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SOC Attestation
Independent opinion attesting to the commitment of service providers to sound internal controls
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Audit and review of financial statements
Credibility of your company's accounting activities in accordance with the legislation in force
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Assurance of Non-Financial Reports
It aims to meet the needs of the business, being able to contemplate different bases and sectorial and global development guidelines
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Assurance of Integrated Reporting and Sustainability Reports
Differential for rendering accounts and demonstrating the engagement of organizations in relation to sustainable practices and their generation of value
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Assistance in accounting definitions
Quality, comparability and transparency of financial information in your company
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Accounting, Labor and Tax Compliance
Permanent diagnostics and advice to raise the level of controls and mitigate risks
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Pre-Audit Diagnosis
Diagnostics capable of offering support according to the purpose and needs of the business
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Assessment reports for consolidations, spin-offs, and mergers
Technical evaluation of net assets at book value or of net assets adjusted to market prices
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Capital Markets
Complete analysis and preparation for strategic fundraising operations
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Business Consulting
Approaches compatible with technologies that support corporate decision-making and stimulate innovation
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Strategy & Transactions
Performance of operations and capital structure to enable more efficient corporate transactions
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FIDS – Forensic, Investigation & Dispute Services
Identification, protection and prevention of risks to preserve business integrity and security
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Risk and Compliance - BRS
Risk management, process improvement to achieve strategic objectives
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Business Restructuring and Recovery
Assertive plans and agile actions to recover your company's strategy and performance
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Global Mobility Services
International mobility programs in compliance with local tax legislation and optimized costs
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Home page
Financial Statements
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Transfer Pricing
Review or elaboration of calculations that allow the most assertive compliance in operations abroad
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Labor & Social Security
Identification of existing risks and opportunities according to the current moment and future perspectives
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Direct tax
Agile strategies for complying with laws and enabling regional and sectoral tax incentives
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Indirect tax
Specialized support capable of increasing legal certainty involving different laws and jurisprudence
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International Tax
Analysis and planning of scenarios in different jurisdictions, with integration into the Brazilian scenario
In April 2021, the European Commission presented the proposal for this Directive, which requires mandatory reporting on environmental and social impact of business activities, as well as independent assurance on the non-financial information that has been presented. The Directive aims to increase the quality of information and transparency about sustainability matters of companies, and thereby support the transition to a sustainable economy following the Paris climate agreement and EU Green Deal. For many companies, the proposed CSRD timeline means they need to start preparing in order to be ready by 2024 and meet the CSRD obligations.
Who does the CSRD apply to?
The CSRD is an extension of the existing European directive on sustainability reporting: the Non-Financial Reporting Directive (NFRD). This NFRD came into effect in 2018 and requires public interest companies (such as banks, insurers and publicly traded companies) with more than 500 employees to report on how they deal with issues such as environmental pollution, social responsibility, human rights and diversity.
The CSRD significantly broadens the scope of entities that will have to report. It will capture all listed entities, as well as to large companies that meet 2 of the following 3 criteria:
- More than 250 employees
- More than €40 million net turnover
- More than €20 million on the statement of financial position.
Latest indications are the CSRD reporting obligations will apply to at least 50,000 companies operating in Europe, but we anticipate many companies below those thresholds will also implement these requirements. This will enable them to fulfil the expectations of their largest customers who will almost certainly be required to report under this Directive.
What will the reporting requirements be under CSRD?
The format and exact criteria of what CSRD will require is still under development. However, it is highly likely the reporting must contain the following components:
- An annual report that will make disclosures on sustainability topics that are material to the company relating to, as a minimum, environmental, social and employee matters, diversity in company board, respect for human rights, anticorruption and bribery matters. Disclosures of other material sustainability topics will be required to cover matters such as strategy, governance, policies, processes, systems, KPIs, results and the achievement of sustainability targets.
- Material sustainability topics will be based on the double materiality principle:
- Which sustainability risks and opportunities may result in financial materiality for the company (eg raw materials scarcity or production disruptions due to extreme weather conditions, but also transition risks such as reputational damage), and
- Which material impacts the company has on people and environment (such as loss of biodiversity or human rights violations in the value chain).
- Information about the company's long-term sustainability goals, and progress toward those goals (so forward-looking information as opposed to just results in a given year).
- The reporting will be linked in line with other recent European regulations, for example, the Sustainable Finance Disclosure Regulation (SFDR) and EU Taxonomy.
In addition to substantive requirements, a limited assurance on the report by an accountant is required as well as making the report available in electronic (XHTML) format. These requirements are expected to make an important contribution to increasing the quality and comparability of sustainability reports.
Steps to be taken - infographic
In order to prepare for CSRD reporting from 2024 onwards, companies should now be familiarising themselves with CSRD and developing their sustainability strategy on how they are going to meet the reporting requirements set out in the Directive. Performing a gap analysis against the CSRD requirements to assess the amount of change that will be required will be essential to this process. Companies will need to develop and set up relevant policies and systems and develop their indicator framework, to be able to manage their KPIs, benchmarks and targets.
This infographic has been developed by our highly experienced team at Sinzer, part of Grant Thornton Netherlands, and summarises some steps to take to be ready for these requirements.
How can Grant Thornton Brasil support your company?
For more details on how we can support your company in this process, learn about our approaches and contact our experts.