CSRD: Opportunity for innovation through the Corporate Sustainability Reporting Directive

It’s estimated that by 2030, sustainable investing will grow from 8 to 30 trillion globally – that’s huge! Therefore, legislative changes such as

Corporate Sustainability Reporting Directive (CSRD)

should be seen as an opportunity. Despite this, many companies are stuck in the weeds of navigating these legislations step-by-step, ensuring their existing business remains compliant.

The challenge is that these legislations aren’t about small changes – when put together, they’re about forcing transformation and innovation to create a circular economy. By being proactive, companies have the time to innovate, prepare and implement. If you’re too slow, however, the rate of change will be too great, and you might end up as the next Nokia.

One doesn’t need to look far to find examples of companies that have succeeded as a

First Mover

and successfully identified the new market opportunities these directives are creating.

Let's look at fashion, an industry with over 16 directive pieces in the pipeline, with one of the most radical being the

Right to Repair

. If passed, this will mean that consumers have the legal right to claim repairs for a certain period. Now, this can be seen as a problem - for fast fashion, who rely on low quality, low margins, and over-consumption, if passed, this directive will kill their core business model, which would be rendered no longer financially viable - low prices and high consumption doesn't work if you need to repair all your products in 8 months when they fall apart.

OR, the Right to Repair can be seen as an opportunity. Essentially, this directive means that the repair market will be massive. Every piece of clothing you buy can be taken somewhere for repair, and the brand will bear all or some of the cost. Essentially, repairing will be as profitable as selling clothes.

However, the reality is that companies are already positioning themselves to capture this new market. Sojo, for example, is a UK company that has partnered with high-end brands like Mother of Pearl to provide repair and alteration services to their customers, improving loyalty and making these companies compliant.

As first movers, Sojo will have the time to develop and position themselves. By the time companies realise that they need to shift to both remain compliant and maintain their profitability, they’ll find that they’ve been beaten to the party.

It's about bridging the gap between innovation and sustainability legislation. At EGGS, part of Sopra Steria, we help our clients bridge the gap between regulatory understanding and tangible innovation, shaping the next chapter in sustainability. Through design-driven innovation, we translate directives into business opportunities for our clients teamed up with our colleagues in Sopra Steria Footprint. Together, we help businesses ensure compliance and seize opportunities presented by legislation like the CSRD.