The CSRD will apply to all listed companies and those that meet two of the following three criteria:

1: More than 250 employees
2: More than 40 million euros in sales per year
3: More than 20 million euros on the balance sheet

For companies covered by the directive, it amounts to preparing as early as 2022 so that they are set up to collect the necessary data by Jan. 1, 2023. So start preparing in time.

Consequences for you as an employer

European Union requirements are an important contribution to greater quality and comparability of sustainability reports. In addition to financial information on intangibles, the directive also includes non-financial indicators, such as social capital. This includes the sustainable employability of employees.

As a result, companies must make concrete in the financial statements that they are paying attention to the sustainable employability of their employees, in what way they are improving sustainable employability and what the tangible results of the efforts and initiatives are.

As an employer, this puts a lot of work on you, and it is essential to set up your organization for this new directive in advance so that you can start collecting data in a timely manner. This requires good cooperation between Finance and HR. Measure outcomes of sustainable employability interventions deployed and collect relevant data for reporting.

Report sustainable employability use in positioning

With today’s tight labor market, this extensive reporting also provides an opportunity to position yourself as an attractive employer through employer branding.

Employer branding is a tool that enables you as an employer to engage, fascinate and engage employees and recruit potential new employees. Here it is very important that your external message matches the internal situation within your company. Emphasize what makes your organization unique and what values and mission are being pursued.

Attractive employers have a good idea of who they are, where they are and where they are going. And this image is felt and carried throughout the organization.

Based on your positioning as an employer, define a set of critical performance indicators (KPIs) in your reporting that make sustainable employability efforts and initiatives measurable. These include:

• KPIs related to physical vitality: For example, employees’ energy levels, the amount and opportunities for exercise, and the amount and degree of sleep.
• KPIs related to mental vitality: For example, opportunities for learning and development, the degree of autonomy (the freedom employees have to perform work as they see fit), commitment to the organization and employees’ ability to change.
• KPIs on the social aspects of work: These aspects now play an even bigger role than they normally do already. The effects of corona and the search for the right form of hybrid working requires an ongoing dialogue between employer and employee. This could include customized agreements that employees make with their supervisors that make the work fit well with the employee’s personal situation and ambition and what the organization considers important.

Want to know what’s best for your organization?

Our specialists are happy to help you in the complex playing field of strategic HR management, social security and sustainable employability. If you would like to know more about your specific situation or need advice in reporting on the topic of sustainable employability in the financial statements, please contact our specialists.