Tunley Environmental commented on the challenges the European Union’s Corporate Sustainability Reporting Directive (CSRD) regulation and the threat of jail and heavy fines for non-compliance on a statement issued on 21 October.
According to Tunley, the European Union’s Corporate Sustainability Reporting Directive (CSRD) will accelerate the adoption of sustainable practices, energy-efficient technologies, and alternative fuels. On the other hand, Tunley CEO Will Beer said that shipping lines, marine equipment manufacturers and shipyards will need to speed up their compliance work or risk colliding with the giant iceberg of regulation.
Large European companies need to provide compliant sustainability reports from January 1, while listed SMEs will be brought into line in 2026. Large non-EU companies with significant European business will need to be legally compliant by 2028. Companies which fail to comply with the new regulations will face severe penalties with fines up to five percent of turnover.
Key info on the European Union’s Corporate Sustainability Reporting Directive (CSRD)
- The new directive is crucial for business sustainability but poses significant challenges, especially for the maritime industry.
- Maritime companies must enhance reporting on environmental aspects like emissions, waste management, and biodiversity impacts.
- Failure to comply with the regulations can result in severe penalties, including fines up to 5% of turnover; France has adopted the directive with strict penalties for corporate directors.
- Around 50,000 companies will be affected by the CSRD, with large EU companies complying by 2024, SMEs by 2026, and large non-EU companies by 2028.
- The directive applies to all large companies with significant operations in the EU, requiring comprehensive sustainability reporting, audited by a third party.
- Companies need to understand the directive, assess current practices, and adjust accordingly for compliance.
- The directive increases transparency, combats greenwashing, and allows stakeholders to make more informed decisions.
- The maritime industry has the chance to lead in global sustainability through compliance with the CSRD.
Tunley warned on their statement that the maritime industry is moving too slowly to come into compliance with rigorous new European sustainability regulations.
Tunley CEO, Will Beer, explained that maritime companies would need to improve their reporting on key environmental aspects such as emissions, waste management, and biodiversity impacts. According to him, approximately 50,000 companies would be affected by the CSRD, representing a nearly five-fold increase over current requirements.
Adopting CSRD can certainly pose challenges such as understanding the detailed reporting requirements and integrating them into existing corporate frameworks
…said Tunley, CEO Will Beer.
Additionally, France has adopted the directive into national law with specific penalties for corporate directors that include up to five years in jail plus fines. Around 50,000 companies will fall into the CSRD net, an almost five-fold increase over existing requirements.
Maritime companies will need to enhance their reporting on crucial environmental aspects such as emissions, waste management, and biodiversity impacts. This increased transparency may accelerate the adoption of sustainable practices, including the use of alternative fuels and energy-efficient technologies.
…said Will Beer.
