EU CSRD and Pakistan Textile Suppliers: What Data Your EU Buyer Will Now Ask For
What Is EU CSRD and Why Should a Pakistani Factory Care?
The EU Corporate Sustainability Reporting Directive (CSRD) — which entered into force in January 2023 and applies progressively from financial year 2024 onwards — requires large EU companies to report on their environmental, social, and governance (ESG) performance using a standardised framework called the European Sustainability Reporting Standards (ESRS). Here is the key point for Pakistani suppliers: CSRD requires EU companies to report on sustainability risks and impacts throughout their entire value chain — including Tier 1, Tier 2, and increasingly Tier 3 suppliers in countries like Pakistan.
If you supply to a European retailer with over 500 employees (fiscal year 2024 onwards) or over 250 employees (fiscal year 2025 onwards), that retailer is now legally required to collect and publish sustainability data about your factory. The data points they will ask for — GHG emissions, water use, chemical management, worker wages — map directly to what Tti helps factories measure and document.
Which Pakistani Factories Will Be Affected and When?
Approximately 11,700 EU companies. These include the major fashion brands: H&M Group, Inditex, PVH Europe, Primark parent ABF. They are required to report on supply chain sustainability starting with FY2024 data. Their supplier questionnaires will reflect CSRD data requirements.
Approximately 49,000 additional EU companies. This covers the mid-tier fashion buyers and European distributors and wholesalers. The data cascading effect reaches deeper into Pakistani supply chains — including mid-tier CMT factories and fabric mills.
Non-EU companies with over EUR 150 million net turnover in the EU and at least one large subsidiary or branch in the EU must file CSRD-compliant reports. This may capture some of Pakistan's largest exporting groups directly.
CSRD Data Points Brands Will Ask Pakistani Suppliers
Scope 1, 2, and 3 (supply chain) emissions in tonnes CO2 equivalent. Must be third-party verified under ISO 14064 for CSRD assurance.
Total water withdrawal, water recycling rate, and wastewater quality (ETP discharge parameters). ZDHC Wastewater Guidelines are the recognised standard.
ZDHC MRSL conformance level, chemical inventory completeness, and elimination of substances of very high concern (SVHC).
Living wage compliance, working hours, freedom of association, gender pay gap, and health and safety incident rates.
Further Reading
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