CSRD Webinar: A Step Towards a More Sustainable Future for Members of Dutch Associations

CSRD Webinar: A Step Towards a More Sustainable Future for Members of Dutch Associations

During an interactive webinar on the Corporate Sustainability Reporting Directive (CSRD) held on July 5th, specifically organized for Dutch associations that are clients of Lejeune Association Management, the key aspects of CSRD and its implications for businesses were thoroughly discussed. The webinar provided valuable insights and tools for participants to prepare for the reporting requirements of CSRD and contribute to a more sustainable future.

The webinar, organized in collaboration with the CSRD Academy, was led by Lennert Vermaat, Association Advisor at Lejeune. Michel Scholte from True Price and the CSRD Academy, along with Renier de Adelhart Toorop, a core instructor and researcher at the CSRD Academy, delivered the content of the webinar. Michel Scholte also spoke at the Lejeune Sector Associations Day under the title 'From Sustainable Thinking to ACTION' held on March 30th, from which this webinar was a first follow-up.

CSRD in a Pressure Cooker

Scholte began with a concise introduction to CSRD, the Corporate Sustainability Reporting Directive, which will come into effect on January 1, 2025. He emphasized that the goal of CSRD is to transform social, human, and natural capital into financial capital. This aligns with the reporting requirements currently applied in Europe in these areas.

Next, De Adelhart Toorop discussed the reporting process. He explained that the current regulations are voluntary, and companies can choose which topics to report on, making it difficult to compare companies. He pointed out that this will change with the new CSRD directive, which establishes ten subjects that apply to everyone, in a digital format that enables one-to-one comparisons.

Scope

Scholte stressed that reporting on sustainability aspects is already standard for companies that must comply with the Non-Financial Reporting Directive (NFRD). CSRD will replace this from 2025 onwards. Starting from 2026, CSRD will also apply to all companies that meet at least two of the three criteria: more than 250 employees; turnover exceeding €40 million; assets exceeding €20 million. In the future, sustainability reporting will play an increasingly important role for other businesses as well. This encompasses all three aspects of sustainability: Environmental, Social, and Governance (ESG). As stated, CSRD is based on 10 topics: 5 in the field of environmental care, 4 in the field of social policy, and 1 in the field of good governance. These will be documented in the so-called European Sustainability Reporting Standards (ESRS). It's worth noting that this not only involves quantitative but also qualitative measurements.

Baring it All

De Adelhart Toorop then delved into the policy objectives and outcomes of CSRD, mentioning that there are 1144 data points that can be measured. It was made clear that this process will start faster than many companies expect. Large companies will rely partly on input from their suppliers for their impact reports, so CSRD becomes relevant for small companies as well. Therefore, it's crucial to establish the right structure in a timely manner. The EU's aim with CSRD is to create more transparency. While there is no fine for organizations with low ambition in their ESG goals, if competitors can present higher ambitions and better performance to clients and investors, it will motivate less ambitious companies to improve as well, such is the idea. As a CEO loosely put it: "If you have to bare it all, you might as well look good doing it."

Where to Start?

Scholte then addressed the costs and challenges of implementing CSRD. He cautioned that the internal and external costs of such projects should not be underestimated. Almost two-thirds of the administrative costs associated with CSRD reporting relate to the 5 environmental subjects. He emphasized that data collection is a recurring activity and that it's important to approach this step-by-step, bringing the right stakeholders together and structuring the approach.

Guidance to Member Companies

Participants were advised to reach out to their clients if they aren't already asking for information. The more than 80 registrations for the webinar were seen as an indication that companies are already engaging with CSRD, and attendees were encouraged to look ahead and engage in discussions. As a next step, it was suggested to conduct a 'dry run' of the materiality analysis and perform a gap analysis of what still needs to be done. Participants and other member companies of associations supported by Lejeune were offered a 10% discount to participate in a one-day training program or an e-learning program at the CSRD Academy.

For more information on how businesses can best approach this, or to review the webinar, please contact Lennert Vermaat of Lejeune Association Management. This autumn, a similar webinar in English will be held for international client associations.