Green business: aligning with the Corporate Sustainability Reporting Directive (CSRD)

What is CSRD?

The Corporate Sustainability Reporting Directive (CSRD) is an integral part of the European Union's strategy to enhance transparency in Environmental, Social, and Governance (ESG) metrics within corporate operations. By revising and expanding the previous Non-Financial Reporting Directive (NFRD), CSRD mandates a broader range of companies to disclose information on how they operate and manage social and environmental challenges. The directive not only aims to standardise reporting to make comparisons easier but also drives accountability and encourages more sustainable business practices.

Although CSRD primarily targets larger corporations, its ripple effects significantly impact small and medium-sized enterprises (SMEs). As the business ecosystem shifts towards more rigorous sustainability standards, SMEs will find themselves at a crossroads—either adapt to these evolving expectations or risk falling behind. Early engagement in sustainability reporting enables SMEs to gain a competitive edge and identify operational inefficiencies and opportunities for improvement, which can lead to cost savings and enhanced operational performance.

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Overview of corporate sustainability reporting

Corporate sustainability reporting has evolved from voluntary disclosures to a structured requirement under initiatives like CSRD. This reporting covers various sustainability metrics, such as energy use, waste management, labour practices, and ethical governance. The goal is to provide stakeholders—including investors, customers, and regulatory bodies—a comprehensive view of a company’s sustainability efforts and risks. This evolution reflects a growing recognition that a company's environmental and social impacts are critical factors in assessing its overall performance and future viability. As these reports become more detailed and standardised, they also become more crucial in strategic planning and stakeholder communications.

For SMEs, initiating sustainability practices offers strategic advantages. By starting with manageable steps, such as conducting a carbon footprint analysis or adopting simple waste reduction measures, SMEs can gradually build their capability to comply with more comprehensive requirements in the future. This proactive approach not only prepares them for potential regulatory changes but also positions them as forward-thinking and responsible businesses in the eyes of customers and business partners.

Read more: The power of sustainability: Why investing in sustainability drives faster company growth

Sustainability efforts extend beyond compliance; they contribute significantly to building a reputable brand that resonates with modern consumers and investors who prioritise environmental responsibility. Moreover, as larger companies are required to ensure their suppliers adhere to similar sustainability standards, SMEs that have already embraced these practices are more likely to be favoured in supply chain selections. This creates a competitive edge, enabling SMEs to secure more business opportunities and forge stronger partnerships with major corporations.

Importance of sustainability in corporate reporting

Sustainability in corporate reporting reflects a global movement towards more sustainable operational practices. As governments and international bodies tighten environmental regulations, and global consumer preferences for eco-friendly businesses and products increase, businesses are compelled to reevaluate their operations to meet these new standards. This proactive approach to sustainability is crucial not just for compliance but for ensuring long-term viability in an increasingly eco-conscious market. By aligning with these practices, companies are not only mitigating risks but are also leveraging opportunities for innovation and growth in a green economy.

Historical context and legislative background

The evolution from the Non-Financial Reporting Directive to the Corporate Sustainability Reporting Directive

The transition from the Non-Financial Reporting Directive (NFRD) to the Corporate Sustainability Reporting Directive (CSRD) represents a significant evolution in the EU's approach to sustainability reporting. The NFRD, established to enhance transparency and promote the disclosure of non-financial information, laid the groundwork by mandating large companies to report on social and environmental matters. However, the CSRD expands on this foundation by broadening the scope of companies affected, increasing the detail and rigour of the reports, and standardising reporting criteria to ensure comparability and consistency across the EU. This progression marks a shift from encouraging transparency to enforcing comprehensive sustainability reporting standards.

What makes CSRD different from previous directives?

The CSRD introduces several key enhancements that differentiate it from the NFRD. Firstly, it includes a wider range of companies, including listed SMEs (starting from 1 January 2026), thereby increasing the transparency obligations across a broader spectrum of the economy. Secondly, it mandates the disclosure of sustainability information that is more detailed, particularly concerning how companies affect and are affected by environmental and social issues. This includes the requirement to report on all three scopes of emissions, which was not explicitly covered under the NFRD. Lastly, CSRD aims for alignment with global reporting standards, which facilitates the integration of European businesses into a global framework of sustainability practices.

What the EU is doing and why

The European Union's proactive approach to advancing the CSRD reflects a strategic commitment to fostering a sustainable economic environment that can compete on a global scale. By implementing comprehensive sustainability reporting standards, the EU aims to ensure that businesses consider their environmental and social impacts and manage associated risks more effectively. This not only helps in aligning European companies with international expectations but also in driving them towards more sustainable practices, which are increasingly becoming a determinant of competitiveness in global markets.

Transposition by EU member states

Transposition of the CSRD into national laws is currently underway across the EU. As of March 2024, several EU member states have made significant progress: five have fully adopted legislation, ten have proposed legislation, and seven are in the consultation phase. This diverse state of preparedness reflects the complex nature of integrating such expansive reporting requirements into different national legal frameworks. The EU-wide CSRD Transposition Tracker by Ropes & Gray provides ongoing updates on these developments, indicating a strong but varied commitment to implementing these directives across member states.

Read more: Germany streamlines corporate sustainability rules: CSRD implementation welcomed

Key features of the CSRD

New rules on corporate sustainability reporting

The CSRD introduces significant changes to the way businesses approach sustainability reporting. From January 2023, these new regulations have started a transformation in corporate reporting, embedding sustainability as a core component. For large EU companies, the deadline to align with these regulations begins in 2025, and for SMEs, the alignment is expected by 2027. The CSRD mandates that sustainability reporting be integrated with financial reporting, providing a unified view that highlights the interconnections between a company's economic performance and its environmental and social impact. This approach aims to enhance the overall transparency and accountability of businesses, making it easier for stakeholders to assess a company's sustainability efforts and risks comprehensively.

Read more: What is CSRD and how does it affect your business?

Scope and depth of reporting required

Under the CSRD, the scope of reporting has been significantly broadened and deepened. Companies are now required to report on a range of ESG metrics, structured into four main sections within their management reports: General, Environmental, Social, and Governance. This detailed framework is outlined by the European Sustainability Reporting Standards (ESRS), which provide specific guidance on how to structure reports effectively. The ESRS demands that companies provide data on over 1,200 indicators, covering everything from direct and indirect emissions to broader social and community impacts. This exhaustive approach ensures that companies disclose all relevant information that might affect their sustainability profiles or influence stakeholder decisions.

Read more: 86% of the Spanish stock market plans to become carbon neutral

Sector-specific impacts and considerations

The CSRD also acknowledges the varied impacts and considerations across different sectors by requiring sector-specific disclosures, which are to be fully implemented by 2026. This tailored approach allows reports to address unique environmental and social challenges and opportunities that are specific to each industry. For instance, the manufacturing sector may focus heavily on waste management and resource efficiency, while the financial sector might emphasise transparent governance and the social impacts of investment activities. The forthcoming sector-specific ESRS will guide companies on how to include these nuanced details, ensuring that all pertinent aspects of their operations are evaluated and reported.

Read more: Industry carbon footprints: transport, events, and celebrities

This comprehensive structure not only fosters a more accountable corporate environment but also equips companies with the clarity needed to navigate the complexities of sustainability reporting. By standardising these reporting practices, the CSRD aims to bring about a uniformity that allows for comparability across companies and sectors, significantly enhancing the integrity and usefulness of sustainability reports. This, in turn, supports stakeholders, including investors, regulators, and the public, in making more informed decisions based on robust and reliable data.

Who needs to comply?

Is the Corporate Sustainability Reporting Directive mandatory?

Yes, the CSRD is mandatory for a wide range of companies within the European Union and certain non-EU entities with significant operations within the EU. The directive builds on and extends the previous requirements of the NFRD, aiming to standardise and deepen the reporting on sustainability issues across various sectors. While the CSRD doesn’t apply to non-listed SMEs, the European Commission has proposed to develop separate standards that non-listed SMEs could voluntarily use. Compliance for selected companies is not optional, and failure to adhere to the CSRD could result in legal and financial repercussions, reflecting the EU’s strong commitment to enforcing sustainability practices across its market.

Download CSRD brochure

Criteria for companies required to comply

The CSRD marks a significant expansion in the scope of businesses required to engage in detailed sustainability reporting. Initially, the directive extends these requirements beyond the firms previously covered under the NFRD. Approximately 50,000 companies across the EU, up from 11,700 under NFRD, are now mandated to report under CSRD. This includes:

• large EU companies, whether they are publicly listed or not, and include EU and non-EU subsidiaries, that meet two of the following three criteria:

1. 1. 250 employees
   2. net revenue of €40 million
   3. total assets of €20 million

• listed EU SMEs, except micro undertakings that don’t meet at least two of the following three criteria: 

1. 1. 10 employees
   2. net revenue of €900,000
   3. total assets €450,000 

• certain non-EU companies that operate within the EU market generating a turnover of €150 million or more within the EU and own at least one of the following:

1. 1. a large EU-based undertaking
   2. a subsidiary with securities listed in the EU 
   3. a branch with €40 million in net turnover

Non-EU companies and extraterritorial impacts

The CSRD also addresses the global nature of modern business by including significant non-EU companies in its reporting requirements. These companies must start reporting on their operations related to the EU by 2029, concerning their 2028 financial year. This measure ensures that non-EU companies with significant operations in the EU adhere to the same transparency standards as EU-based companies, creating a level playing field and fostering a globally sustainable business environment. The inclusion of these companies underscores the EU’s broader strategy to promote sustainable development worldwide and influence global corporate behaviour.

Implications for SMEs

Although the primary focus of the CSRD is on larger corporations, SMEs are not exempt from its impact. Listed SMEs will need to start complying by 2027, with an optional two-year deferral. This delayed timeline for SMEs is designed to provide them with sufficient time to prepare and align their reporting practices with the new standards. It’s important for SMEs to begin preparing as soon as possible, as early adoption can facilitate smoother transitions and provide competitive advantages in increasingly sustainability-focused markets.

Read more: Aligning with CSRD: the smart move for future-proofing your business

The comprehensive approach of the CSRD, including its extraterritorial reach and staggered compliance timelines, reflects the EU's commitment to enhancing sustainability across all scales of business operations.

Timeline for implementation: When must companies comply?

The compliance dates are staggered, starting in 2025 for companies previously under the NFRD, with SMEs and foreign companies following in subsequent years. The implementation timeline for CSRD is structured to give companies time to adapt:

• 2025: Companies previously subject to the NFRD must comply with CSRD for reporting on the 2024 fiscal year.

• 2026: Other large companies not previously covered will start reporting under CSRD for their 2025 fiscal year.

• 2027: Listed SMEs begin reporting for the 2026 fiscal year, with an optional two-year deferral.

• 2029: Non-EU companies with significant EU operations start reporting for the 2028 fiscal year.

Compliance requirements

What will your company need to disclose for CSRD requirements?

Under the CSRD, companies are required to disclose a broad range of information that provides a clear, comprehensive view of their sustainability impacts and practices:

1. General company information:
Report on matters such as strategy (including business model and strategy and sustainability-related risks), implementation (supply chain due diligence procedures, sustainability policy, and progress), and performance (KPIs and strategic targets).

2. Environmental matters:
Detailed reports on value chain impact, including climate-related risks (like energy use and emissions across all scopes), pollution (like waste management), water and marine resources (like water usage), biodiversity and ecosystems (like environmental impact and conservation efforts), and resource management and circular economy (like recycling).

3. Social matters:
Information on the workforce (like human rights issues), value chain workers (like employee rights), community impact (like ethical business practices), and consumers and users (like product safety and consumer rights).

4. Governance matters:
Details on business conduct, such as governance structures, board responsibilities, and stakeholder engagement. 

The CSRD also requires alignment with other frameworks, such as the Task Force on Climate-related Financial Disclosures (TCFD), the Global Reporting Index (GRI) and the EU Taxonomy Regulation, which requires companies to disclose their sustainability performance, particularly relevant to the environmental section.

Independent auditors will need to certify these reports to ensure compliance with CSRD standards. By meeting these requirements, companies comply with the CSRD and reinforce their commitment to sustainable development, enhancing their credibility and long-term viability in a competitive global market.

Detailed compliance checklist for companies

For companies navigating the CSRD, adhering to a detailed compliance checklist can ensure that all aspects of the directive are met:

• Determine applicability: Verify if your company falls under the CSRD based on size, turnover, or securities listing.
• Understand reporting scope: Identify which parts of your business operations, including subsidiaries and controlled entities, fall within the reporting requirements.
• Gather data across ESG domains: Collect comprehensive data covering environmental, social, and governance factors. This should include details on emissions, waste management, social impacts, and governance structures.
• Implement reporting frameworks: Use the ESRS to structure your reports, ensuring that all required information is comprehensively covered.
• Prepare sector-specific disclosures: If applicable, prepare to report on sector-specific sustainability issues as detailed by the upcoming sector-specific ESRS.
• Document compliance processes: Maintain records of how data is collected, reported, and verified.
• Train staff: Ensure that staff responsible for compiling and reporting data are fully trained on CSRD requirements and implications.
• Schedule regular reviews: Incorporate regular reviews of your sustainability reporting processes to ensure ongoing compliance and to capture any changes in CSRD regulations or related legal frameworks.

Enforcement

Enforcement mechanisms and penalties

The enforcement of the CSRD is critical to ensuring that companies comply with its comprehensive reporting requirements. To enforce these standards, the EU relies on a framework that includes both penalties for non-compliance and mechanisms to monitor adherence effectively. 

Penalties can vary significantly across different EU member states, reflecting national legal frameworks and enforcement policies, but they generally include substantial fines and, in some cases, mandatory corrective actions. These penalties are designed not only as a deterrent but also to emphasise the importance of accurate and transparent sustainability reporting.

For companies that fail to meet the CSRD requirements, national authorities can impose sanctions that might also affect the company's public image and investor confidence, potentially leading to more significant financial losses than the penalties themselves. Additionally, repeated non-compliance can trigger more stringent scrutiny of a company's practices, leading to increased regulatory oversight.

The role of national authorities

National authorities play a pivotal role in the enforcement of CSRD. Each member state is responsible for transposing CSRD into national law, which includes setting the specific penalties for non-compliance and establishing the mechanisms for enforcement. These authorities are tasked with:

• Monitoring compliance: National regulatory bodies are responsible for overseeing the implementation of CSRD within their jurisdictions. This involves regular audits and reviews of company reports to ensure they meet the established standards.
• Providing guidance: To facilitate compliance, national authorities often provide guidelines and resources to help companies understand and meet their reporting obligations. This support is crucial for ensuring that all companies, especially SMEs with fewer resources, can adhere to the requirements.
• Implementing penalties: When discrepancies or instances of non-compliance are identified, these authorities are responsible for enforcing penalties. This process must be transparent and consistent to maintain the directive’s credibility and effectiveness.
• Facilitating training and education: To promote better compliance, national authorities may also organise training programmes and workshops for companies. This helps ensure that businesses are well-informed about the directive's requirements and best practices in sustainability reporting.
• Adapting to feedback and changes: As CSRD is relatively new and may undergo adjustments and refinements over time, national authorities must stay responsive to feedback from businesses and other stakeholders. This adaptive approach helps refine enforcement practices to be more effective and less burdensome.

Recent developments and adjustments in CSRD implementation

Recently, the European Council and European Parliament agreed to a provisional deal that delays the implementation of sustainability reporting standards for certain sectors and non-EU companies by two years. This decision, modified in February 2024, pushes the adoption of sectoral ESRS and standards for significant non-EU companies to June 2026. This adjustment aims to give companies more time to prepare for these new reporting requirements and focuses on the initial set of ESRS to ensure a smooth transition. 

Vincent Van Peteghem, Belgian Deputy Prime Minister and Minister of Finance, emphasised that this measure would reduce the administrative burden on companies, thus supporting European competitiveness by allowing more time for companies to implement these standards effectively. This postponement reflects the EU's flexible yet firm approach to enhancing corporate sustainability practices, balancing the need for progress with the practicalities of implementation for businesses across the spectrum, including SMEs.

Strategic implications

How will the CSRD requirements impact your sustainability reporting strategy?

The introduction of the CSRD requires companies to reassess and often revamp their sustainability reporting strategies. This regulatory framework demands a more thorough and integrated approach to reporting that not only covers broader sustainability metrics but also ties these metrics directly to financial performance.

For companies, particularly SMEs, this means a strategic shift towards greater transparency and accountability. Firms will need to invest in robust data collection and management systems, enhance stakeholder communication, and possibly adjust their business models to align with sustainability objectives. The strategic imperative is clear: early and proactive engagement with CSRD requirements not only ensures compliance but also positions companies as leaders in sustainability, enhancing their market reputation and stakeholder trust.

Overview of GHG emissions reporting

Under CSRD, companies are required to report all greenhouse gas (GHG) emissions, including Scope 1 (direct emissions from owned or controlled sources), Scope 2 (indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting company), and Scope 3 (all other indirect emissions). This comprehensive approach ensures that stakeholders have a clear picture of the company’s overall environmental impact, enhancing the credibility and comparability of sustainability reports.

Read more: How do carbon footprints work?

CSRD and the Scope 3 connection

The CSRD’s emphasis on comprehensive emissions reporting, including Scope 3 emissions, marks a significant strategic challenge for many businesses. Scope 3 emissions, which encompass indirect emissions from activities such as purchased goods, services, and downstream product use, often constitute the largest portion of a company's carbon footprint. Reporting these emissions requires a deep understanding of the entire value chain and cooperation from suppliers and partners to obtain necessary data. For companies, this means a deeper engagement with their supply chain on sustainability, which can drive improvements in environmental performance across the board and create opportunities for innovation in products and services.

Read more: Uncovering the impact of Scope 3 emissions

The Scope 3 reporting dilemma: navigating upstream and downstream complexity

Scope 3 emissions reporting, involving tracking and verifying emissions from upstream suppliers to downstream users, is inherently complex due to the breadth and ambiguity of indirect emission sources. Achieving accurate and consistent data demands standardised reporting practices across various entities and jurisdictions. To effectively manage these complexities, companies must develop strategies to promote similar reporting and sustainability practices among their suppliers, which is crucial for comprehensive emissions reporting.

This approach includes working closely with suppliers to ensure they can provide accurate data, investing in supplier development programmes, integrating sustainability into procurement, and designing products that are more sustainable to use and recycle. In navigating these complexities, it is beneficial for companies to partner with trusted firms like DGB Group, which can assist in measuring and managing Scope 3 emissions.

Assess your carbon emissions with DGB

Sectors with high Scope 3 emissions

Certain sectors, such as manufacturing, retail, and consumer goods, typically face higher Scope 3 emissions due to their reliance on extensive global supply chains and the nature of their products’ end-use.

Read more: Unveiling hidden carbon footprints: overlooked emissions sources in business operations

For these sectors, the strategic implications of CSRD are particularly significant. They must not only focus on internal sustainability practices but also drive environmental performance improvements across their entire value chain. This can offer a competitive advantage by enabling companies in these sectors to meet the increasing demand from consumers and investors for environmentally responsible products and practices.

Read more: How to reduce your business’ travel emissions through nature

Overall, the strategic implications of CSRD are profound, requiring companies to integrate sustainability into the core of their business operations and strategies. This integration not only ensures compliance with current regulations but also prepares businesses for future challenges and opportunities in a rapidly evolving global sustainability landscape.

The future of corporate sustainability in the EU

Predictions and upcoming trends

The trajectory of corporate sustainability in the European Union is set to steepen, with regulations like the CSRD playing a pivotal role. As we move forward, the expectation is that sustainability will be further embedded into the fabric of business operations, not only for compliance but as a core strategic pillar. Additionally, as consumer awareness and demand for sustainable products increase, companies will be pressured not only to improve their internal practices but also to ensure that their entire value chain adheres to sustainability standards.

For SMEs, the trend will likely involve scaled expectations where they will be required to adopt similar reporting and sustainability practices as larger corporations but tailored to their operational scales and capacities. We can also anticipate an increase in digital tools designed to assist SMEs in meeting these requirements more efficiently, making sustainability more accessible across the board.

Read more: How to use DGB Group's carbon footprint calculator on your journey to net zero

Value chain considerations become the norm 

One of the most significant shifts in corporate sustainability is the move towards comprehensive value chain considerations. This trend is increasingly becoming the norm, as seen with the CSRD’s emphasis on Scope 3 emissions, which require companies to report indirect emissions that occur in their value chain. This shift necessitates a deeper collaboration across sectors and industries, encouraging companies to engage not just with direct suppliers but throughout their extended supply networks to ensure compliance and foster sustainability initiatives.

For businesses, this means developing longer-term relationships with suppliers based on shared sustainability goals, investing in supplier development, and using purchasing power to influence wider industry practices. These considerations are not only about mitigating risks but also about leveraging opportunities to innovate in product development, resource efficiency, and waste reduction.

The increasing importance of sustainability in global markets

Sustainability is becoming a decisive factor in global market dynamics. Consumers, investors, and governments are increasingly prioritising ESG factors in their decision-making processes. This shift is evidenced by the growing trend of green finance, where financial services, including investments, loans, and insurance products, are linked to sustainable outcomes. Companies that lead in sustainability are likely to attract premium investments and partnerships and secure a competitive edge in the global market.

Moreover, as international standards and expectations align more closely with the EU’s stringent regulations, companies operating globally will need to adopt these practices to maintain access to these markets. This global harmonisation of sustainability standards will likely spur further innovation in sustainable solutions and strategies, as companies strive to meet these challenges while capturing the opportunities presented by a greener economy.

Download CSRD brochure

In conclusion, the future of corporate sustainability in the EU points towards a more integrated, strategic approach where sustainability is not just a regulatory requirement but a fundamental component of corporate identity and strategy. As these trends continue to evolve, companies that anticipate and adapt to these changes can not only expect to remain compliant but also to thrive in an increasingly sustainable and competitive global landscape.

Becoming sustainable with DGB Group

The CSRD marks a significant evolution in the EU's approach to enhancing transparency and accountability in corporate sustainability practices. It expands the scope of reporting beyond the previous NFRD, incorporating more detailed and rigorous standards, especially in the realm of GHG emissions across all three scopes. The CSRD not only affects large corporations but also has implications for SMEs and non-EU entities with substantial operations within the EU. Its comprehensive requirements are set to reshape how businesses ESG, embedding these into the core of strategic business operations and reporting.

Read more: Sustainability simplified: Carbon footprinting for beginners

The importance of proactive compliance

Proactive compliance with CSRD is essential. By integrating sustainability deeply into operations now, companies can ensure they are well-prepared to meet not only the current requirements but also future regulations. Starting small with achievable steps in sustainable practices can make the transition more manageable and cost-effective. 

For SMEs, engaging early with the requirements of CSRD means they can progressively build their capacity to handle more complex sustainability reporting and practices in the future. Moreover, acting now can prevent the rush and potential cost spikes as demands for carbon solutions like carbon units (also known as carbon credits) increase due to tightening regulations and growing global awareness.

Looking ahead, corporate sustainability will continue to evolve rapidly, driven by both regulatory changes and a shifting market landscape where sustainability becomes a central consideration for investors, consumers, and business partners. Companies will need to adopt a mindset of continuous adaptation to stay ahead. This involves regularly updating their sustainability strategies, staying informed about global sustainability trends, and being flexible enough to adjust to new requirements and expectations.

Read more: How to stay ahead of the curve on sustainability

Furthermore, as major corporations are increasingly held accountable for not only their direct operations but also their supply chains, SMEs that proactively align with these sustainability practices can secure a competitive advantage. They become more attractive as partners to larger corporations, which are required to ensure their suppliers adhere to similar stringent standards.

Under the CSRD, the requirement for companies to report on all three scopes of emissions — direct emissions (Scope 1), indirect emissions from purchased energy (Scope 2), and all other indirect emissions (Scope 3) — highlights the necessity for a comprehensive carbon footprint analysis. 

DGB specialises in providing such analysis, equipping companies with the essential data to understand their complete environmental impact. Our expertise allows us to offer precise carbon footprint assessments in line with the GHG Protocol that helps companies not only meet CSRD reporting requirements but also commit to significant environmental improvements. 

Measure your carbon footprint

In addition, with DGB’s verified carbon units, we can help companies address their carbon footprint and compensate for their hard-to-abate emissions across all three scopes. We are a leading carbon project developer, specialising in managing high-quality, nature-based carbon projects that deliver high-integrity carbon units. These carbon units, each representing 1 tonne of carbon emissions removed or avoided, are used by companies to compensate for their emissions to reach net-zero goals. As an added benefit, our carbon units offer many additional benefits to the environment and local communities, making them particularly attractive for companies that want to make a larger positive impact. Our projects focus on ecosystem restoration, conservation, and biodiversity enrichment, ensuring that our carbon units contribute to tangible, positive environmental impacts. 

Learn more about the benefits of DGB’s carbon units

As companies are compelled to not only reduce but also compensate for their carbon footprints under the CSRD, the demand for carbon units, especially for compensating for Scope 3 emissions, is set to rise. DGB is perfectly positioned to meet this growing need. With the Science Based Targets initiative (SBTi) now including Scope 3 in environmental attribute certificates, our carbon compensation solutions provide companies with a reliable method to offset their emissions. Compensating for your emissions with DGB not only aids in compliance with emerging global standards but also enhances your company's sustainability profile in the eyes of investors, partners, and consumers.

Read more: The importance of carbon offsetting in achieving net zero

Our global team ensures that companies benefit from our deep understanding of diverse ecological contexts and regulatory environments, making DGB your ideal partner in sustainability.

Close-up of a variety of tree seedlings. Hongera Reforestation Project, DGB.

In conclusion, embracing CSRD is not just about compliance—it is about positioning your company for future success in an increasingly environmentally conscious world. It offers a chance to lead in sustainability, enhance your brand’s reputation, and engage more deeply with the global shift towards sustainable development. The strategic benefits extend beyond compliance, providing companies with opportunities for innovation, improved stakeholder relationships, and a stronger market position in a green economy. This proactive approach not only meets regulatory expectations but also aligns with the broader societal shift towards sustainability that benefits everyone—today and in the future.

By partnering with DGB, companies can confidently navigate the complexities of carbon footprint measurement and compensation within the CSRD landscape, leveraging our expertise to make informed decisions that benefit both their business and the planet. Join us in our mission to drive substantial environmental change and improve sustainability across the globe.

Contact our experts to start your sustainability journey on the right path