Circularity disclosure goes mainstream

What was of interest at World Circular Economy Forum 2023 Accelerator session?

What are large companies, financial institutions and listed Small and Medium Enterprises dealing with?

Corporate Sustainability Reporting Directive (CSRD) requires companies within its scope to report using a double materiality perspective in compliance with European Sustainability Reporting Standards (ESRS) adopted by the European Commission as delegated acts.

Nowadays companies pick and choose to build their sustainability reports, and usually only focus on positive indicators. This is possible when the framework is not based on regulation. Resulting in indicators which are not comparable, not reliable and no verifiable.

Only 2% of companies are ready to report towards requirements included in the draft ESRS E5. Companies may be underestimating the effort needed to become compliant. Data gaps are the main struggle for companies.

Reporting requirements are both quantitative and qualitative. The quantitative disclosures align well with WBCSD's Circular Transition Indicators (CTI).

Collecting data in a truly digital form, and not via spread sheets or mail is fundamental to share and report. Infrastructures like ERP systems, need to evolve and expand from financial reporting to EGS reporting.