How does the CSRD impact my EV charging business?

As of 2024, the European Union’s Corporate Sustainability Reporting Directive (CSRD) will introduce mandatory reporting obligations related to their impact on people and the environment for a broad range of companies in the EU. Companies in scope will be required to disclose what they see as the risks and opportunities arising from social and environmental issues and the impact of their activities on people and the environment. This helps investors, civil society organizations, consumers, and other stakeholders evaluate companies’ sustainability performance as part of the European Green Deal. Let’s dive in to see why it matters for CPOs. 

Introduction

Firstly, it widens the scope of businesses subject to mandatory non-financial reporting to include large private companies and some SMEs.The new rules ensure that investors and other stakeholders have access to the information they need to assess the impact of companies on people and the environment and for investors to assess financial risks and opportunities arising from climate change and other sustainability issues.

Moreover, the new rules increase the amount of information to be disclosed to stakeholders by introducing the European Sustainability Reporting Standards (ESRS). All this leads to higher levels of scrutiny, particularly in the context of operational quality within the supply chain. 

Subsequently, working with a vendor that strictly adheres to sustainable practices and has a proven ESG track record becomes imperative.

Scope

According to the European Commission, nearly 50,000 European businesses will be subject to mandatory reporting. The requirements will apply to:

• Large public interest companies with more than 500 employees
• Large EU companies with more than 250 employees, EUR 40 million+ turnover, or EUR 20 million+ total assets (two of three criteria met)
• SMEs listed on regulated markets
• Large unlisted foreign companies with a net turnover of EUR 150M in the EU and at least one subsidiary/branch in the EU

The disclosure requirements for all of these categories of businesses will be slowly phased in over the coming several years. 

The CSRD impact on EV charging operations

The CSRD’s emphasis on reporting environmental impacts aligns with the operators’ efforts to reduce carbon emissions and contribute to a cleaner transport ecosystem.

The directive includes requirements to report on supply chain due diligence. Large-scale EV charge point operators would need to assess their supply chain practices, such as sourcing of materials for charging infrastructure, to ensure they align with sustainability goals and ethical standards. The same goes with regards to selecting other partners, including software vendors.

The CSRD’s focus on non-financial reporting, including environmental performance, could enhance the attractiveness of CPOs to ESG-focused investors and lenders.

The emphasis of CSRD on stakeholder engagement in sustainability matters. EV charging point operators would benefit from providing flexible tariffs and equitable access to charging. Further engaging with customers on sustainability initiatives like renewable charging and carbon offsetting goes in the same direction.

Bottom line – it’s all about data

Larger CPOs would need to integrate data related to their EV charging operations into their ESG reporting. This could involve reporting on the number of charging points, the energy consumption of charging infrastructure, and the carbon emissions reduction achieved through EV charging.

To this end, CPOs need robust data management systems to accurately track and report their sustainability metrics. 

Where and how AMPECO comes into play

Among these latest regulatory developments, the choice of partnerships is important. AMPECO has a proven ESG track record – B Corp certified business with an excellent score since July 2023 and rated EcoVadis Silver since Oct 2023.

AMPECO’s CPMS can generate customizable reports and dashboards that showcase EV charging-related sustainability metrics. These reports can be aligned with CSRD requirements, making tracking and communicating environmental and social performance easier.

As part of our customers’ value chain, AMPECO fully supports all disclosures related to social matters that will be needed in the very near future. We already have practices in place that support the European Sustainability Reporting Standards (ESRS) Key Performance Indicators (KPIs) and can provide respective data when requested. 

In addition to facilitating compliance with the CSRD, AMPECO is also attentive to other global sustainability initiatives. The UK’s recent introduction of the Sustainability Disclosure Standards (SDS) echoes the EU’s ESRS in many aspects. Both align with the broader, non-binding guidelines set by the International Sustainability Standards Board (ISSB). Furthermore, the United States Securities and Exchange Commission’s (SEC) climate disclosure rules for major publicly listed companies are also on our radar. We continuously update our systems and practices to stay in step with these evolving standards, ensuring our clients are well-equipped to meet diverse international requirements.