Four Critical ESG Challenges to Think about Now!

Does your organisation operate in the EU as a subsidiary or parent entity?

Is there more than €20m on the balance sheet, a net turnover of more than €40m, and you have more than 250 employees in your organisation?

Do you answer yes to the first question and yes to two of the three parts of the second question?

Then, your organisation must likely comply with the CSRD (Corporate Sustainability Reporting Directive) regulatory framework. This significant reporting and disclosure development requires the attention of the CFO.

EU-listed companies meeting the above criteria but with over 500 employees must begin data collection in January 2024 for reporting in 2025.

Other EU companies meeting the above criteria must begin data collection in January 2025 for reporting in 2026.

SMEs can begin data collection in January 2026, although they can opt out of reporting for two years.

Non-EU parent companies must begin data collection for reporting in 2029.

While the implementation of the CSRD has been delayed by one year from the initial proposals, it’s crucial to note that the schedule remains tight. This underscores the importance of starting your compliance journey as soon as possible.

Here are four ESG challenges you, therefore, should be considering now:

Is your organisation ready to meet these ESG challenges?

Moreover, do you have the necessary resources, time and expertise available?

Would you like to understand more about the impact ESG reporting will have on your organisation for:

• Processes
• IT – AI/automation
• Governance and the Risk & Control Framework
• Roles and skills in the organisation
• Change Management

Why not set up a complimentary ESG briefing with Loughridge Transformations‘ Principal Consultant?

This briefing will help you understand the ESG challenges your organisation is facing and the readiness steps you should take now to address them effectively.

At Loughridge Transformations, we possess the governance and assurance expertise to assess and recommend improvement actions and deliver solid implementation – working with external auditors where needed. Together with our governance and audit skillset, our process and control design and deployment expertise, supported by our project and change management strengths, will ensure sustainable improvements and ESG regulatory compliance.

Furthermore, our design and deployment approach, which delivers on these ESG challenges, includes the necessary changes to the ERP, AI-enabled tools and upgrades across the Planning, Appraisal and Reporting Landscape using our Elements of Transformation model:

Our consultants have years of experience working across locations and time zones and are also experts in delivering all services remotely or onsite in SOx (SEC), EU, UK and other regulatory environments.

We welcome any discussion on the above and more, so please get in touch!

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