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Our business consulting services can help you improve your operational performance and productivity, adding value throughout your growth life cycle.
Business process solutions
We can help you identify, understand and manage potential risks to safeguard your business and comply with regulatory requirements.
Business risk services
The relationship between a company and its auditor has changed. Organisations must understand and manage risk and seek an appropriate balance between risk and opportunities.
As organisations become increasingly dependent on digital technology, the opportunities for cyber criminals continue to grow.
Forensic and investigation services
At Grant Thornton, we have a wealth of knowledge in forensic services and can support you with issues such as dispute resolution, fraud and insurance claims.
Mergers and acquisitions
Globalisation and company growth ambitions are driving an increase in M&A activity worldwide. We work with entrepreneurial businesses in the mid-market to help them assess the true commercial potential of their planned acquisition and understand how the purchase might serve their longer- term strategic goals.
Recovery and reorganisation
Workable solutions to maximise your value and deliver sustainable recovery
Transactional advisory services
We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
We provide a wide range of services to recovery and reorganisation professionals, companies and their stakeholders.
The International Financial Reporting Standards (IFRS) are a set of global accounting standards developed by the International Accounting Standards Board (IASB) for the preparation of public company financial statements. At Grant Thornton, our IFRS advisers can help you navigate the complexity of financial reporting from IFRS 1 to IFRS 17 and IAS 1 to IAS 41.
Audit quality monitoring
Having a robust process of quality control is one of the most effective ways to guarantee we deliver high-quality services to our clients.
Global audit technology
We apply our global audit methodology through an integrated set of software tools known as the Voyager suite.
Corporate and business tax
Our trusted teams can prepare corporate tax files and ruling requests, support you with deferrals, accounting procedures and legitimate tax benefits.
Direct international tax
Our teams have in-depth knowledge of the relationship between domestic and international tax laws.
Global mobility services
Through our global organisation of member firms, we support both companies and individuals, providing insightful solutions to minimise the tax burden for both parties.
Indirect international tax
Using our finely tuned local knowledge, teams from our global organisation of member firms help you understand and comply with often complex and time-consuming regulations.
Innovation and investment incentives
Dynamic businesses must continually innovate to maintain competitiveness, evolve and grow. Valuable tax reliefs are available to support innovative activities, irrespective of your tax profile.
Private client services
Our solutions include dealing with emigration and tax mitigation on the income and capital growth of overseas assets.
The laws surrounding transfer pricing are becoming ever more complex, as tax affairs of multinational companies are facing scrutiny from media, regulators and the public
Tax policies are constantly evolving and there are a number of complex changes on the horizon that could significantly affect your business.
The new directive revises the 2014 Non-Financial Reporting Directive (NFRD), extends the scope of covered companies and strengthens the reporting requirements for in-scope companies.
Approximately 50,000 companies will eventually be required to report on sustainability, including larger companies, as well as listed SMEs.
What are the goals of the new CSRD?
- Enables businesses to increase transparency and accountability of their reporting, with stakeholders gaining insight about sustainability (performance) through analysis, benchmarking and auditing.
- Broadens the scope of sustainability management and reporting to include sustainability risks and opportunities.
- Encourages businesses to develop a strategy to improve on sustainability.
What are the new requirements?
The new directive introduces substantial sustainability-related reporting requirements, with small variations for the different companies in scope.
New disclosure requirements
Specific details about the business model and strategy, with notable reference to sustainability-related opportunities, resilience and plans to ensure compatibility with the transition to a climate neutral economy and the limiting of global warming to 1.5 °C.
Sustainability targets, including, where appropriate, 2030 and 2050 GHG emission reduction targets and a description of relevant progress.
The role, expertise and skills of the administrative, management and supervisory bodies for sustainability. The existence of sustainability incentives offered to those members.
The business policies for sustainability.
The due diligence process implemented with regard to sustainability matters.
The principal actual or potential adverse impacts connected with the business operations and value chain.
Any actions taken to prevent, mitigate, remediate or bring an end to actual or potential adverse impacts, and their results.
The principal sustainability risks and how those are managed.
All relevant disclosures will now extend to the reporter’s value chain, including products and services, business relationships and supply chain.
Double materiality: Double materiality is a cornerstone of the new CSRD. In-scope companies will now have to report on a double materiality basis, as a result of sustainability risks and opportunities, and the impact of the company on people and the environment. This means that companies will have to identify both the external impact on society and the environment, as well as the impact on the enterprise value.
Sustainability reporting standards: Disclosures will need to be undertaken in accordance with the European Sustainability Reporting Standards (ESRS) by the European Financial Reporting Advisory Group (EFRAG). The Commission shall adopt the first set of Standards by 30 June 2023, and shall specify complementary information to be reported on sustainability matters by 30 June 2024. It is indicated that the sustainability reporting standards shall avoid imposing an administrative burden on companies, hence they shall be considering, to the greatest extent possible, the work of global standard-setting initiatives for sustainability reporting.
Sustainability assurance: Introduction of an EU-wide requirement for limited assurance on sustainability information with the aim to move to reasonable assurance in the longer term. More specifically, under the directive, the Commission must adopt legislation to provide for limited assurance standards (1 October 2026), as well as further legislation to provide for reasonable assurance standards (1 October 2028). The assurance certification must come from an accredited independent auditor or certifier, ensuring that the sustainability information complies with the certification standards that have been adopted by the EU.
Which companies are in scope?
Companies already subject to the NFRD. That is, essentially, large EU 'public interest entities' with regulated market listed securities, credit institutions and insurance companies with more than 500 employees.
Parent companies of a large group. Large groups are groups consisting of parent and subsidiary companies included in a consolidation, fulfilling two of the following criteria:
- a balance sheet total exceeding €20,000,000
- a net turnover exceeding €40,000,000
- an average of more than 250 employees during the financial year (on a consolidated basis).
All 'large' EU companies fulfilling two of the following criteria:
- a balance sheet total exceeding €20,000,000
- a net turnover exceeding €40,000,000, and iii) an average of more than 250 employees during the financial year.
Listed small and medium-sized enterprises, with lighter disclosure requirements and the ability to opt-out until 2028.
Other EU and non-EU companies (with the exception of micro undertakings) with securities listed on EU regulated markets. Those include debt securities with denominations of less than €100,000 or equivalent listed on an EU regulated market. It is noted that the directive does not apply to securities listed on EU multilateral trading facilities.
Application to non-EU companies
Non-EU companies that operate in the EU may also fall under the CSRD scope, regardless of whether they are listed or not.
They shall be required to provide sustainability disclosure if:
- Their net turnover generated in the EU (at the consolidated or individual level) exceeds €150 million for each of the last two consecutive financial years, and
- They have at least one subsidiary in the EU (either a large EU company, or an EU company listed on an EU regulated market which is not a micro undertaking), or an EU branch with an annual net turnover exceeding €40 million in the previous financial year.
Milestones of the CSRD implementation
If you would like to discuss any of the points raised, please speak to your usual Grant Thornton contact or your local member firm.