Ongoing ESG reporting project: Efficient and future-proof mapping of increasing CSRD requirements
The year 2023 starts with an important milestone for ESG reporting: On January 5, 2023, the EU directive on sustainability reporting,the Corporate Sustainability Reporting Directive (CSRD), came into force. This also leads to comprehensive and mandatory sustainability reporting for the insurance industry.
The CSRD introduces more detailed reporting requirements than under the current Non-Financial Reporting Directive (NFRD), including mandatory disclosure of human rights, environmental rights, social rights and governance factors. It applies to a broader area and range of topics.
Non-financial reporting must now be audited and published as part of a company’s digital management report. This puts non-financial reporting on an equal footing with financial reporting.
The CSRD, together with the EU taxonomy, will become an ongoing project for all companies as their ESG thresholds, activities and underlying environmental targets are successively expanded and tightened. Insurers’ sustainability reporting, which today is primarily qualitative, will be supplemented by extensive regular quantitative reporting in the sense of annual sustainability reporting with full audit relevance. The new reporting requirements under the CSRD will apply to insurance companies in stages from 2024, as they are already affected by the Non-Financial Reporting Directive (NFRD).
As a new reporting component of the CSRD, the disclosure of the assessment of taxonomy capability already applies for 2022 and the assessment of taxonomy compliance from 2023. According to a classification system, companies must present the taxonomy-compliant share of their sales revenues, capital expenditures (CapEx) and operating expenditures (OpEx) and the relationship to their sustainability strategy.
CRSD Reporting obligations at a glance:
- Sustainability report according to a uniform EU reporting standard (ESRS).
- Publication in the management report
- Publication in a machine-readable format
- Obligation for external audit
Would you like to read the whole article?
We have summarized all ESG changes incl. effects on insurers as a technical article in the insurance journal Zeitschrift für Versicherungswesen.
Learn more about:
- Which areas in the insurance industry are most affected by CSRD.
- What central role investments play
- Which approaches exist for sustainability assessment
- How the topic can be mapped organizationally
- How data collection and management can succeed
- How reporting can be integrated into the existing IT architecture
Websession: SAP Sustainability Reporting
In a joint web session with SAP, we talked about efficient ESG data management in SAP and how to comply with reporting obligations under CSRD. The accompanying recording provides you with valuable insights as well as practical tips to improve your sustainability performance.
You can watch the entire recording on the website of our partner SAP:
DO YOU HAVE ANY QUESTIONS?: Feel free to contact us!
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