The EU Corporate Sustainability Reporting Directive: Why Suppliers Outside Europe Should Care
The EU Corporate Sustainability Reporting Directive entered into force in January 2023. Companies in its scope will ask their suppliers for environmental data, and an ISO 14001 system is a practical way to provide it.
Key points
- The Corporate Sustainability Reporting Directive entered into force on 5 January 2023.
- Reporting companies need information from their value chain, including suppliers outside the EU.
- ISO 14001 does not equal sustainability reporting, but it produces much of the data and control that reporting needs.
What the directive does
The directive requires companies in its scope to report on environmental, social and governance matters using common European reporting standards, and to have the information assured. Reporting covers the company’s own operations and material impacts in its value chain.
What suppliers can expect
- Questionnaires on energy, emissions, water, waste and materials
- Requests for evidence, not only statements
- Environmental criteria in supplier approval and contracts
- Interest in certified management systems as a sign of reliable data
How ISO 14001 helps
An environmental management system already identifies significant aspects, tracks compliance obligations, sets objectives and monitors performance. Strengthening the measurement of energy, emissions and waste within that system is the most direct way to answer customer requests with numbers you can defend.