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Review your business intelligence

The CSDDD (Climate, Sustainability, and Digital Disclosure Directive) has received approval from the European Parliament. Under this directive, companies will be required to develop evidenced net zero plans, and mandatory reporting aligned with the 1.5-degree Celsius science-based target will be introduced. The reporting requirements will apply to different groups of companies based on their size and turnover, including EU companies with more than 500 employees and a net worldwide turnover of over EUR 150 million, EU companies with more than 250 employees and a net worldwide turnover of over EUR 40 million generated in a high-impact sector, non-EU companies with a net turnover of over EUR 150 million in the EU, and non-EU companies with a net turnover of over EUR 40 million in the EU generated in a high-impact sector.

SMEs will not be directly in scope (YET), but they could be affected in their capacity as contractors or subcontractors or in the supply chain to any of the above companies.

As part of its aim to help the EU transition towards a more climate-neutral and green economy, the CSDDD would oblige some companies (those in groups one and three identified above) to ensure their business models and strategies are compatible with the Paris Agreement.

Additionally, companies that identify climate change as "a principal risk for, or a principal impact of," their operations would have to include emissions reduction objectives in their business plans.

Membership organisations must understand their company members' size and position so that they can adequately represent and support them with their legal reporting obligations. It's time to review the business intelligence you're gathering about your members to future-proof your relevancy and ability to provide the guidance required. CAFA has survey templates and processes that membership organisations can tailor. Get in touch with Mehak at to know more.


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