The purpose of the new reporting directive is to ensure that companies disclose appropriate information about their sustainability risks and opportunities, as well as their impact on people, society and the environment.
From 2024, the directive on corporate sustainability reporting will be amended in the European Union. Community decision-makers expect from the new regulation, which will enter into force this year and in several steps in the following years, that companies disclose appropriate information about the sustainability risks and opportunities they face, as well as their impact on people and the environment. In order to comply with the new directive, consumption measurement and the collection and analysis of data are essential.
As you know, in November 2022, the European Parliament adopted the new European Union directive on corporate sustainability reporting, the CSRD (Corporate Sustainability Reporting Directive). The European Union has developed a multi-step system for the introduction of the directive, which gradually expands the range of affected businesses. From January 1, 2024, CSRD must be applied by large companies listed on EU regulated markets and employing more than 500 employees that fall under the scope of non-financial reporting (NFRD – Non Financial Reporting Directive). Companies belonging to this group will first have to submit a report in 2025 based on the new guidelines based on their operations in 2024. From January 1, 2025, the CSRD affects large companies not currently covered by the NFRD, for which the first mandatory reporting is due in 2026.
The purpose of the new reporting directive is to ensure that companies disclose appropriate information about their sustainability risks and opportunities, as well as their impact on people, society and the environment. According to the CSRD, the sustainability report should be “comparable, reliable and easy for users to find and use using digital technologies”.
“In order for companies to be able to prepare a fair report that corresponds to reality, they naturally need data, and for that they need to measure their consumption. Schneider Electric can also support companies subject to CSRD in this area, since through our solutions they can automatically measure the their energy consumption and can monitor it either locally or on a cloud-based software platform. This offers them the opportunity on the one hand to compile the relevant part of their sustainability report simply, quickly, accurately, with minimal resource expenditure, and on the other hand to significantly reduce their energy consumption. measurement makes the invisible visible, it also shows waste and the possibility of saving,” Benjámin Feldmájer, Schneider Electric’s sustainability manager, pointed out.
There is also an increasing demand among domestic businesses to reduce their exposure to rapid changes in the energy market as much as possible. The way to do this is through the optimization of their energy use, electrification, and the significantly greater use of renewable energy sources, for which consumption measurement and the processing and analysis of incoming data are essential.
Schneider Electric has designed its product portfolio to cover the entire cycle of consumption measurement. In other words, they provide consulting services to help companies decide where and which meters to place for optimal results, and offer advanced energy management systems for visualizing and processing incoming data, as well as quick and easy reporting.
In addition, if there is a need, they support businesses in the interpretation of incoming data and in taking steps based on them to further optimize consumption, as well as in the preparation of reports, either with advice or with their software solutions. Although the guidelines for the report for the year 2024 are expected this year and in 2025 only a relatively narrow group of businesses will have to report on their sustainability results according to the new expectations, it is worth starting to prepare now. The first step for this is the preparation of the measurement and the acquisition of the necessary systems for processing the data.
“Measuring and monitoring allow us to see how we use energy. We are often asked when should we start preparing for the changing EU reporting obligation and how much will it hurt? The best answer to this is to do it now and the companies the preparations. This situation is a bit like in the case of muscles, similarly you can strengthen the abilities with training, so it takes time before the measurement of the data becomes a storehouse of usable and exciting information. Besides, those who start later will spend much more effort and then bring the others in. It should also not be forgotten that with intelligent devices and software, domestic companies can not only more easily meet the European Union’s reporting requirements, but they can also make great progress in the direction of more efficient energy use. In practice, this means that significant energy savings opportunities are opening up for us, as energy consumption can be reduced by up to 15-20 percent,” Benjámin Feldmájer added.