Why?
Impact transparency is essential for a sustainable economy, with the CSRD representing a critical initial step. However, there are three key shortcomings:
1.
The CSRD allows for varying levels of ambition in implementation, particularly concerning materiality assessment, target-setting, and impact transition plans.
2.
While the CSRD emphasises transparency on policies and actions for impact indicators, it lacks guidance on translating these into impactful decision-making.
3.
Merely reporting on sustainability isn’t enough to drive significant change; governmental incentives and regulations are also necessary. However, the CSRD assumes that increased transparency alone will lead to more sustainable operations.
Given the urgency of the climate and biodiversity crises, it’s imperative that organisations are strongly incentivised to set ambitious targets and transition plans to act within planetary boundaries and above social thresholds.
