Are you prepared for CSRD?

Welcome back to xFarm Technologies' monthly newsletter, “Smart Farming Insights” where we’ll explore the latest trends in the AgriFoodTech sector.

Today's topic is the Corporate Sustainability Reporting Directive (Directive 2022/2464 CSRD), which is already in force for larger companies and will require also smaller companies to comply with it by 2026. What does it state? What are the implications for agri-food companies? And, finally, what can you do in order to be compliant?

The directive

CSRD is a European Union Directive requiring companies to disclose comprehensive sustainability information in a sustainability report to provide stakeholders with reliable, comparable and relevant information on environmental, social and governance (ESG) performance.

In terms of reporting timelines, the CSRD introduces a phased approach to implementation, with larger companies required to comply first. Specifically, large companies are obligated to comply with CSRD requirements starting from January 1, 2024, while small and medium-sized enterprises (SMEs) will be required to comply with the regulation starting from January 1, 2026.

Standards underpinning the CSRD: ESRS

On July 31, 2023, the Commission adopted the European Sustainability Reporting Standards (ESRS) to be used by all companies subject to the Corporate Sustainability Reporting Directive (CSRD). ?

There are 12 ESRS covering a wide range of environmental, social, and governance issues, including climate change, biodiversity, and human rights. These ESRS are mandatory for companies required to report certain sustainability information under the CSRD. ?

CSRD in agri-food supply chains?

By requiring comprehensive reporting of environmental impacts, CSRD encourages farmers and agri-food businesses to monitor and mitigate their contribution to climate change. The xFarm platform is a valuable tool in this regard, providing farmers and food companies with the support they need to monitor their activities, minimise environmental impacts, and build more resilient agricultural systems.

How to be compliant: xFarm in the context of the CSRD

xFarm is a unique tool for tracking all the information required for CSRD reporting.

• It provides a solution for calculating and monitoring emissions, offering real-time impact assessments for each agricultural activity. The platform aggregates impact data, including carbon footprint, net water use, acidification, and eutrophication, facilitating the creation of comprehensive reports for industry leaders. By digitising the supply chain, xFarm ensures accurate data collection and traceability, making calculations more precise and accessible to third parties. ?
• It provides an integrated solution to effectively address E2, E3, and E5 standards through its modules and artificial intelligence-based decision support systems (DSS).
• With regard to biodiversity, xFarm is developing a dedicated sub-module within its Sustainability module. The forthcoming Biodiversity sub-module will enable agribusinesses to quantify biodiversity levels using advanced technologies such as bio-acoustic sensors and satellite imagery.

If you are curious about our services for food companies, including help with CSRD compliance, come to our company event Agri Data Green Summit this October: we will discuss crucial topics such as AI and Regenerative agriculture. You can register here.