Jan 15, 2025

Author of the article: You can save this article by registering for free here . Or sign-in if you have an account. "Companies need to take a more holistic approach to determine which ESG topics are material to their businesses and start engaging with entities in their value chain to address potential gaps in their CSRD reporting." - Jamie Wallisch, Sustainability Expert, Assent Business Wire Article content Recent study of over 150 manufacturers reveals that 76% of companies did not meet new value chain minimum disclosure requirements for sustainability topics Article content Try refreshing your browser, or Article content OTTAWA, Ontario — Assent Inc. (Assent), a leading solution provider in supply chain sustainability management, recently evaluated over 150 manufacturers across sectors to assess their readiness for new environmental, social, and governance (ESG) reporting requirements mandated under the EU’s Corporate Sustainability Reporting Directive (CSRD) , which goes into effect this year. Advertisement 2 THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others. Daily content from Financial Times, the world's leading global business publication. Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account. National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles, including the New York Times Crossword. 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Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Sign In or Create an Account Email Address Article content With over 84 disclosure topics and 1,000 data points potentially required, the CSRD requires a new level of supply chain engagement and transparency for companies to meet the expansive disclosure requirements across ESG topics. Assent’s CSRD Readiness Report: Evaluating Sustainability Reporting in Manufacturing revealed that while over 99% of manufacturers are integrating ESG considerations into their business strategies, there are apparent gaps in reporting on numerous ESG topics mandated by the new EU directive – in fact, three quarters do not meet complete CSRD requirements. Assent’s research on publicly available sustainability reports shows that manufacturers in the industrial equipment, electronics, medical devices, automotive, and other manufacturing industries currently have critical gaps in meeting the CSRD requirements in the following areas: 24% of the companies assessed provided biodiversity disclosures that meet the CSRD requirements, with most companies lacking structured targets or disclosures related to biodiversity 49% of companies set targets for water use and marine conservation, highlighting the need for better resource management to address water scarcity and marine health 56% of companies disclosed Scope 3 emissions targets, meaning approximately half lacked a comprehensive approach to supply chain emissions reduction, which is crucial for full CSRD alignment 57% of companies assessed their financial risks related to material ESG topics, which is required to meet investor and regulatory expectations 58% of companies accounted for their community impacts and set related targets, underscoring the need for greater community engagement to reduce the risks of reputational damage “Our recent study highlights that manufacturers hold a false sense of security regarding their CSRD readiness,” said Jamie Wallisch , sustainability expert at Assent. “Regardless of their size or headquarter location, manufacturers today operate on a global scale. Companies need to take a more holistic approach to determine which ESG topics are material to their businesses and start engaging with entities in their value chain to address potential gaps in their CSRD reporting.” The CSRD is just one legal requirement that continues to drive a need for increased transparency, accountability, and supply chain due diligence for companies. Large EU publicly listed companies are required to submit their first reports according to the CSRD standards in 2025 based on their FY2024 data, and large EU companies that are not publicly listed will need to meet the new reporting obligations in 2026. Global companies with EU subsidiaries that meet the size threshold also come into scope in 2026. Advertisement 3 Article content About Assent Inc. Assent provides a leading supply chain sustainability management solution that supports manufacturers across the globe in addressing their product compliance and ESG needs. Founded in 2010, the company helps manufacturers collect and manage the supply chain data needed to meet environmentally and socially responsible product standards. With advanced technology and deep regulatory expertise, Assent enables companies to collect data that is aligned with regulations and industry standards to manage risks, accelerate market access, and foster sustainable practices. For more information, visit: www.assent.com . View source version on businesswire.com: https://www.businesswire.com/news/home/20250115506939/en/ Contacts #distro Share this article in your social network Share this Story : Assent Research Highlights Significant Gaps in Manufacturer Readiness for the EU's New Corporate Sustainability Reporting Directive (CSRD)