With European regulations taking effect in 2024 and ultimately affecting 50,000+ companies, finance professionals need to take action and ensure they have sufficient plans in place. Our new ESG handbook outlines the next steps.
Upcoming European rules on environmental, social, and governance (ESG) reporting are expected to impact 50,000 companies. A new report by Payhawk shows the urgent need for finance teams to take action and understand the role they have to play.
The ESG reporting: Priorities for Finance Teams ebook by Payhawk, outlines the critical role that finance professionals have in integrating ESG considerations into financial decision-making, risk management reporting, stakeholder engagement and best practice within their companies.
The ebook's release comes as the Corporate Sustainability Reporting Directive (CSRD) takes effect, which updates existing rules and requires companies operating in the European Economic Area to publish data in 2025 from the 2024 financial year. The ESG reporting rules will initially target firms with over 500 employees and ultimately could affect 50,000 companies. The aim of this legislation is to bring standardization and transparency on how companies report their ESG metrics, much in the same way they report their financial results for the benefit of investors and other stakeholders.
“Traditionally, finance teams have been focused on maximizing profits and accurately reporting their financials. These upcoming regulations represent a step change for the industry, and finance professionals will have to adapt to reporting on every activity and investment associated with ESG reports. That’s why we have created this ebook – to guide them on that journey,” said Hristo Borisov, CEO and Co-Founder of Payhawk.
The ebook outlines the importance and relevance of the upcoming ESG reporting rules and how finance teams will have increased responsibilities in terms of risk management, delivering cost savings, improving access to capital, ensuring regulatory compliance, and managing stakeholder expectations.
“The ebook highlights the need for finance teams to have a plan and a timescale to meet these new requirements,” said Borisov. “Finance teams will need to evolve their function to achieve a high level of ESG reporting. Without the right tools in place, this task will be almost impossible.”
Corporate spending is critical to ESG reporting, and many companies are relying on outdated systems that can’t answer key questions about the sustainability of suppliers or certain purchasing decisions, for example. ESG is an evolving field, and the best action finance professionals can take is to make measuring and reporting as easy as possible with intelligent technology and smart planning.
Get the full guide to learn more.
The Payhawk Editorial Team consists seasoned finance professionals boasting years of experience in spend management, digital transformation, and the finance profession. We're dedicated to delivering insightful content to empower your financial journey.