In the fast-evolving world of sustainability regulations, businesses in APAC are facing new challenges. At a recent private roundtable hosted by Enhesa, industry leaders from sectors such as pharmaceuticals, high-tech manufacturing, chemical production, clothing, and logistics came together to discuss key emerging regulations, including the Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), and the European Union Deforestation Regulation (EUDR). In this article, we highlight the key takeaways from the event and offer insights into how Cority’s data tools can help businesses stay compliant.
1. The Global Sustainability Standards Shaping APAC: CSRD, CSDDD, and EUDR
One of the key discussions during the event was centered on how regulations like CSRD and CSDDD are impacting APAC. These standards are setting new benchmarks for transparency and due diligence, while the EUDR, expected at the end of 2024, is a regulation that has flown under the radar. However, it holds significant implications for companies with deforestation risks in their supply chains.
The influence of these global frameworks extends beyond Europe, prompting companies across APAC to consider their compliance strategies. For businesses in this region, the challenge lies in understanding how these broader regulations will shape local reporting obligations and risk management strategies. Organizations may seek integrated platforms that can handle diverse regulatory requirements, offering tailored tools for double materiality assessments, EFRAG-aligned templates, and XBRL tagging to streamline sustainability reporting.
2. Emerging Sustainability Regulations in APAC
Another theme that came up was the increasing rigor of China’s sustainability regulations, emerging from the stock exchanges of Shanghai, Beijing, and Chongqing. These regulations are also beginning to align with international frameworks, such as the International Financial Reporting Standards (IFRS), which adds another layer of complexity for businesses that operate across borders.
Companies need to ensure their reporting is not only accurate but also aligns with both Chinese and international standards. This creates a demand for robust reporting tools that integrate seamlessly with various regulatory standards, including interoperability between global and local standards like IFRS, businesses can maintain compliance without the heavy administrative burden.
3. Balancing Voluntary Standards and Supply Chain Regulations
Also considered during the event was the growing importance of voluntary standards and ratings, such as Ecovadis, CDP and Sustainalytics in complementing formal regulatory frameworks. Many businesses in APAC are turning to these standards to demonstrate their sustainability credentials and enhance their reputations.
The discussions also focused on the necessity of preparing for supply chain regulations, including the LkSG (German Supply Chain Due Diligence Act), CSDDD, and EUDR. Companies are increasingly expected to perform due diligence across their supply chains, ensuring that their suppliers adhere to environmental and human rights standards.
To effectively navigate these complexities businesses might benefit from using advanced data management solutions to bring together ESG metrics in a cohesive reporting structure.
4. Data Strategies for Sustainability Compliance
A recurring theme throughout the discussions was the importance of managing vast amounts of sustainability data effectively. As regulatory demands increase, so does the need for businesses to track and report on a wide array of sustainability metrics. This includes everything from environmental impact data to social and supplier information, all of which must be compiled into reports that meet regional and global standards.
Alex Hardwick, Director of Sustainability Planning and Enablement at Cority, highlighted how developing a robust data strategy is essential for organizations looking to stay ahead of these demands. The focus should be on adopting systems that can handle the scale and complexity of sustainability reporting, ensuring data integrity and compliance. Integrated data management solutions allow organizations to streamline their reporting processes while staying compliant with evolving regulations, a need that can be met through tools designed with these challenges in mind.
Cority’s data management solutions offer advanced strategies for integrating disparate data streams, ensuring that businesses can streamline their reporting processes while maintaining accuracy and compliance. Talk to us to learn how you can confidently navigate these complex regulatory frameworks, ensuring compliance while driving sustainable development.
