On the road to a more sustainable and responsible economy, transparency has become a key factor. In this context, the Corporate Sustainability Reporting Directive(CSRD) represents a milestone in European regulation. Approved in November 2022, the CSRD establishes new requirements for sustainability reporting by companies, promoting greater consistency, comparability and quality in the disclosure of non-financial information.

This new framework has significant implications for the tourism sector, an industry that plays a crucial role in global economic development and, at the same time, faces increasing pressures to reduce its environmental and social impact. In this article we will explore the main features of the CSRD, what changes it entails with respect to the previous Directive (NFRD), which companies are subject to it and how tourism companies can prepare themselves to meet these new standards.

What is CSRD?

The CSRD is a directive adopted by the European Union that aims to improve transparency in sustainability. It introduces stricter reporting requirements related to the environmental, social and governance (ESG) impact of companies. This framework also seeks to align with international principles, such as the Sustainable Development Goals (SDGs) and the IFRS Sustainability Reporting Standards.

The CSRD significantly expands the scope of its predecessor, the Non-Financial Reporting Directive (NFRD). In addition to covering more companies, it introduces a more detailed and rigorous approach to ensure the reliability and verification of the data provided.

Main CSRD developments

Expansion of the scope of application

Under the NFRD, only large public companies with more than 500 employees were required to disclose non-financial information. The CSRD, on the other hand, includes:

  • Large companies: All those that meet at least two of the following criteria:
    • More than 250 employees.
    • Turnover in excess of 40 million euros.
    • A balance sheet exceeding 20 million euros.
  • Listed companies: All small and medium-sized companies (SMEs) listed on regulated markets, with limited exceptions.
  • Foreign companies: Those operating in the EU and generating revenues in excess of 150 million euros.

This has a direct impact on the tourism sector, especially hotel chains, large tour operators and tourism-related transportation companies, which must now align their sustainability management with the new standards.

2. More detailed reporting and uniform standards

The CSRD introduces the European Sustainability Reporting Standards (ESRS). These standards provide clear guidelines on what information should be included, covering areas such as:

  • Climate change.
  • Human rights.
  • Diversity and inclusion.
  • Corporate governance.

For the tourism sector, this means that they will have to report aspects such as:

  • Carbon footprint of its operations and services.
  • Impact on local communities.
  • Hiring practices and working conditions.
  • Biodiversity protection efforts.

3. Mandatory verification

To ensure the reliability of the reports, the CSRD requires that the information disclosed be audited by third parties. This reinforces confidence in the data provided and ensures that it complies with established standards.

4. Integration in financial reports

The CSRD requires sustainability reports to be part of companies’ annual reports, promoting greater consistency between financial and non-financial information.

Impact on tourism companies

The implementation of CSRD implies a significant change in the way tourism companies manage and report their sustainability information. These are some of the main challenges and implications:

  • Increased administrative burden: Tourism companies must collect and process a greater amount of data, such as energy consumption in hotels or emissions associated with their customers’ trips.
  • Reputational risk: Insufficient or incorrect disclosure can negatively affect the perception of investors, customers and other stakeholders. For example, tourists are increasingly attentive to the sustainable practices of the destinations they choose.
  • Leadership opportunities: Companies that proactively adopt these standards can differentiate themselves as sustainability leaders within the tourism sector, attracting conscious consumers and responsible investors.

How to prepare for CSRD

1. Perform an initial diagnosis

It is essential to assess the current state of the company’s ESG information and its degree of alignment with CSRD requirements. Identifying gaps will allow prioritizing actions. In the case of the tourism sector, this includes assessing impacts such as waste management, water consumption and the relationship with local communities.

Implement data management systems

Having digital tools to collect, analyze and report ESG data will be key to comply with the new standards. Technological solutions also facilitate the verification of information. In tourism, platforms that measure the environmental footprint of the services offered can be especially useful.

3. Staff training

Successful transition to the new standards depends on internal teams understanding and embracing the new requirements. Providing specialized training in sustainability and ESG regulations is essential, especially for operations, destination management and marketing teams.

4. Collaborate with external experts

Having the support of specialized consulting firms or external auditors can be of great help to ensure compliance with the CSRD and improve the quality of reports. This is key in a sector as complex and diverse as the tourism industry.

The CSRD marks a turning point in the regulation of corporate sustainability in Europe. While it represents a significant challenge, it also represents a unique opportunity for tourism businesses to demonstrate their commitment to sustainable development and strengthen their role as responsible actors in society.

Those organizations in the tourism sector that prepare themselves adequately will not only comply with legal requirements, but will also gain the trust of their stakeholders and actively contribute to the transition to a fairer and more sustainable economy. Now more than ever, transparency and accountability are essential to building a better future.

Is your company ready to face this change? At Bioscore Sustainability we help you implement the new CSRD requirements efficiently and tailored to the needs of the tourism sector. Contact us today and transform sustainability into your competitive advantage.