Invitation to the "ESG Mazars - online meet" with Zuzana Rozsívalová", 19. 10. 2023
In a due and timely manner, non-financial reporting can positively affect the life and success of business companies. Those who are alert and will be prepared before the competition have a great chance to succeed better in the world of business and retail chains or to better impress banks, investors or potential job seekers," says Zuzana Rozsívalová, ESG Manager.
ESG
An abbreviation we see an awful lot of lately. Three letters that we will see more and more. What is behind them? Three pillars of (not only) non-financial sustainability reporting:
E = Environmental
The environment and the company’s impact on it. The main topics are climate change, pollution and waste, recycling, principles of a circular economy and biodiversity.
S = Social
Social areas, which include human rights, employee care, equal opportunities, education, consumer protection, but also the security of personal data
G = Governance
Management and governance, corporate culture, independence of management, business ethics and code of ethics, risk management, internal control and audit or shareholder rights.
Why start reporting now?
Non-financial reporting will be mandatory for all large enterprises.
In the very near future, the obligation to report will also fall on small and medium-sized companies.
Many large companies are already demanding non-financial reporting from their suppliers.
Banks and investors are increasingly basing their decisions for granting credit and investments by processing non-financial reporting on the part of applicants.
Surveys show that employees are increasingly interested in where they work, the corporate culture in the workplace, and how their employer affects their surroundings and the planet.
The complexity of non-financial reporting can surprise businesses. Without thorough preparation, reporting at the last minute can become a nightmare with negative impacts on the company’s name or competitiveness.
Financial support from the European Union – sustainability projects are one of the areas for which the European Union has allocated a large amount of funds and envisages supporting them in the future, whether it is through advantageous loans or, for example, subsidies through the Operational Programme Technology and Application for Competitiveness.
Join "ESG Mazars - online meet" with Zuzana Rozsívalová, 19 October 2023, 2:00 PM
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European Union Regulation
In November 2022, the Corporate Sustainability Reporting Directive (CSRD) was approved by the European Parliament and on 5 January 2023 it came into force. The main objective is to make the widest possible range of companies publish relevant information on the risks, opportunities and impacts of their activities on the environment.
Who is mandatory in the CSRD?
In 2025, companies already subject to the non-financial reporting obligation (the NFRD from 2014) must publish a report for the fiscal year 2024 under the new CSRD rules. In principle, these are large companies that have more than 500 employees, publicly traded companies, banks and insurance companies.
In 2026, companies that meet at least 2 of the following criteria will have to publish a non-financial report for 2025:
- more than 250 employees
- turnover of EUR 40 million and above
- balance sheet total of EUR 20 million and above
In 2027, all listed SMEs that meet at least 2 of the following criteria will have to publish a non-financial report for 2026:
- average number of employees greater than 10
- turnover above EUR 40 million
- balance sheet total above EUR 20 million
Who will the CSRD affect indirectly?
Suppliers – companies that are required to report directly will pass these requirements on to their suppliers. Thus, almost no entity will be able to avoid reporting in the area of ESG.
Applicants for funding – each bank and investor already assesses how responsibly the applicants for loans or other financing methods behave. Ignoring ESG standards will lead to an increase in interest rates or directly to a refusal to provide funding.
Are you acting responsibly?
An emphasis on non-financial aspects of a business shows that a company takes its social and environmental responsibility seriously. Companies that orient themselves quickly in the area of ESG can increase the trust of customers, investment partners and the public. Understanding and improving processes in the company can lead to the more efficient use of resources and an increase in productivity, which has a positive impact on the company’s management. Non-financial reporting is not only a duty, but also a strategic tool to maintain market position in an increasingly dynamic environment.
If you are interested in more information, please contact us.
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