CSRD is here to stay: how will brands comply to the new transparency reporting rules?
Attention fellow (responsible) companies, time’s up. EU’s most extensive sustainability reporting directive (CSRD) demands brands to disclose information about their environmental, social, and governance (ESG) impacts. But, think of it this way, with the new traceability requirements, you’ll be able to trace your raw materials back to their origins and ensure that they were obtained under fair and ethical conditions. And with the impact labels, you’ll be able to proudly display your sustainability achievements for all to see.
The European Union recently implemented new reporting rules, also known as Non-Financial Reporting Directive, for companies that are designed to increase transparency and accountability, as well as increase traceability in the supply chain. All EU companies are now required to disclose information about the sourcing of their raw materials and the conditions under which they are obtained through the use of impact labels. This includes information about the environmental and social impacts of these materials, as well as any potential human rights abuses. This increased transparency will help companies identify and address potential risks in their supply chain, and improve their overall sustainability performance.
Considering that the EU’s most extensive sustainability reporting directive CSRD will enter into effect in January 2025 and will cover the fiscal year 2024, it’s important for companies to accelerate their processes in order to become CSRD complacent.
In order to comply with these requirements, brands must conduct a thorough assessment of their products to understand their environmental and social impacts. Brands must also ensure that the information provided on the impact labels is accurate and verifiable, and must be able to provide evidence to support the claims made on the label. This will require companies to develop robust systems for tracking and reporting the environmental and social impacts of their products throughout the supply chain.
Brands must also develop a strategy for communicating this information to consumers through the use of impact labels.
THESE BRANDS ARE AMONG THE FIRST TO IMPLEMENT IMPACT LABELS
JUNK PLASTIC REHAB
JUNK PLASTIC REHAB brought their supply chain of all their products on their website where the brand displays its transparency on every PDP, after going through a 3 steps process.
Copenhagen Cartel brought their supply chain of some of their products on their website where the brand displays its transparency on every PDP, after going through a 3 steps process.
HOW THESE BRANDS COLLECTED THE DATA NEEDED THROUGH THE IMPACT DASHBOARD
📖 What’s Renoon? A software solution for companies to store all relevant certifications and proof points related to sustainability in one place, making them manageable and available for every claim made to the outside world through the Transparency Label.
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