.org/0000-0003-3506-9326

DOI:

https://doi.org/10.14210/nej.v29n3.p843-865

Keywords:

Sustainability Reporting, Corporate Sustainability, ESG Factors, European Green Deal

Abstract

Contextualization: The European Union is developing new regulations as part of the EU Green Deal to guide businesses towards sustainability and improved compliance. One key regulation is the Corporate Sustainability Reporting Directive (CSRD), which aims to increase transparency and hold companies accountable for their sustainability practices, providing stakeholders with information on their approach to sustainability issues, including environmental, social, and governance (ESG) factors and double materiality.

Objectives: The article employs the inductive method and conducts a bibliographic review and exploratory analysis of the main concepts and regulations related to corporate sustainability and sustainability reporting.

Method: The article then delves into key ideas related to sustainability reporting, focusing on ESG factors, double materiality assessment, impact measurement, and greenwashing. It concludes by analyzing the most important elements of the CSRD and the European Sustainability Reporting Standards (ESRS).

Results: The CSRD attempts to create a roadmap for a significant contribution to sustainability by broaden[ing] the range of organizations subject to regulation, establishing consistent reporting criteria, and improving sustainability disclosures' overall quality and comparability to enhance transparency and accountability and coordinating efforts.

Downloads

Download data is not yet available.

Author Biography

Ernani Contipelli, Webster University

Professor at the Webster University - Campus Leiden and Tashkent, the Central American Institute of Public Administration, United International Business Schools (UIBS), and Editor-in-Chief at Connections for Sustainability Journal. He holds two post-doctorate degrees in Comparative Politics and a Ph.D. in Public Law. He has experience in the academic field in different countries and various publications on his research areas of interest: Sustainability, Circular Economy and International Cooperation.

References

CASHORE, B.; AULD, G.; NEWSOM, D. Governing through markets: Forest certification and the emergence of non-state authority. New Haven: Yale University Press, 2004.

CHESHIRE, D. The Handbook to Building a Circular Economy. London: RIBA Publishing, 2021.

EUROPEAN COMMISSION. EU Taxonomy for Sustainable Activities. Disponível em: https://finance.ec.europe/sustainable-finance/tools-and-standards/eu-taxonomy-sustainable-activities-en.

EUROPEAN COMMISSION. Green Claims. 2022. Disponível em: https://environment.ec.europa.eu/topics/circular-economy/green-claims_en.

EUROPEAN COMMISSION. The European Green Deal. 2023. Disponível em: https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-greendeal_en.

EUROPEAN COMMISSION. The European Green Deal. Disponível em: https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-greendeal_en.

EUROPEAN FINANCIAL REPORTING ADVISORY GROUP – EFRAG. European Sustainability Reporting Standards (ESRS). Disponível em: https://www.efrag.org/.

GILLAN, S. L.; KOCH, A.; STARKS, L. T. Firms and Social Responsibility: A Review of ESG and CSR Research in Corporate Finance. Journal of Corporate Finance, v. 66, 2021.

GIMENEZ, C.; SIERRA, V.; RODON, J. Sustainable Operations: Their Impact on the Triple Bottom Line. International Journal of Production Economics, v. 140, n. 1, p. 149-159, 2012.

HAYES, A. What is Greenwashing? How It Works, Examples, and Statistics. Investopedia, 2024. Disponível em: https://www.investopedia.com/terms/g/greenwashing.asp.

KAPTEIN, M.; VAN TULDER, R. Toward Effective Stakeholder Dialogue. Business and Society Review, v. 108, n. 2, p. 203-224, 2003.

MARX, A.; WOUTERS, J. Is everybody on board? Voluntary sustainability standards and green restructuring. Development (Basingstoke), 2015. Disponível em: https://doi.org/10.1057/s41301-016-0051-z.

MEADOWS, D. H. et al. The Limits to Growth: A Report for the Club of Rome’s Project on the Predicament of Mankind. New York: Universe Books, 1972.

MOFFATT, I. Sustainable Development: Principles, Analysis and Policies. London: Parthenon, 1996.

MOHAMMAD, W. M. W.; WASIUZZAMAN, S. Environmental, Social and Governance (ESG) disclosure, competitive advantage, and performance of firms in Malaysia. Cleaner Environmental Systems, v. 2, 2021.

SDG COMPASS. SDG Compass: The Guide for Business Action on the SDGs. SDG Compass, 2015. Disponível em: https://sdgcompass.org/.

STEVENSON, N.; TAYLOR, M.; LYON, F.; RIGBY, M. Social Impact Measurement (SIM): Experiencing and future directions for the third sector organisations in the East of England. Bradford: Social Enterprise East of England, 2010.

UNFSS. 1st Flagship Report of the United Nations Forum on Sustainability Standards (UNFSS). 2013. Disponível em: https://unfss.org/home/flagship-publication/.

WORLD BANK. World Development Report 2003: Sustainable Development in a Dynamic World--Transforming Institutions, Growth, and Quality of Life. Disponível em: http://hdl.handle.net/10986/5985.