Navigating the Green Horizon: CSRD Scope 3 Reporting for European Financial Services
The European Union's Corporate Sustainability Reporting Directive (CSRD) is revolutionizing sustainability reporting, mandating that approximately 50,000 companies provide detailed, audited disclosures. For financial services firms, this presents a unique and immense challenge centered on Scope 3 emissions, particularly "financed emissions," which can constitute over 99% of their total climate impact. This article delves into the complexities financial institutions face in collecting and reporting this value chain data, from methodological inconsistencies to significant internal resource gaps.