Why are annual reports so tough? They’re complex, comprehensive, and every year bring new challenges, whether it’s learning to adhere to new reporting frameworks or dealing with changes in tax regulations. There are boatloads of data to collect, functions and people to align internally, and outside experts to consult with to ensure reporting compliance. This year, the most significant changes came with implementing Corporate Sustainability Reporting Directive (CSRD) requirements, an effort led by my colleague Marte van Kuijk, who is Senior Business Controller in our Finance organization.
What is CSRD?
The corporate reporting landscape is always evolving, but the adoption of CSRD under the European Green Deal represented a major shift for companies operating within the EU.
This legislation requires companies to report sustainability information in far greater detail than in the past in order to increase the transparency of what companies are doing, and to make them easier to compare with one another. The aim is to accelerate progress toward a more sustainable economy. CSRD not only mandates reporting of the environmental and social impacts of a company’s activities, it also requires that this information be audited.
The process? Let’s just say there’s a lot to it. It began with a double materiality assessment to identify what environmental and social topics are most material and where they occur in the value chain. This includes both What impact Corbion has on people and the planet (impact materiality), and How changes in the world could affect Corbion (financial materiality). Combining these two views, we compiled a list of the eight most relevant sustainability topics for our company: 1) Climate (including Corbion’s own greenhouse gas emissions, climate-related risks and opportunities, and its low-carbon solutions); 2) Water; 3) Circular economy; 4) Biodiversity; 5) Health and safety; 6) Human rights in the supply chain; 7) Human capital; and 8) Consumer health and product safety.
Within each topic, we looked at and evaluated positive and negative impacts across the value chain. When assessing climate impacts, for instance, we accounted for all emissions, including scope 1 (direct from our operations), 2 (indirect from purchased energy), and 3 (all other indirect emissions in the value chain). We considered our low-carbon solutions (our products) and their positive effects on the planet once they leave our facilities. Alongside this, we assessed financial impacts, identifying both risks and opportunities. It was a huge undertaking, for sure, reporting on over 1,000 data points. In the end, however, investors and stakeholders of all kinds have a clear view of our business’s overall impact, our sustainability policies, and our planned initiatives for continued improvement. And just as importantly, so do we.
Corbion through the CSRD lens
For me, there were countless aha moments and takeaways from my first CSRD experience, but perhaps the biggest was how well prepared Corbion was to meet the elevated demands of the new directive. That can only happen for companies with a longstanding commitment to advancing sustainability and years of rigorous, validated sustainability reporting behind them. I am so proud that Corbion is such a company.
Successful CSRD implementation required the outstanding collaboration of many smart, talented people, who are experts in their fields; it also resulted in something extremely valuable. As Marte pointed out to me, “The greater transparency CSRD creates gives everyone a clearer look at Corbion’s sustainability journey and business practices, in addition to our impacts, risks, and opportunities … and that’s good news for us.” She’s right. Our latest report may tell Corbion’s story better than ever … how resilience is built into our company strategy, the ways we address ESG risks, and the SDG-aligned product portfolio we use to help our customers create value.
Yes, it was a lot of work, but it's a story well worth telling.
Read our Sustainability statement: HERE