In the face of today’s challenging and ever-changing legislative landscape, brands and retailers require reliable tools to support them in meeting compliance requirements. In short, The Corporate Sustainability Reporting Directive (CSRD) mandates the development of detailed reporting standards, known as the European Sustainability Reporting Standards (ESRS). In 2025, companies subject to reporting will be required to comply with CSRD by reporting 2024 data. The CSRD amends and strengthens the existing Non-Financial Reporting Directive (NFRD). Compared to NFRD the CSRD reporting process will be more complex, comprehensive, and stringent.

Cascale? Ready for Regulation 

The Cascale team has been readying for regulation with its Higg Index toolset.

Although not designed to be a comprehensive compliance sweep, the Higg Brand and Retail Module answers many of the ESRS reporting requirements while providing companies detailed mapping against ESRS topical standards. Each topical standard includes disclosure requirements that organizations must follow to report on their sustainability impacts, risks, opportunities, and performance related to the specific topic.

Regarding Cascale’s recently published Higg BRM x CSRD white paper, Maravillas Rodriguez Zarco, senior director, Higg Index strategy and operations at Cascale said, “We are dedicated to ensuring the latest version of Higg BRM is fit for purpose in supporting our members in their compliance journeys, especially as the white paper has shown for the European Union’s Corporate Sustainability Reporting Directive (CSRD). As it exists today, we know the tool is a valuable asset for users that have to report following ESRS. The Higg BRM will continue to play a pivotal role in the regulatory compliance process. With the Higg BRM, consumer goods companies can not only meet relevant regulatory requirements but elevate their sustainability performance.”

Companies Must Double Down

In their compliance journey, companies will need to undertake a double materiality assessment, per EU law.

The double materiality assessment means a company has to conduct an impact materiality assessment and a financial materiality assessment, showcasing clear consideration to people and the planet.

The Higg BRM specifically supports users with its impact materiality assessment The ESRS also acknowledges the importance of “entity-specific disclosures.” Uniquely, the Higg BRM presents an opportunity to assist users in disclosing industry-specific material topics with the necessary depth and granularity. These are nuanced topics that the agnostic ESRS may not cover adequately.

In the future, the Higg BRM team will further enhance tool alignment with the CSRD and other relevant regulations. By identifying and bridging gaps, the Higg BRM will further support stakeholders in achieving a more structured and transparent approach to sustainability reporting.