Corporate Sustainable Reporting Directive (CSRD) and the Double Materiality Assessment (ESRS) is an EU framework from 2024 requiring companies to report on how sustainability issues, such as climate change impacts their business and how their operations in turn affect people and planet – a unique concept called “Double Materiality”. It applies to business that meet two of the three criteria- more than 250 employess, turnover greater than €40M and €20M total assets
CBAM (Carbon Border Adjustment Mechanism) is an EU policy putting a carbon price on imports to the EU of iron & steel, cement, fertilizer, aluminum, hydrogen, electricity, initially, to be expanded around 2030 to include more sectors like petroleum products, chemicals, and industrial gasses.
If you’re an EU-based company importing products in the affected categories, or a non-EU company exporting these products to the EU, you’ll need to comply with CBAM.Penalties Penalties for non compliance can reach up to €50 per ton of CO2.
Sustainability Disclosure Requirements (SDR) has been developed with the Financial Conduct Authority (FCA) to govern sustainability disclosure requirements for the financial market participants in the UK. Covering sustainable investment product labelling, detailed disclosures, distributor mandatory disclosures and anti-greenwashing ruling.
Streamlined Energy Carbon Reporting (SECR) is a mandatory annual reporting for businesses that meet two of the following criteria 250+ employees, £36M turnover and £18M + balance sheet. Declaring their carbon emissions and timed reduction plans.
Energy Savings Opportunity Scheme (ESOS) is a mandatory 4 yearly reporting for businesses that meet one or both of the following criteria 250+ employees and an annual turnover of £44M+, and a balance sheet £38M+. Reporting on the total energy consumption (TEC) form Operations, Transport and Processes
For more detailed information on these Mandatory Requirements – download Our Compliance – CSRD & CBAM or Carbon Certification Information Pages from our Knowledge Hub, Or to discuss further book your free 30 minute (no obligation) consultation now.
The major challenge for all businesses is to decide to which standard and methodology to reference their interpreted carbon status against.
B CORP certification demands extensive declaration, accountability, and transparency in various areas beyond carbon, covering workers policies, diversity, benefits, community and change to company constitution. It is a significant commitment, but one that speaks volumes about a company’s dedication to more than just carbon emissions. Costs start at £2,200 for a £500k business to £8000 for a £10M business.
SBTi Science Based Targets initiative provides a structured approach to setting emissions reduction targets in line with the latest climate science. It’s a commitment to halve emissions and reach Net Zero by 2050 with clear steps of committing to the Paris Agreement Goals, developing and submitting emissions reduction targets for SBTi validation. SBTi costs are around $1250 per validation submission.
ISO 14064-3:2019 Specificies the principles, requirements and gives guidance for verifying and validating greenhouse gas (GHG) statements. It is a standard that many busineses declare their carbon status against. Requiring, initial set up, regular internal and external audits to maintain accreditation.
PPN 006 is a mandatory government sustainability disclosure requirement, when tendering and running government contracts. Requiring a committed and published carbon management plan with regular updates to maintain vendor status.
NHS Evergreen vendor framework requires principle NHS vendors, to retain their status by submitting their Scopes 1, 2 & 3 emissions status by 2025 including downstream transport, and achieve level 2 framework status then move onto Product Carbon Footprint submissions by 2027.
Ecovadis is a globally recognized assessment platform that rates businesses’ sustainability based on 4 key categories: environmental impact, labour, and human rights standards, ethics and procurement practices. Companies undertake a self-assessment based ona questionnaire with many hundreds of questions. The questions require the respondent to provide evidence of their sustainability performance for the different categories listed above.
The assessment is then externally verified by EcoVadis’ sustainability experts. Following this process, companies receive an EcoVadis score from zero to 100, which is used to create reliable industry rankings. Grading their scoring under bronze, silver, gold and platinum levels of attainment.
These let companies compare their business’s sustainability position with that of industry peers.
For more detailed information on your these Certification requirements – download Our Compliance Information Page from our Knowledge Hub, or to discuss further book your free 30 minute (no obligation) consultation now.