EU's New Rules Alter Seafood Sustainability Reporting

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by KnowESG
KnowESG_ESG regulation
Image courtesy of https://www.cfo.com/

The Corporate Sustainability Reporting Directive (CSRD) came into effect in January in the European Union, necessitating increased environmental, social, and governance (ESG) disclosures from seafood companies.

The CSRD requires "large undertakings," defined as EU companies surpassing two of three criteria: a balance sheet exceeding EUR 20 million, a net turnover of EUR 40 million, or an average employee count of 250.

Specific reporting requirements will be outlined in the upcoming years, potentially including value-chain reporting that could impact smaller companies doing business with larger ones.

To avoid future complications, seafood companies must start planning for these requirements, as stated by PwC Norway's Director of Strategy and Sustainability, Inki Brown, and PwC Partner, Hanne Johansen.

The global seafood industry will be affected by the CSRD due to value-chain reporting, even if companies are not obligated to report directly.

Companies dealing with larger entities will need to gather crucial climate-related data, such as greenhouse gas emissions, to comply with CSRD requirements.

Smaller companies may be asked by customers to disclose sustainability information or worker safety measures due to the reporting obligations of their larger counterparts.

For instance, a Norwegian seafood company supplying a larger EU-based company with reporting requirements might be required to disclose sustainability data or risk falling behind competitors.

The CSRD will establish a new sustainability reporting standard for all companies, and it is normal to feel overwhelmed by these changes.

The positive aspect is that the CSRD aligns with existing best practices in the seafood industry, giving companies that have already adopted these practices a head start in meeting the new requirements. Integrating sustainability into their business strategy is advisable for companies doing business with EU companies affected by the CSRD.

To view and compare company ESG Ratings and Sustainability Reports across sectors, follow our Company ESG Profiles page.

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Source: Sea Food Source

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