From duty to opportunity: How logistics companies can benefit from the European Green Deal and CSRD
From Sonja Becker, Manager Responsibility at TALKE
As Sustainability Manager of the logistics company TALKE, I am watching the developments surrounding the European Green Deal and the Corporate Sustainability Reporting Directive (CSRD) with great interest. These ambitious plans by the European Union to become carbon neutral by 2050 and to standardize sustainability reporting have profound implications for all sectors of the economy - including the logistics industry. In a webinar hosted by the European Chemical Transport Association (ECTA) , I had the opportunity to present the following information to an interested audience of professionals. I would also like to invite you to learn more about elements of this topic and to become part of this exciting journey.
What is the European Green Deal and the CSRD?
The European Green Deal is a package of EU measures aiming to achieve a climate-neutral economy by 2050. The Green Deal defines a number of initiatives, including EU climate targets, sector targets for transport and logistics, and sustainable financial regulation. The initiative covers a wide range of policy areas, from energy supply to infrastructure, and has far-reaching implications for the transport and logistics sector. The high level of policy ambition behind these initiatives aims to position the EU as a global leader in sustainable transformation.
In terms of sustainability reporting, the EU has so far implemented the CSR Directive Implementation Act (CSR-RUG). However, from the 2024 reporting year, this will be followed by the Corporate Sustainability Reporting Directive (CSRD) , which will apply accordingly from 2025 (for the previous fiscal year) and will be introduced gradually:
While around 500 companies in Germany fell under the CSR RUG, the CSRD affects at least 15,000 German companies and around 50,000 within the EU. Companies with more than 250 employees, regardless of capital market orientation, are affected provided they meet two of three criteria:
The CSRD also includes data on the EU taxonomy of sustainable activities and requires significantly more quantitative data. This data will be collected according to a new reporting standard (ESRS) and audited by an external auditor. Also planned is the introduction of a digital taxonomy for machine-readable reports with a central transparency register.
The structure of the ESRS and its impact on companies
The structure of the ESRS was developed with a specific intention: To strike a balance between standard requirements and contextual individualization of reporting.
For the sector-agnostic requirements, the ESRS are divided into a total of 12 clusters covering both cross-cutting and sector-specific aspects . Here are the different clusters and their subdivisions:
Each cluster is additionally divided into further subtopics and subcategories.
A central component of reporting is the materiality analysis. It is a comprehensive, mandatory management and strategy process for identifying the clusters relevant to the company. While ESRS 2 (General Disclosures), for example, is a mandatory standard that applies to all companies, the other clusters are added on an individual company basis in accordance with the materiality analysis - with the involvement of relevant stakeholders.?
The subsequent reporting is based on the principle of double materiality:
There is no question: The European Green Deal and the CSRD will have a major impact on many companies - not just the logistics industry - and will require significant adjustments. It sets ambitious targets to reduce greenhouse gas emissions in the EU to zero by 2050, and these targets have a direct impact on the logistics industry. At the same time, the CSRD leads to more comprehensive and standardized sustainability reporting.
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Tips and strategies (not only) for logistics companies
Given the profound changes brought about by the European Green Deal and CSRD, it is important that logistics companies prepare now for the challenges ahead.
A key first step is to identify a core team for ESG reporting. This team will play a critical role in clarifying additional responsibilities for data related to CSRD and taxonomy metrics and defining timelines and escalation paths for late data submissions should they become necessary. It is also critical that data capture and release be verifiable, which will require collaboration with the auditor to ensure a smooth audit capability under time pressure.
In parallel, top management must be sensitized and internal competence building around sustainability reporting and taxonomy must be carried out. In this context, the development of a CSRD-compliant format for the annual report will also be an essential task. The management report should contain regulatory-compliant sustainability content, for which clear responsibilities for editorial work must be defined. Taxonomy mapping, i.e., developing the three taxonomy metrics in collaboration with the auditor, is also one of the key challenges. Existing environmental management systems such as ISO 14001, EMAS and Co. can provide a solid basis for the transition to CSRD compliance. They are a valid basis for policies, objectives and processes on environmental aspects and already include materiality thinking for environmental aspects.
However, an expansion to include the areas of strategy, social and governance is required here. In addition, responsibilities for data and management processes must be defined and further guidelines on social and governance issues must be established. Sustainability management should be gradually expanded to include CSRD aspects, and consultation with environmental auditors should be sought. These can also review CSRD management reports and can be a useful alternative to the auditor.
The challenges are many and range from scope to the level of requirements, to the timing of finalization of requirements, to auditor review and publication date.
Conclusion: How logistics companies can benefit from CSRD
Preparing for the European Green Deal and implementing the CSRD are not small tasks, but they are necessary and ultimately rewarding ones. Logistics companies can benefit from the CSRD in several ways:
1. Improved sustainability performance and trust: CSRD promotes more comprehensive reporting of sustainability issues along the entire value chain. Logistics companies can improve their sustainability performance, strengthen their ESG metrics and thus increase their trust among all stakeholders through detailed collection and disclosure of environmental, social and governance data.
2. Stronger customer loyalty: More and more companies value sustainable supply chains and prefer logistics partners that actively support their sustainability goals. By meeting CSRD requirements, logistics companies can strengthen their sustainability profile and convince potential customers of their responsible business practices.
3. Access to financing and investors: Sustainability is playing an increasingly important role in investment decisions. By meeting CSRD requirements and transparent reporting, logistics companies can lower their risk profile and become more attractive to sustainability-oriented investors and financing opportunities.
4. Improved risk management: CSRD requires a detailed assessment of risks and opportunities related to sustainability aspects. Logistics companies can use this analysis to identify potential risks at an early stage and take appropriate measures to minimize them. This improves risk management and promotes long-term corporate stability.
5. Innovation and efficiency increases: CSRD can serve as a driver for innovation as companies look for new approaches and solutions to achieve their sustainability goals. Logistics companies that address CSRD requirements early on can develop innovative solutions and optimize processes to increase resource efficiency and reduce costs.
However, it is important to emphasize that the CSRD is a transparency standard, not a performance standard. Sustainability is a marathon and gaps are normal and inevitable. Not all content needs to be available in the first year. It gets easier over time, and no one is alone on this journey! Sharing ideas and best practices on how the logistics industry can respond to these challenges will be critical to ensure successful implementation.
About the Author:
Sonja Becker joined TALKE in June 2022 as Manager Responsibility. She is responsible for Group-wide sustainability management and, among other things, is developing a strategy for implementing the European Green Deal and the Corporate Sustainability Reporting Directive (CSRD). Her tasks include implementing measures, setting up structures and processes, and communication and reporting. Prior to joining TALKE, Sonja Becker was Director Corporate Reputation at a global strategy and consulting firm focusing on sustainability issues. Her diverse experience and expertise make her a sought-after voice in the field of sustainability and logistics.