On 14^th of December 2022: The European Parliament and the Council (EU) 2022/2464 formally enacted new legislation to amend Regulation (EU) 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU on corporate sustainability reporting.

The CSRD (Corporate Sustainability Reporting Directive) replaced the NFRD (Non-Financial Reporting Directive), expanding the scope and criteria for the information to be disclosed.

Based on the ESRS S1 standard of the social part (S) of the Directive and on the basis of a double materiality analysis, HR departments will be asked to prepare and implement measurable programmes and actions to enable the recipients of the report to understand the sustainability impact of their organisation on their employees.

HR departments of companies with groups Shared Services Center operating in EU markets will have to adapt their internal and reporting processes to the CSRD requirements and the relevant local legal provisions.

S for social responsibility and synergy.

Long before the European Directive on Corporate Social Responsibility came into force, Fiabilis Consulting Group actively supported and assisted leading European organisations and their Shared Services Center in the field of social sustainability and governance. We see our involvement in this area as providing practical and measurable solutions for HR departments to bring them into line with legal requirements and the market environment on the one hand, and on the other to provide funding for organisations' current social and governance challenges. This approach encapsulates our mission and vision, enabling organisations to achieve their strategic objectives, of which ESG strategy is an important part.

The fact that SSC centers rely on measurable data and indicators as part of ESG activities is perfectly in line with the intentions and expectations of the European Commission, which wants to combat greenwashing and motivate organisations to provide the market with meaningful data on the impact of an organisation's activities on its employees, on society or on compliance with its regulatory obligations.

As a world leader and advisor in holistic labour cost management and social security legislation, our task is to provide employers with all the necessary solutions and opportunities in this area in their local markets. In doing so, we create a fairer and more sustainable balance and synergy between employers, workers, institutions and final beneficiaries.

Today, the CSRD is not only an operational challenge, but especially a financial one for companies and SSC HR Operations across Europe.

According to study carried out by the European Commission, the maximum total cost of compliance with the CSRD Directive for EU businesses is estimated at around 8.8 billion € over a ten-year period. Compared to the group of 50,000 companies covered by the directive, this gives us an average additional cost of compliance of €160,000 per organisation. Given that new groups of companies will be covered by the directive's requirements every year, HR departament should be considering and planning for these additional costs in their budgets now, in collaboration with their organisation's management. With an average EU wage increase of 5% (Eurostat, 2023), strong wage pressure among employees as an indirect consequence of Covid, inflation and the recurring need to improve labour productivity, implementing the Social & Governance requirements of CSRD Directive the will be a real challenge for HR departments.
The role of SSC HR Operations in supporting their internal customers in this mission will be crucial in the coming years.

"The skilful use, understanding and management of HR data is particularly important today to effectively align organisations with ESG market requirements. The use of advanced HR analytics to understand an organisation's HR priorities in the area of Social & Governance, combined with the solutions that local labour markets offer in the area of salary cost rationalisation, can significantly improve the cost-effectiveness and efficiency of ESG monitoring processes. The role of Shared Service Centres managing an organisation's global HR processes is crucial in this area," said Arnaud Tardif, Group Managing Partner, Fiabilis Consulting Group.

As specialists in labour cost analysis and human resources consultants operating in 6 EU markets, we are continually helping SSC centers to meet these challenges of tomorrow.

HR Big Data at the service of Social & Governance of the CSRD Directive. 

The skilful use, understanding and management of HR data is particularly important today to effectively align organisations with ESG market requirements. SSC HR Operations should play an important role in supporting their serviced organisations to meet Social & Governance requirements in the local markets and in improving labour costs productivity in the long term. Therefore it is valuable to use of all available instruments and solutions that EU local labour markets provide in this area that support these challenges.

Fiabilis Consulting Group, operating in 6 EU markets (Spain, Poland, Italy, France, Belgium, Germany) in a single cooperation process, supports SSC HR Centers in implementing the most effective solutions offered by local labour markets to help SSC and the organisations they support to meet the Social & Governance requirements of the Directive CSRD and to generate additional financial resources for this purpose.

Contact for ABSL Members:

Iwona Busch | Head of Sales Europe
Fiabilis Consulting Group 

e-mail: ibusch@fiabilis.pl

Mobile: +48 505 270 942