· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on South China Morning Post or enjoy below:
🗞️ Driving the news: Asian companies, especially in China, face growing pressure to comply with the EU's Corporate Sustainability Reporting Directive (CSRD), which requires detailed environmental and social disclosures
• This regulation applies to both EU-based firms and foreign companies doing significant business in the EU, with deadlines beginning as early as 2024
• Experts see it as a potential advantage for companies that adapt quickly
🔭 The context: The CSRD is part of the EU's effort to cut greenhouse gas emissions by 55% by 2030 and reach carbon neutrality by 2050
• The new rules will require firms to provide comprehensive reporting on sustainability metrics, far beyond previous standards, which many Asian firms are unprepared for
• Non-EU firms like Chinese manufacturers could face compliance challenges, especially in key sectors like electric vehicles and solar panels
🌍 Why it matters for the planet: The directive aligns with global climate goals, compelling companies across industries to prioritize sustainability
• By requiring extensive environmental reporting, the EU aims to foster transparency and encourage businesses worldwide to reduce their carbon footprints
⏭️ What's next: Larger non-EU companies must meet CSRD requirements by 2024, with smaller firms given until 2028
• Asian businesses will need to rapidly upgrade their sustainability reporting or risk losing access to the critical EU market
💬 One quote: "Many companies in Asia are still unprepared to meet the obligations, putting their reputation at risk," said Will Symons, Deloitte Asia-Pacific’s sustainability leader
📈 One stat: The EU aims to reduce greenhouse gas emissions by 55% by 2030, as compared to 1990 levels
Click for more news covering the latest on corporate sustainability
