The Carbon Border Adjustment Mechanism (CBAM)
11 min
Level
In this article we’ll explore what the CBAM is, why it’s been created, and what importers need to know ahead of its introduction.
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Checklist: The 7 Steps to Start Your CSRD Compliance
Level
The CSRD (Corporate Sustainability Reporting Directive) imposes new requirements for non-financial reporting. Here’s a straightforward guide to start your compliance journey, without any unnecessary jargon:
1. Check if your company is affected
The CSRD directive applies to both financial and non-financial companies affected by the Accounting Directive and the Transparency Directive. Companies subject to CSRD include:
- Companies listed on regulated European markets, including small and medium-sized enterprises (SMEs) listed (micro-enterprises identified by the Accounting Directive are excluded);
- Other large European companies, listed or not, exceeding two of the three defined thresholds (250 employees, €40 million in revenue, and/or €20 million in total balance sheet);
- Non-European companies whose subsidiaries or branches generate more than €150 million in revenue within the European Union.
For all the affected entities, the publication of the first CSRD report will take place on the following dates:
- January 1, 2025 (for the 2024 fiscal year) for European and non-European companies already subject to NFRD reporting;
- January 1, 2026 (for the 2025 fiscal year) for large European companies and non-European listed companies on a regulated European market not subject to NFRD;
- January 1, 2027 (for the 2026 fiscal year) for listed SMEs, both European and non-European. A small detail: these SMEs will benefit from an additional two-year delay, provided they justify it;
- January 1, 2028 (for the 2027 fiscal year) for non-European companies whose European revenue exceeds €150 million through a subsidiary or branch.
2. Familiarise yourself with the key priniples
- Double materiality: Examine both the impact of your activities on the environment and society (environmental/social materiality) and the impact of social and environmental issues on your financial performance (financial materiality). Learn more
- ESRS Standards: These European Sustainability Reporting Standards define the precise framework for structuring your reports and help you identify the themes you need to address (e.g., greenhouse gas emissions, respect for human rights). Learn more.
3. Identify your internal and external stakeholders
Engage your stakeholders early to collect precise and relevant data.
- Internally: Financial officers, HR, production teams, etc.
- Externally: Clients, suppliers, investors, regulators. Goal: Mobilize internal and external resources to ease data collection.
4. Centralize your ESG data
- Inventory: Take stock of the available data (e.g., CO₂ emissions, social practices).
- Tools Setup: Automate data collection with dedicated software. This reduces processing time and improves the reliability of the results.
5. Perform a double materiality analysis
- Key Issues: Define the relevant issues for your sector.
- Summary: Create a double materiality matrix to visualize the most critical issues that have both financial, environmental, and social impacts.
6. Plan your report
- Prepare a draft: Structure your information to meet ESRS standards.
- Ensure compliance: Have your indicators validated by experts to ensure they meet regulatory requirements.
7. Get expert support
Don’t do it alone: solutions like Greenly can assist you in streamlining your approach.
To go further, here the Greenly Guide on CSRD methodology.
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Being CSRD compliant is an opportunity to turn your obligations into a strategic lever. You have the keys: it’s your move!
For tailored support, book a demo with our experts here.
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