CSRD spotlight: Basics of reporting boundaries

#ESRS #PwC #ReportingBoundaries Unveiled Key Takeaways:

Understand your full reporting scope including non-consolidated entities for accurate #ESRS compliance.
Identify operational control to define reporting boundaries, crucial for ESG reporting under #ESRS.
Prepare for entity-specific disclosures to address material sustainability impacts not covered by #ESRS.

Further Insights

ESRS Introduction: PwC's national office discusses the need for precise sustainability reporting, touching on organizational boundaries and their significance under the European Sustainability Reporting Standards (ESRS).
Operational Control: Operational control as a concept plays a pivotal role in determining reporting boundaries, extending the scrutiny beyond simple financial control to encompass the entire value chain.
Double Materiality: The necessity of acknowledging double materiality - financial and impact materiality - requiring companies to report on how they affect and are affected by sustainability issues.
Reporting Boundaries: Discussing the complexities behind defining 'reporting boundaries' to ensure comprehensive inclusion of all pertinent entities and activities in sustainability reports.
Entity-Specific Disclosures: Addressing the gap in ESRS by developing entity-specific disclosures to fully capture material sustainability impacts, risks, and opportunities unique to an organization.

Closing Thoughts: As companies strive to align with the evolving ESRS, the challenge of adequately defining reporting boundaries and developing entity-specific disclosures underscores the need for meticulous preparation. How are businesses adapting their strategies to embrace these requirements fully?

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