CSRD and its impact on the vehicle fleet

Meaning of CSRD

The CSRD Directive is a European law that requires large and listed companies to report regularly on social and environmental risks. This CSRD legislation sets broader and stricter standards than the previous Non-Financial Reporting Directive (NFRD), with a strong emphasis on reporting greenhouse gas emissions. Under the CSRD directive, companies must not only document their CO2 emissions, but also how their activities impact human rights and the environment. This makes the CSRD’s scope broader and more significant for companies that are serious about their sustainability efforts.

Unlike the NFRD, where monitoring and reporting were voluntary, this is mandatory under the CSRD. This means that companies must now provide more detailed and reliable information, which has significant implications for the way they prepare and implement their sustainability reports. Companies must not only report, but also set targets to halve CO2 emissions and ultimately move towards zero emissions

CSRD legislation and fleet managers

With the entry into force of the CSRD legislation, companies are being forced to reduce their CO2 emissions across all aspects of their operations, including operational mobility. This places the fleet manager at the centre of the transition to more sustainable mobility. Whereas vehicle fleets have traditionally been an essential part of business operations, the focus is now shifting towards alternative mobility solutions such as shared mobility, cycling and digital mobility budgets. As a result, the role of the fleet manager is transforming into that of a mobility manager, a change that brings with it both challenges and opportunities.

The EU’s adoption of the Corporate Sustainability Reporting Directive means that companies must now report on their efforts to reduce greenhouse gas emissions. Fleet managers play a central role in this and must develop strategies to meet CSRD obligations. These new responsibilities require fleet managers to be experts not only in mobility management, but also in sustainability and regulation. Attention is also being paid to commuting by private transport, over which a fleet manager has less direct influence, but for which targets must nevertheless be set.

CSRD: who is it for?

The CSRD 2025 regulations extend the sustainability reporting obligation to a much larger group of companies. Whereas previously only large listed companies, banks and insurance companies with more than 500 employees were required to report, other large companies are now also obliged to share their non-financial performance. This means that EU companies meeting two of the following three criteria must comply with the CSRD obligation. The criteria are as follows:

• More than 250 employees
• More than €40 million in net turnover
• €20 million in assets

In addition, the CSRD directive also applies to non-EU companies with a turnover of more than €150 million that do operate in the EU. These companies must report on their sustainability performance from 2024 onwards, with the first reports due to be submitted in 2025.

CSRD reporting

Under the CSRD legislation, companies must report on three types of emissions: Scope 1, 2 and 3. These measurements are crucial for fleet managers. In the CSRD reporting, these three ‘scopes’ are used as examples to structure the CSRD reporting template.

• Scope 1: Direct emissions from company vehicles owned or managed by the organisation. This includes all emissions from vehicles running on fossil fuels.
• Scope 2: Indirect emissions from the production of purchased energy, such as the electricity consumed by electric vehicles.
• Scope 3: Indirect emissions from sources not owned or controlled by the organisation, such as employees’ commutes and business travel. This is the most difficult category to measure and requires a comprehensive approach to manage.

A key part of CSRD reporting is reducing Scope 3 emissions. Fleet managers can achieve this by making environmentally conscious decisions when planning business travel. Some strategies include:

• Environmentally friendly commuting: Encourage employees to choose sustainable modes of transport such as cycling or public transport.
• Low-carbon business travel: Consider virtual meetings as an alternative to travel and promote the use of low-carbon transport options, such as trains instead of planes.

How can fleet managers comply with CSRD requirements?

To comply with CSRD regulations and the associated reporting requirements, fleet managers must take a number of steps:

• Use of recognised sustainability standards: Consider, for example, the guidelines for accounting for greenhouse gas emissions
• Generate data-driven insights: Collect detailed data on vehicle usage, including fuel consumption, mileage, and the breakdown between business and private use.
• Engaging stakeholders: Build support and credibility for sustainability initiatives by actively engaging stakeholders.
• Use of technology: Utilise advanced technologies to collect data and automate reporting, thereby simplifying compliance with the CSRD 2025 requirements.

CSRD and TrackJack

TrackJack makes CSRD reporting much simpler. By equipping the fleet with journey recording systems, vehicle data and the information required for CSRD reporting are directly linked. TrackJack’s journey recording system records the following for every journey:

• the make and model of the vehicle;
• the fuel used;
• the total number of kilometres travelled;
• whether the journey was for commuting, private or business purposes.

TrackJack records this for every journey. The CSRD reporting example looks as shown in the image opposite. This way, you not only comply with the CSRD obligation, but also immediately optimise your entire fleet.

CSRD for your organisation

The CSRD regulations are changing the way companies need to think about sustainability and mobility. Would you like to know more about the CSRD and how TrackJack can help you with CSRD reporting at fleet level for Scope 1, 2 and 3? Please feel free to contact us on 010-8200190 or via sales@trackjack.nl