New guide to help Danish boards navigate CSRD

The Center for Strategic CSRD has published a guide with 10 recommendations for the Danish boards regarding the EU's requirements for sustainability reporting.

In light of the new EU requirements for corporate sustainability reporting, the Center for Strategic CSRD has released a guide designed to support Danish boards in navigating the new, extensive regulations through 10 specific recommendations.

With the EU's corporate sustainability reporting directive (CSRD), it is now a requirement that companies are assessed not only on their financial performance but also on their environmental and social impacts.

The new CSRD regulation, which was recently passed in the Danish Parliament, significantly expands the role and responsibilities of boards.

"The new framework conditions from the EU present a prime opportunity for companies – and particularly for boards – to clarify their ambitions in the area of sustainability and to make clear what they want to stand for as a business," says Linda Nielsen, chairperson of the advisory board at the Center for Strategic CSRD and a law professor at the University of Copenhagen.

Based on this, the Center for Strategic CSRD – founded by EY and Axcelfuture – is releasing a guide to help Danish boards navigate the new requirements.

"The new guide should be seen as a tool for how boards can approach the work with the new framework conditions so that they do not become a hindrance. The legal requirements mean that the roles and responsibilities of the board are changing significantly. Among other things, the board will be held accountable for and may be scrutinized for incorrect information in a sustainability report. There is also a significant task for boards to lead the way and show a willingness to work even more strategically with sustainability," says Jan C. Olsen, CEO of EY Denmark.

10 recommendations for the Board

The board guide offers 10 concrete recommendations on how boards can adapt to the new requirements and ensure that they are properly informed and prepared to be accountable for their reporting.

Lars Rasmussen, a member of the advisory board at the Center for Strategic CSRD and chairperson of the board for companies including Lundbeck and the committee for good corporate governance, emphasizes the importance of board engagement:

"CSRD is more than just new regulation; it is a game changer that will transform the way Danish companies operate. Boards must be proactive and responsible for the company's sustainability efforts. In other words, CSRD is an opportunity for the board to set ambitious sustainability goals and to empower management to prioritize environmental and social issues."

Avoid panic over data

The guide's recommendations provide inspiration on how boards can link CSRD to their strategy, how stakeholders can be involved in the work, and how companies can avoid going into "data point panic" over the approximately 1,100 data points contained in the standards.

The board guide is aimed at all Danish companies that are continuously subject to CSRD and serves as a tool to help prepare boards for the new requirements.

With the guide, boards can find assistance in taking important steps toward a more sustainable future for their companies and for society as a whole.

For more information about the guide and how boards can approach the work with CSRD, visit strategiskCSRD.dk.