International testing, inspection and certification leader SGS has introduced a new set of services to help companies comply with the Corporate Sustainability Reporting Directive (CSRD) and enhance their Environmental, Social, and Governance (ESG) reports. The new suite of services is part of SGS’s comprehensive sustainability-focused offer – IMPACT NOW – designed to equip companies with the tools and expertise to handle the increasing regulatory demands for sustainability and ESG disclosures.
The CSRD is a big step in improving the EU’s sustainability reporting framework from its current state. Actually, compared with the current regulation, more than 50,000 companies will be compelled to submit detailed sustainability disclosures. This shall raise the number of companies to be reported on by over 12,000. This new reform has been singled out as a part of the broader drive by the EU to enhance transparency and accountability about the environmental and social effects of businesses. The CSRD introduces increased reporting obligations based on the European Sustainability Reporting Standards, which encompass extensive topics, such as environmental impacts, human rights, social standards, and sustainability-related risks.
As the CSRD is enforced, businesses are under more pressure to not only comply with some of the demanding regulations but also prove their interest in sustainability and transparency. The new bundle of services by SGS is to help companies navigate through the complexities surrounding the CSRD and ensure they are meeting the requirements for reporting standards while enhancing their overall ESG performance.
Some of the services include CSRD Pre-Assurance, ESG Disclosures & Sustainability Report Assurance, and ESG KPI Verification & Assurance. They tailor each service to specific companies so that they might be able to address particular aspects of the CSRD compliance and ESG reporting process.
Some notable services from their portfolios are the CSRD Pre-Assurance service. It is being pitched as a “dry run” for clients looking at assessing the current sustainability reporting processes within an organization. This service enables companies to detect potential gaps and weaknesses in their approach to CSRD compliance before submitting their reports. SGS will undertake a thorough gap analysis of the processes and disclosures against the ESRS requirements. The service also allows companies to receive detailed feedback that can be applied to fine-tune their ESG data points, targets, and reporting structures in alignment with the CSRD’s reporting guidelines. The result is a proper pre-assurance report, which provides handy insights to help the organizations enhance their approach towards CSRD reporting. This pre-assurance service is an important tool that businesses can take recourse for streamlining their reporting processes and getting away from common pitfalls while following the new directive.
The ESG Disclosures & Sustainability Report Assurance is another important service in the suite. This service is targeted toward companies readying to publicly disclose their ESG performance. SGS offers independent verification, validation, and assurance of ESG data, ensuring the information companies provide is accurate, reliable, and in line with established reporting and assurance standards. This service not only bolsters the credibility of ESG reports but also helps companies manage risks associated with inaccurate or misleading disclosures. With third-party assurance, businesses can reassure stakeholders, investors, and regulators that they have sound data and consistent reporting practices under their ESG claims.
Other than these, SGS also offers ESG KPI Verification & Assurance – essentially focused on validation of the metrics and targets companies use in their disclosures. This service is particularly important for organizations with the need to ensure accuracy for their Key Performance Indicators (KPIs) and sustainability targets. Increasing scrutiny from investors, regulators, and the public requires businesses to ensure their ESG metrics are not only credible but aligned with industry standards and expectations. Independent verification by SGS helps companies gain trust and reinforce their commitment toward measurable and actionable sustainability goals. In addition to the above, this service is key in supporting due diligence, risk assessment, and decisions on sustainable financing, which increasingly are data-dependent on ESG.
SGS has been committed to sustainability for many years and hence the new services introduce the way of seeing companies helping create a sustainable future. Géraldine Picaud, CEO of SGS, said that these new services will help organizations navigate a changing landscape of sustainability reporting. With the IMPACT NOW suite, Picaud said, “we are delivering innovative solutions to help organizations navigate CSRD compliance and enhance ESG reporting.” This three-service package delivers clarity and confidence businesses need to address sustainability challenges and meet regulatory expectations in contributing positively to a more sustainable future.
These services come at a time when ESG considerations are becoming central to business operations and decision-making processes. Companies face increasing pressure in the wake of growing demands from stakeholders, including investors, consumers, and regulators, for increased transparency and accountability over issues related to sustainability, hence obliging them to strengthen their ESG practices and reporting frameworks. The CSRD forms a key part of the EU’s broader drive to ensure that businesses take responsibility for their environmental and social impacts, and SGS’s new services are well-positioned to assist in helping companies comply with these requirements.
A comprehensive solution for helping companies achieve CSRD compliance and improve their ESG reporting, the IMPACT NOW suite of services by SGS provides a much-needed holistic approach to supporting companies that might need it the most. That is, through pre-assurance, report assurance, and KPI verification services, SGS assists businesses in ensuring the reliability, accuracy, and transparency of their ESG disclosures, thereby contributing to a more sustainable and accountable business environment.