Corporate Sustainability Reporting Directive Readiness

The Corporate Sustainability Reporting Directive (CSRD) is set to replace the 2014 Non-Financial Reporting Directive (NFRD), expanding the requirements for companies in the EU and those with an EU presence to disclose extensive sustainability data. This includes a broad spectrum of quantitative and qualitative information on strategy, policy, targets, risks, and action plans, with a focus on double materiality, reporting intangibles, andhird-party assurance. The directive aligns with the EU Taxonomy and Sustainable Finance Disclosure Regulation (SFDR), emphasizes forward-looking targets and progress, and includes scope 3 GHG emissions. This directive aims to enhance the rigor and traceability of sustainability reporting, aiming for greater transparency and accountability in corporate sustainability practices. Wipro’s approach for CSRD readiness  addresses the immediate data challenges and gaps to enable companies operating in the EU to efficiently report and comply with the updated reporting standards.

Directive Requirements

• Double Materiality
  Companies must disclose potential sustainability-related impacts in terms of both financial impact to the company and the company impact on external stakeholders, including suppliers and customers.
• Reporting Intangibles
  Companies will be required to disclose social, human, and intellectual capital metrics in their annual report.
• Third-Party Assurance
  Companies will be required to have an external auditor monitor their reporting process and output.
• EU Taxonomy & SFDR
  All companies affected by CSRD will have to format their report in alignment with the EU Taxonomy and Sustainable Finance Disclosure Regulation (SFDR).
• Machine-readable Data
  The annual report must be in XHTML format in accordance with European Single Electronic Format (ESEF) regulation.
• Targets and Progress
  CSRD requirements focus on forward-looking information, including set targets and the progress made towards them.
• Scope 3 Emissions
  Companies will be required to disclose their scope 3 GHG emissions and establish official reduction targets.
• Single Access Point
  Companies will need to upload their sustainability and financial reporting data to the European Single Access Point (ESAP) database.

CSRD Reporting Milestones

Wipro's approach for CSRD readiness.

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