ESG Compliance, Governance & Assurance

What gets measured, gets managed.

Peter Drucker

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.

Are you aware of the end-to-end scope of reporting requirements that will ultimately sit under Finance?

European Union

It is anticipated that around 42,500 companies will be impacted.

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

Other EU companies meeting the 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.

Depending on a specific (and subject to disclosure) materiality assessment, companies will have to disclose information on the following:

  • Climate Change
  • Pollution
  • Water & Marine Resources
  • Biodiversity & Eco-Systems
  • Resource Use & Circular Economy
  • Own Workforce
  • Workers in the Value Chain
  • Affected Communities
  • Consumers & End-Users
  • Business Conduct

Overall, 96 European Sustainability Reporting Standards with disclosure and reporting requirements are being introduced. The audit requirements will initially be on a limited, then reasonable assurance basis.

Outside of the EU, other regulations are in place

United States

The US Securities & Exchange Commission (SEC) has adopted rules to enhance and standardise climate-related disclosures by public companies and in public offerings.

Among the things the final rules require disclosure of are:

  • material climate-related risks
  • activities to mitigate or adapt to such risks
  • information about the board of directors’ oversight and management’s role in managing material climate-related risks
  • information on any climate-related targets or goals that are material
IFRS

The ISSB issued the S1 and S2 disclosures in 2023. They cover climate-related processes and controls, risks and opportunities and metrics and targets to monitor performance.

UK

The Financial Reporting Council (FRC) has removed references to ESG in a new version of the UK Corporate Governance Code, which comes into force in 2025. However, given that any material EU subsidiaries must meet CSRD requirements, many UK-listed companies may still choose to follow those standards.

Is your company ready to meet these regulatory requirements?

Do you have the resources, time and expertise available?

Would you like to learn more about what it means for your organisation and what ESG readiness steps you should take now?

Then, why not set up a complimentary briefing with Loughridge Transformations’ Principal Consultant?

Arrange an ESG Briefing


Governance & Assurance

We use our in-house governance and assurance model, inspired by COSO, when reviewing any organisation’s control framework, including all or any of the pillars—business objectives, financial and climate change reporting, and compliance.

We excel in delivering solutions for our clients, whether at the client site or virtually, individually, or in teams. Working across multiple geographies, cultures, and time zones is second nature to the experienced consultants at Loughridge Transformations. They are experts in delivering all services in SOx (SEC), EU, UK and other regulatory environments.

Our recent blogs may give some more insight into Loughridge Transformations‘ approach: