New legislation requires more companies than ever before to think seriously about their sustainability efforts. We look at what these laws are, who they affect and what businesses can do to reduce their overall impact on the environment.
On January 5th, 2023, The Corporate Sustainability Reporting Directive (CSRD) came into force in the EU. This legislation is a new set of rules designed to enhance the social and environmental information (collectively known as ESG) that companies must report on.
Covering a wide range of issues including treatment of employees, respect for human rights and anti-corruption, at its heart is new legislation on environmental concerns. The CSRD is the next step in transforming the European Union into a “modern resource-efficient economy with no net emissions of greenhouse gases by 2050”, in line with the UN’s 2050 carbon emissions goal.
The CSRD will directly affect around 50,000 companies in the EU. Businesses that meet two of the following three conditions will have to comply:
Additionally, non-EU companies that have an EU presence will also have to comply if their turnover is above €150 million.
Smaller businesses should not switch off though. It is likely that some if not all of these measures will also eventually apply to small and medium sized businesses (SMEs). In fact, in 2026, CSRD will apply to listed SMEs.
Every affected business must now provide an accurate assessment of its carbon footprint. Every aspect of their company - the products they manufacture, the services they provide, the travel of their employees, and the equipment and furniture they have in their workspaces – must be accounted for.
The initial goal is to gather data – to truly know the impact of major business. Once established, this data will create a culture of transparency, and initiate competition between businesses to drive down their carbon emissions. Businesses with low carbon emissions will not only be attractive to investors and stakeholders but to their customers too.
Different strategies will work for different organisations depending on the type of work they do, but there are some central elements any business can follow:
Switch to a renewable energy provider – can be quick and easy, and can potentially have a big impact on your company's emissions
A major element of many organisations is their office space and this will need to be included in any carbon emission reporting. Furniture is an integral part of this, meaning businesses will firstly need to accurately report on the environmental footprint of their furniture, and secondly, work towards reducing this impact.
Flokk is Europe’s leading manufacturer of sustainable seating, acoustic solutions, and furniture accessories. We take our commitment to the environment seriously, leading by example and setting ambitious goals to reduce our own carbon footprint whilst designing furniture to help others achieve their own goals.
By using fewer natural resources, an ever-increasing share of recycled materials, renewable energy sources and following circular design principles, we design and manufacture a range of furniture with limited environmental impact.
What’s more, we are proud to be the first office furniture manufacturer to adopt Environmental Product Declarations (EPDs) with a growing number of our products certified. EPDs provide an independently verified calculation of the Carbon emissions generated when creating our furniture, making it easy for businesses to add to their calculations.
If you are keen to know more about how Flokk can help your organisation achieve their sustainability aims, contact your local office.
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