Praise for the Corporate Sustainability Reporting Directive
The Global Business Travel Association (GBTA), the voice of the global business travel industry, welcomes the adoption of the EU Corporate Sustainability Reporting Directive (CSRD) to create new, detailed sustainability reporting requirements and significantly expand the number of European and non-European companies subject to the European sustainability reporting framework.
The CSRD will replace the existing Non-Financial Reporting Directive (NFRD) and apply to all large companies in the EU, both public and private, affecting approximately 50,000 companies compared to the 11,700 companies previously affected. Companies with operations outside the EU that have net sales of €150 million in the EU and at least one subsidiary or branch in the EU will also be required to submit a sustainability report.
New reporting requirements will include:
• Reporting on social and governance issues (e.g., respect for labour and human rights, anti-corruption and anti-bribery, corporate governance, and diversity and inclusion) in addition to environmental and climate change reporting.
• Disclosing information about a company’s sustainability due diligence processes, as well as actual and potential negative impacts of a company’s operations and value chain.
• Reports on Scope 3 emissions, including Scope 3.6 emissions from business travel.
The new CSRD will be phased into use from 2024:
• From January 1st 2024: large public interest entities (with more than 500 employees) already subject to the Non-Financial Reporting Directive, with reports due in 2025;
• From January 1st 2025: large companies not currently subject to the Non-Financial Reporting Directive (with more than 250 employees and/or sales of €40 million and/or total assets of €20 million), with reports due in 2026;
• From January 1st 2026: listed small and medium-sized enterprises (SMEs) and other companies whose reports are due in 2027. SMEs may be exempt from the requirement until 2028.
An independent auditor or certifier will be required to ensure that companies comply with reporting rules and certification standards.
GBTA supports the CSRD and the efforts to increase both the scope of sustainability reporting and companies required to submit a report. The expanded level of reporting will enable investors and procurement professionals to benchmark new suppliers not only on financial metrics, but also on a supplier’s purpose, ESG policy and sustainability credentials.
The outcome of the CountEmissionsEU proposal supported by GBTA, will be crucial in providing a harmonised methodology to calculate transport-related emissions in the EU, for reporting on scope 3 emissions as required by the CSDR, paving the way for effective decarbonisation of the business travel sector.
About GBTA
The Global Business Travel Association (GBTA) is the world’s largest business travel and meetings trade organisation, headquartered in the Washington, D.C. area with operations across six continents. GBTA’s members manage more than US$345 billion of global business travel and meetings expenditures annually.