Part 1 of the blog series where we give you a quick overview of the latest reporting requirements that were passed by the EU parliament.
All of these reporting requirements have one thing in common - increased demands on supply chains to become traceable.
What is the goal?
Make sustainability reporting equally important to financial reporting.
With its new requirements, the EU is tackling the problem of quality reporting by establishing a common reporting framework. Also, the CSRD aims to ensure that businesses report reliable and comparable sustainability information to re-orient investments towards more sustainable technologies and companies.
Companies' impact on society and environment needs to be reported, to do that, data from internal and external processes (including supply chains) needs to be tracked.
All large companies with operations within the EU, that meet at least 2 of the 3 criteria:
>250 employees, and/or
> EUR40M turnover and/or
> EUR20M total assets
Impacted companies must submit their report aligning with the CSRD on 1 January 2025, for the 2024 financial year.
Fines for non-compliance are EUR10M or 5 % of the total annual turnover of the company or twice the amount of the profits gained or losses avoided because of the breach.
ProDecipher's supply chain traceability tools are already today being used to help companies prepare for the upcoming reporting requirements. Ask our team for a product demo.