How do you describe the difference between ESG and CSRD?

Both ESG guidelines and CSRD relate to a company’s responsibility toward the environment, good governance, and society.

CSRD focuses on corporate social responsibility, requiring companies to report and disclose their impact on the environment and society.
ESG guidelines, on the other hand, refer to how companies manage environmental, social, and governance aspects. It is about sustainable business practices, promoting transparency and ethical behavior, and striving for a positive societal impact. ESG guidelines influence both corporate decision-making and investment choices.
For example, reporting CO2 emissions falls under CSRD, while making decisions to reduce the CO2 footprint aligns with ESG guidelines.

Why are ESG guidelines and CSRD reporting often confused?

The terms ESG (Environmental, Social, Governance) and CSRD (Corporate Social Responsibility Directive) are frequently mentioned in business and sustainability discussions. However, their exact meaning and differences often remain unclear. This lack of clarity makes it difficult to fully understand how they apply and impact businesses.
Understanding these concepts is essential for companies striving for a more sustainable and responsible business approach. By gaining insight into how ESG guidelines and CSRD affect your business, organizations can develop more effective strategies, using sustainability as a growth driver.

Now that you understand the difference between ESG and CSRD, what is the next step?

The key is to determine your own strategic goals and vision. Do you want to reduce your CO2 footprint, comply with the CO2 performance ladder, or integrate circularity into your business operations?
Get in touch with us so we can determine the best approach together. You can take your first step within a week!