Tag Archive for: Sustainability

Join The Sustainability Network at the SÉRVULO ESG Congress

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Servulo ESG Congress Reporting and Due Diligence: new duties and new challenges with image of hand holding transparent globe o Earth with The Sustainability Network logoWe are excited to announce that Rui Francisco, President of The Sustainability Network, will be a featured speaker at the upcoming II SÉRVULO ESG Congress in Lisbon on November 26th. This year’s theme, “Reporting and Due Diligence: New Duties and New Challenges,” promises to spark meaningful discussions around the evolving landscape of sustainability and governance.

As organizations navigate the complexities of environmental, social, and governance (ESG) standards, effective reporting and due diligence have become imperative. The Corporate Sustainability Reporting Directive (CSRD) emphasizes the need for companies to disclose relevant sustainability information transparently and coherently. Under CSRD, a broader range of organizations, including medium-sized enterprises, are now required to report on their sustainability impacts, highlighting the growing importance of robust ESG reporting frameworks.

Rui will explore the intricacies of sustainability reporting information systems at the congress. These systems are essential for streamlining the ESG reporting process, allowing organizations to collect, manage and analyze data efficiently. By implementing effective reporting information systems, companies can ensure compliance with regulatory requirements, such as the CSRD, while enhancing their capacity to communicate their sustainability efforts to stakeholders.

ESG reporting systems, such as The Sustainability Network’s ESG Reporting SaaS platorm, are crucial. They streamline intricate data collection processes, ensuring organizations can easily produce accurate and timely reports. Additionally, they empower organizations to leverage data analytics, allowing for valuable insights into sustainability performance, identification of improvement areas, and effective progress tracking over time. By facilitating compliance with regulatory requirements, these systems also help organizations foster trust among stakeholders, showcasing their dedication to transparency and accountability in their sustainability initiatives.

We want to extend our heartfelt gratitude to Sérvulo & Associados for organizing this important congress, with special recognition to Paulo Câmara for his instrumental role in making this event possible.

Don’t miss the chance to be part of this event. Register now to attend: https://eventos.servulo.com/2-congresso-esg.

We look forward to seeing you in Lisbon!

Unlocking the CSRD Essentials: Your Ultimate Guide to ESG Reporting

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In the recent weeks, the European Financial Reporting Advisory Group (EFRAG) published the “CSRD Essentials,” a comprehensive guide aimed at helping companies navigate the new European Corporate Sustainability Reporting Directive (CSRD). This document serves as an essential tool for organizations beginning their journey in environmental, social, and governance (ESG) reporting, providing clarity on the regulatory framework and practical advice on compliance. Download CSRD Essentials or from the EFRAG website.

Here’s a breakdown of the main sections covered in the book:CSRD essentials manual by EFRAG

  1. NFRD vs CSRD: What’s New? – This section highlights the differences between the Non-Financial Reporting Directive (NFRD) and the new CSRD, focusing on the expanded scope, more stringent requirements, and the introduction of mandatory reporting standards for a broader range of companies. The CSRD extends the reach from 11,000 to over 42,500 companies, including non-EU companies operating in the EU.
  2. Scope and Timing – The guide provides a detailed timeline for the phased implementation of the CSRD, explaining which companies are affected and when. It includes large companies, listed small and medium-sized enterprises (SMEs), and non-EU companies that meet specific thresholds, outlining the critical deadlines for compliance.
  3. European Sustainability Reporting Standards (ESRS) – This section introduces the new reporting standards, developed by EFRAG, which companies must adhere to under the CSRD. The standards cover general, environmental, social, and governance aspects, providing a unified framework to ensure consistency and comparability across reports.
  4. Audit & Assurance – The document details the new requirements for the assurance of sustainability information, including mandatory limited assurance initially, with a gradual move toward reasonable assurance. It highlights the role of statutory auditors and independent assurance service providers in validating the accuracy of reported data.
  5. Materiality and Internal Supervision – Focused on the concept of “double materiality,” this part of the book explains how companies need to assess and disclose both financial materiality (the impact of sustainability risks on the company) and impact materiality (the company’s impact on society and the environment).
  6. SMEs and the Value Chain– Recognizing the challenges faced by SMEs, the book discusses simplified reporting standards for these entities while maintaining alignment with the overall goals of the CSRD. It also touches on the broader implications for supply chains and how smaller companies can align their practices with larger counterparts.

The “CSRD Essentials” by EFRAG is a vital reference for any organization starting its ESG journey. It breaks down complex regulatory requirements into manageable steps, ensuring businesses are well-equipped to meet their sustainability reporting obligations under the CSRD. For those looking to deepen their understanding of ESG compliance, this book is an invaluable resource.

Understanding Taxonomies and the EU Taxonomy in Sustainability

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What is a Taxonomy?

A taxonomy is a systematic framework used to classify and organize concepts, objects, or entities based on their relationships and characteristics. Originating from biological sciences where it was used to categorize living organisms, the concept of taxonomy has been widely adopted in various fields, including information technology, education, and sustainability. By providing a structured method for categorization, taxonomies help create a common language and understanding among diverse stakeholders, facilitating communication, analysis, and decision-making processes.

The EU Taxonomy in Sustainability

The EU Taxonomy is a classification system established by the European Union to guide and standardize what constitutes sustainable economic activities. As part of the EU’s broader Green Deal initiative, the EU Taxonomy aims to support the transition to a low-carbon, resilient, and resource-efficient economy by providing clear criteria for sustainability. It serves as a critical tool for investors, companies, and policymakers to identify environmentally sustainable activities, thereby directing capital flow towards sustainable projects and investments.

Benefits of the EU Taxonomy

  1. Clarity and Transparency: One of the primary benefits of the EU Taxonomy is that it brings clarity and transparency to the sustainability landscape. By setting clear definitions and criteria for what constitutes a sustainable activity, it helps avoid greenwashing, where companies falsely claim environmental benefits. This transparency is crucial for investors who seek to invest in genuinely sustainable projects.
  2. Consistency and Comparability: The taxonomy provides a consistent framework across the EU, ensuring that all stakeholders are on the same page regarding sustainability criteria. This consistency allows for better comparability of sustainability performance across different companies and sectors, facilitating more informed investment decisions.
  3. Investor Confidence: By providing a clear and standardized classification system, the EU Taxonomy boosts investor confidence in sustainable finance. Investors can be more certain that their investments are genuinely contributing to environmental goals, which is increasingly important as the demand for sustainable finance grows.
  4. Policy Alignment: The taxonomy aligns with broader EU policy objectives, including the Paris Agreement and the UN Sustainable Development Goals (SDGs). It supports the EU’s commitment to achieving carbon neutrality by 2050 and promotes a more sustainable and resilient economy.

Problems the EU Taxonomy Solves

  1. Combatting Greenwashing: Greenwashing has been a significant challenge in the sustainability domain, with companies often exaggerating their environmental credentials. The EU Taxonomy addresses this by providing a rigorous and transparent classification system that holds companies accountable and ensures only genuinely sustainable activities are recognized.
  2. Reducing Information Asymmetry: Prior to the taxonomy, there was a lack of standardized information on what constitutes a sustainable activity. This information asymmetry made it difficult for investors and other stakeholders to make informed decisions. The EU Taxonomy reduces this gap by offering clear and accessible criteria.
  3. Facilitating Sustainable Investments: The taxonomy plays a critical role in mobilizing capital towards sustainable investments. By clearly defining sustainable activities, it helps investors and financial institutions identify opportunities that align with their sustainability goals, thereby channeling more funds into projects that contribute to environmental objectives.
  4. Enhancing Regulatory Compliance: For companies, the EU Taxonomy provides a clear framework to follow, making it easier to comply with regulatory requirements related to sustainability. This reduces the regulatory burden and helps companies integrate sustainability into their core business strategies.

In conclusion, the EU Taxonomy represents a significant advancement in the pursuit of a sustainable economy.

Talk to our expert team and start your ESG reporting with confidence. Manage your ESG reporting easily!

What is sustainability

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Sustainability is a broad discipline that encompasses various strategies and practices aimed at meeting the needs of the present without compromising the ability of future generations to meet their own needs. The concept integrates three core elements: environmental, economic, and social—often referred to as the three pillars of sustainability. Environmental sustainability involves managing natural resources judiciously to prevent degradation and maintain ecological balance. Economic sustainability ensures that communities can maintain economic stability and growth over time, while social sustainability focuses on maintaining fair and beneficial practices toward labor, the community, and the regions in which a corporation operates.

The concept of sustainability in its modern form was born during a time of growing concern about human impact on the environment, particularly highlighted in the late 20th century. The term became popularized after the publication of the Brundtland Report in 1987, formally titled “Our Common Future,” by the World Commission on Environment and Development (WCED), led by Gro Harlem Brundtland. The report defined sustainable development and called for economic growth that is environmentally accountable and socially inclusive. This was a response to increasing concerns over the destructive impact of industrialization on the planet and its ecosystems, igniting global discussions on how to address these pressing issues without halting economic progress.

Aligning with this foundational philosophy, the United Nations introduced the 17 Sustainable Development Goals (SDGs) in 2015 as part of its 2030 Agenda for Sustainable Development. These goals provide a blueprint for peace and prosperity for people and the planet, now and into the future. Each goal addresses global challenges we face, including those related to poverty, inequality, climate change, environmental degradation, and justice. The SDGs are all interconnected, and the idea is that success in one area often involves tackling issues more commonly associated with another.

The alignment of sustainability with the SDGs is evident as each goal incorporates aspects of economic, social, and environmental sustainability. For example, SDG 13 (Climate Action) directly addresses environmental sustainability by calling for urgent actions to combat climate change and its impacts. Similarly, SDG 1 (No Poverty) and SDG 8 (Decent Work and Economic Growth) reflect the economic dimensions of sustainability, advocating for sustained, inclusive economic growth and efforts to eradicate poverty. Meanwhile, SDG 5 (Gender Equality) and SDG 10 (Reduced Inequalities) emphasize social sustainability by promoting equality and the empowerment of all individuals.

Understanding and implementing sustainability practices in line with the UN’s SDGs requires collaborative efforts from governments, businesses, civil societies, and individuals. The comprehensive approach outlined by the SDGs highlights the interconnectedness of sustainability’s three pillars and underscores the holistic effort required to achieve these goals. Through global partnership and cooperation, the principles of sustainability can lead to substantive improvements in our environmental integrity, economic prosperity, and social equity, paving the way for a balanced and sustainable future for all.

Within the broad framework of sustainability, various standards have been developed to address specific industry needs and challenges. These standards provide guidelines and benchmarks for businesses to measure and report on their sustainability performance. For instance, European Standards CSRD/, the Global Reporting Initiative (GRI) offers standards that are widely used by organizations to report on environmental, social, and corporate governance (ESG) issues. Similarly, the Sustainability Accounting Standards Board (SASB) provides industry-specific standards that help businesses disclose financially material sustainability information to investors. Other frameworks, such as ISO 14001, focus on environmental management systems and help organizations improve their environmental performance through more efficient use of resources and reduction of waste. Each of these standards caters to different aspects of sustainability and is designed to be applied across various business sectors, providing a structured approach to managing and communicating sustainability performance.

Adopting these sustainability standards can significantly benefit companies on their journey to managing ESG reporting more effectively. By integrating these standards into their business operations, companies can ensure comprehensive tracking and reporting of performance across all ESG aspects.

Our Team can help you on your journey to ESG reporting easily.