The corporate reporting landscape is rapidly evolving with new mandates from both the SEC and the European Union. Here’s what businesses should be aware of:
The European Union’s Corporate Sustainability Reporting Directive (CSRD) is casting a wider net than ever before. According to the CSRD guidelines, an estimated 50,000 companies of varying sizes in the EU will be bound by its regulations between 2024 and 2029. Specifically, large companies or groups with consolidated subsidiaries should be mindful. To fall under this category, a company must meet two out of these three criteria — a net profit of €40 million, assets worth €20 million, or a workforce of 250 or more. Furthermore, international corporations listed on the EU-regulated markets, including EU subsidiaries must ensure CSRD compliance.
Meanwhile, the SEC is setting the stage for change. Their inaugural mandatory filings are slated for 2024 (including Scope 1 and 2), using data collected in 2023. Beyond formal regulations, the momentum for transparency is surging. Investors, pension funds, and private firms are emphasizing emission reduction metrics, with a keen interest in supply chain-related emissions (Scope 3). This trend indicates that regardless of regulatory mandates, the investor community will continue to advocate for enhanced voluntary disclosure.
By leveraging proprietary techniques, Harmony automates the sourcing and extraction of information required by regulators. This eliminates the traditional, labor-intensive approach and makes the process more efficient. This way, Harmony ensures high comparability and efficiency, paramount in reporting key environmental, and human capital issues.