EU’s CSRD will come into force in early 2025
The CSRD (Corporate Sustainability Reporting Directive) raises the bar in terms of accountability and standardisation for ESG (Environmental, Social and Governance) criteria. Crucially, organisations will be mandated to disclose sustainability information in their management reports, meaning both financial and sustainability information will be published side by side. All sustainability information needs to be reported in a standardised format to enable better comparison between firms.
In many ways, the CSRD simply demands organisations to bring their sustainability reporting in line with the financial disclosures mandated by KYC regulations. ESG means caring about more than just the environment; it also means taking an interest in social matters too. Cracking down on money laundering and other financial irregularities should be part of this. That’s why ESG and KYC go hand in hand.
CoorpID: Meeting all your regulatory demands
The financial penalties for failing to meet KYC regulations are significant. The reasons for these KYC penalties vary and could result from a lack of due diligence or outright criminal conduct. In many cases, organisations failed to show regulators the information required – and the same failings are likely to be behind penalties for non-financial compliance too.
The good news is that with CoorpID all disclosures – financial and non-financial – are easier to make than ever. Increased competition among financial institutions is turning KYC into a positive differentiator and the same is likely to be the case with sustainability. In fact, did you know that sustainability can boost both client demand and improve talent recruitment?
CoorpID is a great fit for KYC, CSRD and any other regulatory demands. Our ethos of ensuring data is high-quality, comprehensive and up-to-date is ideal for economic, environmental, and social metrics. Make sure your organisation is compliant with all regulatory demands – wherever they appear.
Job den Hamer, CEO CoorpID