Ready for CSRD Compliance?
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For 25 years ITS has supplied IT staff and technology solutions to over 100 law firms
The EU’s Corporate Sustainability Reporting Directive (CSRD) represents a?significant milestone, by embedding sustainability and assurance within the annual reporting process. Phased in from the start of 2024, the CSRD is aimed at improving the quality, consistency, and comparability of the environmental, social, and governance (ESG) information that businesses report.
While the UK is not directly within the scope of the CSRD, UK-headquartered firms with EU subsidiaries that satisfy the threshold criteria, may fall within its scope.
From a technology perspective, the CSRD affects IT purchasing and IT operations in several ways:
IT Purchasing: The CSRD will influence the IT purchasing decisions of firms that need to comply with the CSRD or that want to align with the EU’s sustainability policies. For example, firms may prefer to buy IT products and services that have a lower environmental impact, such as energy-efficient devices, cloud-based solutions, or circular economy models.
Supply Chain Integrity: Firms should integrate sustainability into their procurement processes and consider the ESG performance and sustainable practices of their IT suppliers and vendors. In fact,?it will be essential to collect and share information about supplier sustainability, and this will become a key factor in supplier selection.
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IT Operations: The CSRD will affect the IT operations of firms that need to report on their ESG performance and impact, as well as those that use the ESG information of other companies for their own purposes. For example, they may need to collect, process, and disclose more data on their IT-related ESG issues, such as carbon emissions, data security, digital inclusion, or innovation. Firms may also need to ensure the quality, reliability, and comparability of their ESG data, and use digital tools and standards, such as the digital taxonomy or the XBRL format.
If your firm or its subsidiaries fall within the scope of the CSRD, there is no doubt that it will significantly affect IT purchasing and IT operations, depending on the specific context and situation.
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