{"id":4003,"date":"2024-06-17T09:41:22","date_gmt":"2024-06-17T09:41:22","guid":{"rendered":"https:\/\/verso.de\/blog\/csrd-and-supply-chain-what-purchasing-needs-to-consider\/"},"modified":"2026-02-24T15:06:20","modified_gmt":"2026-02-24T15:06:20","slug":"csrd-and-supply-chain-what-purchasing-needs-to-consider","status":"publish","type":"post","link":"https:\/\/verso.de\/en\/blog\/csrd-and-supply-chain-what-purchasing-needs-to-consider\/","title":{"rendered":"CSRD and supply chain: What purchasing needs to consider"},"content":{"rendered":"\t
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17.06.2024<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t

CSRD and supply chain: What procurement needs to consider <\/h1>\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\tThe CSRD with its ESRS standards is not only a lot of work, it also has a major impact on companies: This is because you have to make extensive ESG disclosures – and not only look at your own company, but also at the supply chain.\r\nRead here what purchasing departments need to consider and what opportunities and risks arise from the EU directive. \t\t\t\t\t\t\t<\/p>\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/section>\n\t\n\n\n\t

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The CSRD<\/a> (Corporate Sustainability Reporting Directive) has applied to the first companies since January 2024, and others are gradually being added. Ultimately, around 50,000 companies in Europe will be obliged to publish a report with comprehensive information on ESG (environmental, social and governance) issues.<\/p>\n

The ESRS<\/a>, the European Sustainability Reporting Standards, were also introduced with the CSRD. For the first time in the EU, they provide a standardized framework for the preparation of a sustainability report – in simple terms: which ESG information is required and in what form it must be reported.<\/p>\n

It is important to note that the reporting obligation not only relates to the company itself, but also extends to the entire value chain<\/strong>. In this blog post, we look at the upstream value chain – i.e. the supply chain. And this is where companies subject to CSRD reporting requirements can quickly run into problems: they need a lot of information from their suppliers and the data situation is often inadequate – according to the Bertelsmann Stiftung’s Sustainability Transformation Monitor 2024<\/a>. With VERSO, you can master this challenge. Our Supply Chain Hub<\/a> creates transparency in the supply chain and enables you to analyze risks, develop targeted measures and comply with reporting obligations. We will now take a closer look at these disclosure requirements within the framework of the CSRD and the impact on purchasing.<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n\t

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CSRD and supply chain: What needs to be reported? <\/h2>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t

The CSRD demands a lot from companies: the ESRS comprises around 1150 data points and over 100 of these relate to the supply chain. Purchasing is therefore an important player in the reporting process.<\/p>\n

The information involved can be roughly summarized as follows: The ESG report must contain information on environmental and social IROs (impacts, risks and opportunities) in the supply chain as well as measures related to the IROs. If your company is affected by the LkSG, you will probably recognize some disclosure requirements and can realize synergies: This is because some BAFA requirements overlap with the ESRS.<\/p>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\n\t\t<\/div>\n\t<\/section>\n\n\t\n\n\n\t

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But what does this mean in detail? To answer this question, let’s take a closer look at some ESRS standards and clarify how they relate to the supply chain.<\/p>\n

ESRS E1 – the climate protection standard<\/h3>\n

The name says it all: ESRS E1<\/a> is about climate protection – in your company and in your supply chain<\/span>. Your company must therefore not only disclose its own greenhouse gas emissions, but also the CO2 emissions in the upstream and downstream value chain – i.e. in Scope 3. Incidentally, the majority of companies generate the most emissions in this category.
\nE1 also requires companies to set themselves climate targets. Transparency about the targets and measures of their own suppliers is crucial in this respect.<\/p>\n

ESRS E5 – Resource utilization and circular economy<\/h3>\n

The supply chain naturally plays an important role in ESRS E5<\/a>, as many resources are obtained or processed here. For example, the CSRD asks for:<\/p>\n