CSRD directive for company cars

What does the CSRD directive mean for company cars?

You hear it more and more in business circles: in 2024, the Business Sustainability Reporting Directive (CSRD) will come into effect. But what exactly is the CSRD? And how will it affect your employees driving company cars?

Mobility accounts for 20 percent of CO2 emissions in the Netherlands. In fact, if you look at road transport at the European level, passenger cars account for over 60% of total CO2 emissions. Add to that the fact that we drive twice as many work-related kilometers as we drive privately, and it is clear that something needs to be done. European politicians have come to the same conclusion, and so from 2024 the Business Sustainability Reporting Directive (CSRD) is coming into effect. We list below what this directive will mean for employers who offer employees a company car.

What exactly is the CSRD Directive?

In a nutshell, the CSRD Directive is a new European law requiring companies to report on the impact their activities have on people and the environment, starting in 2024. It applies to all listed companies as well as those meeting two of the three criteria below:

They have more than 250 employees;
They have over 40 million euros in turnover per year;
They have more than 20 million euros on the balance sheet.

The CSRD is expected to apply to tens of thousands of European companies. And while the large and publicly traded companies will therefore be the first to be subject to it, medium-sized companies will follow in 2025 and, starting in 2026, smaller companies, starting with publicly traded SMEs.

To meet CSRD requirements, all companies in Europe will have to report non-financial information in the same transparent way. This will make it easier for customers to understand what, if any, goals a company has to reduce or even neutralize its climate impact. For example, is adequate attention paid to human rights in the mining of raw materials? What about loss of biodiversity? And how does the logistics process affect air quality? These are all important questions that will soon be better understood with the entry into force of this new European directive. Another important question: what about the sustainability of your fleet?

Electric fleet as sustainable alternative

Hybrid working has become an integral part of today's society for many companies. This also logically impacts how many business kilometers we all travel. But, says market researcher Eric Vousten, at the beginning of the Covid crisis, it still seemed like employees would permanently be driving less for business, but the current expectation is that we will drive as many kilometers in 2023 as we did in 2019. The National Business Mobility Survey 2022 found that environmental awareness outweighs the cost factor for many large companies. The previously predicted shrinkage of fleets due to Covid ended up being less severe than expected. A company car is an attractive fringe benefit, especially with the current labor market shortages, and thus a way to ensure vacancies are filled quickly. Electric driving would thus appear to be the ideal compromise for companies that value sustainability.

Meanwhile, more Dutch employers are allowing you to choose an electric car as a lease car than a gasoline car. Moreover, because of this rising demand, it is becoming cheaper and therefore more attractive to drive electric. And that comes in handy when companies will soon have to report their fleet emissions. Avis features numerous electric vehicles, from the "smart SUV" Kia E-Niro to the "ideal city car" Renault Zoe. Our electric fleet is only expected to expand in the future.

Hassle-free reporting

How do you ensure that these additional regulations cause you as little extra work as possible? We found a solution to that at Avis. As a customer, through your Avis Business account you always have insight into the number of rental days, the number of kilometers driven, the tax value of the cars used and the CO2 emissions. You can easily find this information in your Avis Business account. Upon request, we can also provide the total overview of all reservations made and the license plates of cars currently rented out and deployed. Very convenient for project reporting and for financial administration.

That way, even after the CSRD directive comes into effect, you can simply continue to enjoy the benefits of business driving - without any additional administrative hassle. Want to know more about Avis Business? Take a look at www.avis.nl/zakelijk!