CSRD – Corporate Social Responsibility Directive
While the CSRD requires information on strategies, risk management and PASIs, the TR enhances the disclosure of companies by the means of KPIs. For example, companies have to publish the proportion of their turnover derived from products or services associated with economic activities and the proportion of their capital expenditure and the proportion of their operating expenditure related to assets or processes associated with economic activities that qualify as environmentally sustainable under the rules of the TR.
Sustainability risks are first and foremost supposed to be taken into account by investment firms when designing and implementing their own risk management. However, as the risks of client portfolios are to be considered to constitute indirect risks to the investment firms, it is not perceivable that investment firms will not also include risk management processes and tools to also actively monitor and manage the sustainability risks associated with their clients’ portfolios.
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