RSM Voice of Strategy & Sustainability | JUNE 2024
Dear reader,
As we near July, the summer seems to be starting in the Netherlands. For this month, our experts have once again provided you with five interesting articles. This edition includes:
The European Forced Labour Regulation: An in-depth look into the latest measures to combat forced labour across Europe and its implications for businesses.
Introduction to the Dutch Implementation of the CSRD: Learn about how the Netherlands is implementing the Corporate Sustainability Reporting Directive and what it means for companies.
The Value of ESG Ratings for Private Equity: Understand the growing importance of Environmental, Social, and Governance (ESG) ratings in the private equity sector.
‘Right to Repair’ Directive: This directive must be implemented by European Member States within two years, ensuring consumers' rights to repair their devices.
New Era of Sustainability Reporting: Delve into the implementation of the European Sustainability Reporting Standards (ESRS) and the interoperability guidance provided by the International Sustainability Standards Board (ISSB).
PS: Have you seen our "State of Play: Sustainable Automobility" research? We have examined the current state of sustainable automobility and the goals set by the European Commission across all European member states. The comprehensive report can be accessed by clicking on the link in the preceding sentence or via this website.
Thank you for joining us again. We appreciate your continued readership and look forward to sharing more insights with you in our upcoming editions. Should you have any comments, tips or suggestions for cooperation, please let us know.
Warm regards,
Mario van den Broek - RSM Netherlands Tax & Business Consulting Services
Navigating New Regulations: Ensuring Ethical Supply Chains in a Global Marketplace
The European Parliament has approved a new regulation which will enable the European Union (EU) to prohibit the sale, import and export of goods made using forced labor, banning them from the EU single market. The proposed regulation will give member state authorities and the European Commission the ability to investigate suspicious goods, supply chains and manufacturers. If a product is deemed to have been made using forced labor, it can no longer be sold on the EU market & shipments will be intercepted at the EU’s borders. Goods may be allowed back on the EU market once the company eliminates forced labor from its supply chains. The regulation still requires final approval from the EU Council. If approved, EU member states would have to start applying it in 3 years.
Introduction to the Dutch Implementation of the CSRD
All EU Member States must implement the Corporate Sustainability Reporting Directive (CSRD) by July 6, 2024. With the reporting deadline approaching for entities with securities on EU-regulated markets/public interest entities, swift action by Member States is essential. In the Netherlands, significant progress has been made towards implementing the CSRD. While the drafts are not yet final, they closely adhere to the CSRD framework, making significant changes unlikely. This article explores the specifics of the Dutch implementation of the CSRD, providing a brief overview of the entities within scope, the phased reporting obligations, and opportunities for consolidation at both the parent and subsidiary levels.
The Value of ESG Ratings for Private Equity
ESG ratings are becoming increasingly integral to investment strategies across various markets. While public markets have made considerable progress in ESG adoption, private equity (PE) lags behind in transparency and integration. With institutional investors managing over 12 trillion USD in private market funds, the importance of ESG ratings cannot be overstated. This article examines the significance of ESG ratings for PE, explores their pros and cons, and evaluates their long-term value through scenario planning, supported by data from our recent research.
‘Right to Repair’ Directive must be implemented by European Member States within two years.
The Council of the European Union has given final approval to the Directives on Right to Repair (R2RD). Once signed by the presidents of the Council and the European Parliament, the directives will appear in the Official Journal and member states will have two years to follow them. What will this mean for businesses and what should they consider?
New Era of Sustainability Reporting: Implementing ESRS and ISSB Interoperability Guidance
The IFRS Foundation and EFRAG have jointly published guidance material that illustrates the high level of interoperability between the International Sustainability Standards Board’s IFRS Sustainability Disclosure Standards (ISSB Standards) and the European Sustainability Reporting Standards (ESRS). The guidance provides concrete information on how companies can efficiently apply both sets of standards, supported by direct comparisons of the required disclosures. As more and more companies around the world are required to report on sustainability-related information through the ISSB Standards and ESRS, this guidance seeks to reduce the complexity and duplication of already extensive work.
If you have any questions regarding these articles, or have an inquiry for our team of Tax and Consulting experts, please contact:
Mario van den Broek ([email protected] - +31 6 15 83 55 00)