The European Union’s Corporate Sustainability Reporting Directive (CSRD) took effect on 5 January 2023 and affected businesses must adhere to the new regulations starting with the 2024 financial year – blockchain can help implement the new regulations.
According to KPMG, the CSRD will amend the existing Non-Financial Reporting Directive (NFRD) and substantially increase reporting requirements on the companies falling within its scope in its efforts to expand the sustainability information for users.
The proposed directive will also entail a dramatic increase in the number of companies subject to the EU sustainability reporting requirements.
The NFRD, which is currently in place for reporting on sustainability information, covers approximately 11,700 companies and groups across the EU. The CSRD is expected to increase the number of firms subject to EU sustainability reporting requirements to approximately 49,000.
The BSV blockchain and mintBlue can help
While these reporting requirements are onerous, help is at hand as software development company mintBlue provides blockchain-based solutions for accurate and transparent sustainability reporting.
Speaking to CoinGeek, Niels van den Bergh (CEO of mintBlue) said that mintBlue can assist companies with CSRD by providing blockchain-based solutions for accurate and transparent sustainability reporting.
‘Our technology tracks emissions in real-time, ensures data integrity, and verifies compliance with sustainability standards. We enable companies to securely share and exchange information without losing control, this is key in creating interoperability in the supply chain and exchanging data required for reporting,’ he said.
‘For example, IKEA could use blockchain technology to track sustainability metrics across its supply chain, from raw materials to the final product. Each step recorded on the blockchain would provide a transparent and unchangeable record, simplifying compliance with CSRD.’
Van den Bergh added that businesses can use blockchain technology to meet CSRD requirements and enhance transparency and stakeholder trust. While it’s a big shift, the benefits of increased transparency and trust are substantial.
The BSV blockchain – In its own class
The BSV blockchain stands out from other public blockchains by being vastly more scalable and efficient. Its low transaction fees enable companies to manage a high volume of transactions and data without the concern of network congestion.
The BSV blockchain’s stable protocol and fixed block size offer a dependable and predictable environment, crucial for enterprise-level applications. Its emphasis on data management and security allows businesses to store, manage, and verify large amounts of data transparently and immutably. Additionally, its dedication to regulatory compliance and industry standards builds trust and provides legal certainty.
Learn more about how the BSV blockchain can help your business here.
