The World Economic Forum predicts that by 2030 global freshwater demand will exceed supply by 40%. In many countries, widespread water scarcity is already affecting communities and industry. With this in mind, the European Commission introduced the Corporate Sustainability Reporting Directive (CSRD) setting new standards that place water use and reuse at the heart of corporate sustainability goals.
What is the CSRD?
In January 2023, the CSRD came into force, which modernised the rules governing what information companies are required to disclose about the social and environmental impacts of their activities. Under the directive, a broader range of companies, including listed SMEs and non-EU companies that generate over €150 million on the EU market, will have to provide accurate and standardised reporting.
In addition to extending the scope of the companies that are required to complete reporting, the CSRD also increases the breadth of environmental factors that must be reported on, such as pollution, waste, biodiversity and water.
The role of water in CSRD reporting
Companies that are subject to the CSRD will have to report on activities in accordance with European Sustainability Reporting Standards (ESRS), regardless of which sector they operate. Reporting related to water is covered under ESRS E3: Water and Marine Resource and encompasses both surface and groundwater. It requires disclosure of:
- water consumption
- water withdrawals
- water discharges
That said, reporting on water also falls under several different standards including climate change, pollution, biodiversity and ecosystems, resource use and circular economy (ESRS E1, E2, E4 and E5).
As a result of this, monitoring industrial water use and discharge plays a key role in the reporting process and will therefore require serious thought from companies in order to comply.
The growing importance of reporting
Although reporting is often seen as an environmental measure, CSRD reporting is playing an increasingly important role in fostering relationships for sustainable supply chains and building trust with stakeholders. Whilst implementing the CSRD will incur some initial costs for companies, the EU commission has stated that it is designed to save companies money in the medium to long-term. This is because investors and stakeholders are increasingly demanding thorough reporting that currently uses overlapping standards and frameworks. The goal of the CSRD is to streamline the process and set a new standard that makes comparison and compliance easier.
The CSRD is also intended to actively contribute to established international initiatives such as the Global Reporting Initiative (GRI), which aims to streamline reporting for companies, whilst also ensuring that reporting within the EU matches the ambitions of the European Green Deal.
Veolia’s technology
At Veolia we have a commitment to promoting decarbonisation, depollution, resource saving and regeneration, but we also advocate for increased transparency. Whilst all of our technologies enable the efficient use and reuse of water, it is our digital monitoring system – Hubgrade – that most efficiently enables companies to produce the accurate and unbiased reporting required by the directive.
This advanced digital platform is designed to enable real-time monitoring of water and wastewater systems as well as performance optimisation and, crucially, data collection. This data can then form the basis of the ESRS reporting, allowing companies to meet and exceed their new obligations.
The integration of Hubgrade into our market-leading water treatment technologies not only enables customers to take an active approach to water reuse and management, but it also allows them to demonstrate and showcase their commitment to sustainability and transparent reporting. Klaipeda WWTP, in Lithuania, struggled with optimizing nitrogen removal for years. The Hubgrade Wastewater Plant Performance digital twin solution utilizes predictive models, AI, and real-time control to optimize oxygen levels and alternate between nitrification and denitrification phases. This approach minimizes energy consumption, the formation and emission of N2O while enhancing biological treatment. By integrating the Hubgrade system, Klaipeda was able to decrease Total-Nitrogen by 14%, despite a 28% increase in load and reduce their environmental footprint by more than 2000 tCO2 -eq per year.
🔗 With our forward-thinking approach to innovation, compliance and reporting, we are the ideal partner to deliver and exceed the new CSRD requirements. Click here to find out more about Hubgrade, or here to contact a member of our sales team.
