With the second deadline for directing corporate social responsibility (CSRD) on the horizon, it is now time for trucks who qualify as “great pledges” to take action – or risk not fulfilling the imminent deadline, such as Eric Gurts, Director of Products Management in Descartes.
The second wave
Sustainability has long stopped being a semi -willing term that companies use in marketing contacts and their companies to satisfy customers, partners and investors. Today, sustainability should be tangible and can be clarified in terms of performance and morals. Interestists not only want to see financial resources, but also want to know, for example, carbon dioxide emissions of the company, which are increasingly important in the context of the so-called emissions 3- The indirect emissions resulting from other organized activities in another value chain, such as transporting goods.
To organize this, the European Union has developed a condition for reporting – directing corporate social responsibility (CSRD). According to CSRD, as of January 2024, it was on the first wave of companies-that listed on the market exchange that regulates the European Union-compliance with the requirements of disclosure through 12 criteria for reporting European sustainability (ESRS), which cover four categories:
- junctionGeneral principles and general disclosure.
- the environmentClimate change, pollution, water and marine resources, biological diversity, ecosystems, resources and circular economics.
- socialSpecial workforce, workers in the value chain, affected societies, consumers and users.
- RulingBusiness behavior.
As of January 2025, the second wave of European Union-based works as “great pledges” (i.e. a listed or not listed company has at least 25 million euros in total assets; and / or at least 50 million euros in a net rotation rate; and / or at least 250 employees (average), will also be able to report these examination requirements.
Other than the European Union (including the European Union companies for a parent in the United Kingdom) that operates in the European Union may now also fall under the scope of corporate social responsibility. They must be asked to provide sustainability disclosure if:
- Its average spinning rate created in the European Union (at the unified or individual level) exceeds 150 million euros for each of the last two consecutive financial years.
- They have at least one subordinate (listed or specific as a “great task”) in the European Union or the European Union branch with an annual net exceeding 40 million euros in the previous fiscal year.
For trucks, this means the ability to provide detailed information on CO2 Romant Emissions 3. Of course, this can only be done on the basis of correct data and visions. In most organizations, this should be good on the agenda of companies. But for those who have not started yet, it has now passed five minutes until midnight – and the hour beats.
Data lack and visions
The ability to measure 3 carbon dioxide emissions is a challenge. Usually, companies do not have enough data or fail to extract the right visions from that information. Moreover, CSRD requires reporting more accurate data than previously expected. Historically, for example, organizations may depend on one container emissions to determine the effect of hundreds of others. In practice, however, many factors affect emissions; Factors such as the type of ship, path, weather, speed, or load. You also need a solution to the various transportation situations. Under CSRD, data extrapolation will not be an option; Everything should be done on a more you love.
Everything, therefore, begins with the right data: both data and internal data from external parties, such as transport companies. Moreover, you need a lot of major data, for example the carbon intensity indicator per bowl, and the correct account algorithms. Everything that needs to be integrated to generate visions to report and comply. It is clear that collecting this information and linking it together in the Excel paper is a hopeless task of it. Fortunately, technology can serve a hand. Therefore, many organizations – especially those who have become obligated to compliance with corporate social responsibility in the first wave – chose the transportation management system (TMS) to reach a large amount of accurate data and carbon dioxide reports, and provide a great deal of time and money in making this information transparent.
Transportation management system
What exactly does such a TMS? TMS is the application of a program that manages the planning, implementation and tracking of the physical movements of the commodities, as well as the settling of shipping. Technology helps in the various challenges facing the two trucks: from planning requests and choosing transportation to the implementation of transportation and financial settlement. TMS combines the important data for business and institutions provide a huge amount of administrative work such as transportation documents, cost calculation and bills, but also in preparing carbon dioxide reports.
Thus, TMS is an indispensable tool to help comply CSRD (and the standards of other sustainability, such as international standards for S1 and IFRS S2 – as well as the future standards that are evaluated). However, as with most software systems, the TMS application can easily take three to six months. In order to be ready by January 2025, companies because of the commitment need to start immediately.
Transfer an obligation to one of the assets
Compliance companies may face unpleasant sanctions. First, non -compliance will be announced. On the market, it increases to sustainability, this can clearly cause reputation damage. After all, you don’t want to be violated for carbon dioxide measures. In addition, organizations also risk the laws imposed legally. Although these sums were not officially established, they may be at least tens of thousands, if not several million euros. In addition, based on the judicial jurisdiction, there is a treatment for the company’s managers to maintain compliance and legal difference on their toes.
Of course, many organizations are working on their approval data for sustainability and value suggestion for some time; Sustainability has been presented well and sustainability can undoubtedly gain a competitive advantage.
Customers are actively looking for companies that are interested in the planet. They want to get sustainable delivery options and be able to choose the solution with the smallest environmental footprint. So companies that have detailed information from TMS can provide the right options for them more than an advantage over competitors who do not. In contrast, this will also improve financial numbers-after all, environmentally friendly surrender options are more efficient and allow delivery.
conclusion
Do not be late by the deadline that is waving on the horizon to comply with the social responsibility of companies. With correct data and visions, the ability to show sustainability throughout the supply chain accurately and with transparency provides a set of opportunities. So he now takes advantage of the embrace of compliance early and gaining a strategic advantage over the competition.
