CSR Europe’s Markets Leadership Hub Members Rally EU Commissioner McGuinness to Make the ESRS Work for Business — CSR Europe

2. SUPPORT IN THE DEPLOYMENT AND CAPACITY-BUILDING

The members of CSR Europe’s Leadership Hub strongly advocate for sufficient support to companies in the deployment of EU regulations, as well as for adequate interpretation actions. For transparency-related regulations to be effective, businesses need to be accompanied in the implementation of the various requirements. For example, a toolbox with resources and educational supports, would represent a welcomed initiative, also in light to overcome the evident sustainability skills shortage. In this regard, we applaud the intention of the European Commission to establish an interpretation mechanism, as a subsequent step to the publication of implementation guidelines by EFRAG, to provide clear, practical, tailored, and timely guidance, especially in relation to the newest sustainability reporting requirements introduced by the ESRS, among which the financial and non-financial connection and the conducting of the double materiality analysis. This interpretation mechanism would benefit particularly the wide number of first-time prepares targeted by the CSRD and ESRS, who might lack experience and knowledge of these requirements. Concerning this point, we suggest ensuring sufficient and systemic engagement of such body with business representatives, to make sure that practical experiences are taken into consideration and guidance needs are addressed.

Moreover, national contact points may be established for more in-depth local support as, in addition to intelligence and support in understanding, they could provide nationwide perceived vulnerabilities and macro trends information on ESG-related risks and targets, especially useful for suppliers. In this regard, it is considered fundamental to unlock adequate funding and training opportunities for the establishment of local collaborative platforms for SMEs’ capacity-building activities. Preparers are at risk of bearing high costs due to unprepared and unaware partners in the EU and third countries. This should build on the efforts already made in the framework of the CSDDD’s accompanying measures (art. 18) as amended by the European Parliament, according to which the Commission should actively participate to the capacity building of companies.