The new Corporate Sustainability Reporting Directive (CSRD) is a paradigm shift in how companies report and manage their environmental, social and governance impacts. For plastics manufacturers heavily dependent on fossil-based raw materials, this presents a number of challenges – but also opportunities to transform and future-proof their operations.
In this article, we explore the impact of the CSRD on the plastics industry, the requirements of the directive and how companies can adapt to the new reality.
What is CSRD and how can it affect you?
The CSRD is an update and extension of the previous Non-Financial Reporting Directive (NFRD). The new Directive places higher demands on companies to report on their sustainability performance and integrate sustainability into their business strategy.
The CSRD will be phased in from 2024 and covers:
- All large companies in the EU (more than 250 employees, more than €40 million turnover or more than €20 million balance sheet total).
- Listed small and medium-sized enterprises (SMEs) from 2026.
- Third country companies with significant activities in the EU.
Plastic manufacturers, especially if they have a large share of fossil-based raw material, will have to report on climate emissions, resource efficiency and social impact.
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