Companies lag behind in implementing ESG legislation

The introduction of the Corporate Sustainability Reporting Directive (CSRD) has been delayed by a year, but this is hardly resulting in progress in the implementation and reporting of Environmental, Social & Governance (ESG) targets at many companies. This is according to a Quoratio Group survey of over 200 financial professionals on the implementation of the CSRD. 

Only 21 per cent of participants report on their ESG strategy, a slight increase from last year. Most participants say they will start implementing CSRD this year, while only 24 per cent have already started.

Reluctance

According to Wouter Elbers, ESG relationship manager at Quoratio Group, there is still a lot of reluctance among organisations to start implementing the legislation. This is partly because the legislation still needs to be translated into national legislation and because guidelines are still being added at branch level. In addition, more and more organisations are still searching about how best to start the process, who they make responsible for it and where to find the necessary expertise and capacity.

64 per cent of respondents expect to place the responsibility for reporting with the finance department. Setting KPIs is thereby a task for the entire organisation, while administrative implementation is the responsibility of the finance professional.

Don't underestimate it

Elbers stresses that implementing the CSRD is a hefty task that should not be underestimated. From the first workshop on strategy to the delivery of an audited annual report, a period of 18 months is needed, during which information has to be collected, vision and policy have to be developed and data has to be checked for reliability and verifiability. Waiting another year creates administrative pressure, lack of comparative figures and failure to take advantage of opportunities ESG brings to show what an organisation stands for.

Quoratiogroep.nl