IS YOUR BUSINESS 
READY FOR
A NEW ERA  
OF ESG  
REPORTING?
A PALLETEARTH WHITE PAPER
JULY 2023 
© 2023 RDP Group Ltd.  
All Rights Reserved.

//////  IS YOUR BUSINESS READY FOR A NEW ERA OF ESG REPORTING?
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JULY 2023.  ©2023  RDP Group Ltd. All Rights Reserved.
START PREPARING NOW FOR  
EU REPORTING REQUIREMENTS 
2024
2028
2030
2025
2029
2040
The European Union is an economic powerhouse:  
the world’s largest trading bloc, with 440 million 
consumers and the top trading partner for 80 nations. 
When it sets new rules for businesses, its actions not only 
affect businesses within the EU, but across the globe. 
The EU wants to create a more sustainable economy, 
and its new Corporate Sustainability Reporting Directive 
(CSRD) is a major step toward achieving this ambition. 
The CSRD requires businesses to provide sustainability 
disclosures across a range of environmental, social 
and governance (ESG) topics, including greenhouse 
gas emissions, resource use, and circular economy. 
THESE NEW RULES  
APPLY TO NEARLY  
50,000 COMPANIES  
AND THE RIPPLES  
WILL BE FELT 
THROUGHOUT THE 
GLOBAL ECONOMY. 
The CSRD has moved the bar for sustainability reporting 
and companies need to start making changes now 
to help them comply with regulations and meet the 
expectations of both trading partners and consumers. 
The CSRD only the first of a series of proposed corporate 
sustainability reporting regulations. The direction is 
clear – corporations need to focus on ESG aspects and 
invest in improving their ESG performance now.
MILESTONES FOR EUROPEAN 
UNION ESG REGULATIONS
Expected roll-out of Digital 
Product Passport for 
some products, providing 
information about 
sustainability – will apply 
to all products sold in the 
EU regardless of country of 
manufacture.
Standards for assurance 
of CSRD reporting will be 
adopted, likely to be similar 
to current standards for 
financial statements.  
The option for listed 
SMEs to opt out of CSRD 
reporting expires. 
EU member states must 
have reduced packaging 
waste by 5% per capita 
compared to 2018 baseline. 
Consumption benchmarks 
under the Critical Raw 
Materials Act will apply.
Deposit return schemes 
must be in place for metal 
and single-use plastic 
beverage containers in EU 
countries.
EU member states must 
have reduced packaging 
waste by 15% per capita 
compared to 2018 baseline.
In-scope entities will 
need to report on ESG 
measures under the 
CSRD for FY2024.

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//////  IS YOUR BUSINESS READY FOR A NEW ERA OF ESG REPORTING?
JULY 2023.  ©2023  RDP Group Ltd. All Rights Reserved.
SUSTAINABILITY REPORTING 
IS RAPIDLY BECOMING AN 
IMPERATIVE
Demand for clear, accurate data on ESG performance has been increasing 
for some time, driven by stakeholders including consumers, investors, and 
suppliers. Companies cannot afford to delay making improvements to adhere 
to new reporting rules, because complying may be complex and multifaceted. 
VARIOUS REQUIREMENTS IN DIFFERENT 
MARKETS ADD COMPLEXITY 
Requirements vary across markets, and companies 
that operate in several jurisdictions will likely need to 
invest considerable time and money in complying with 
various different standards. While the EU regulations are 
more advanced, in the US the Securities and Exchange 
Commission has proposed climate-related disclosures 
for all registrants. Meanwhile, the UK is developing its 
own corporate sustainability reporting standards.1 
A RIPPLE EFFECT THROUGHOUT 
THE GLOBAL ECONOMY
While new regulations will at first only apply to 
large or listed corporations, the impact will to flow 
into all types of businesses. Large companies and 
governments will be asking for more ESG transparency 
from suppliers and partners, in order for them to 
accurately comply with their own requirements. 
DIGITAL PRODUCT PASSPORT 
SCHEMES LIKELY TO EXPAND
Starting from 2024, certain types of products sold 
within the EU markets will be required to have a Digital 
Product Password (DPP). The DPP is designed to share 
information on a product’s sustainability and circularity. 
This will initially impact batteries, textiles, and consumer 
electronics, but other products will almost certainly follow.
Once a product has a DPP, it will likely be displayed in markets 
beyond the EU, and consumer and retailer demand may 
drive the expansion of digital product passport schemes.
FULL SUPPLY CHAIN VISIBILITY  
WILL BE REQUIRED 
Quality reporting on Scope 3 greenhouse gas  
emissions will be one of the biggest 
challenges for businesses worldwide. 
Scope 1 emissions are those from 
owned or controlled sources; 
Scope 2 covers purchased energy;
Scope 3 is much broader, covering 15 categories  
including emissions produced by external parties  
within a supply chain and downstream 
emissions from logistics. 
Full supply chain visibility alone will be an uphill  
battle for many; a 2022 survey found only 13% of  
procurement professionals “have a fully 
mapped supply chain network”.2 
Companies will need complete supply chain 
visibility to be able to start comprehensively 
measuring Scope 3 emissions data.
1	 Meynier, T, et al (30 January 2023), EU Finalizes ESG Reporting Rules with International Impacts, Harvard Law School Forum on Corporate Governance
2	 Deloitte (October 2022), Procurement and supply chain resilience in the face of global disruption
STARTING FROM 2024, 
CERTAIN TYPES OF 
PRODUCTS SOLD WITHIN 
THE EU MARKETS WILL 
BE REQUIRED TO HAVE 
A DIGITAL PRODUCT 
PASSWORD (DPP).

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//////  IS YOUR BUSINESS READY FOR A NEW ERA OF ESG REPORTING?
JULY 2023.  ©2023  RDP Group Ltd. All Rights Reserved.
HUGE CHALLENGES REQUIRE WIDESPREAD CHANGE 
To meet the global warming limitation targets of the Paris Agreement, and 
transform the world economy to a more resilient and sustainable model, major 
change is needed. ESG reporting regulations are a vital tool for shaping a more 
sustainable future, and are likely to ultimately affect almost all businesses. 
The sooner companies begin working on ESG corporate reporting, the more 
smoothly the transition will feel.
3Kantar (2022), Sustainability Sector Index 2022
4EY (2021), How do you transform data into insight? Eighth Global Corporate Reporting Survey
5McLoughlin, James (2023), 60% of UK businesses may not be prepared for Scope 3 emissions reporting deadline, survey finds, LogisticsManager.com 
6European Commission (n.d.), Corporate sustainability reporting
7Billerud (n.d.), How to Reduce the Carbon Footprint of Your Supply Chain
50,000
47%
97%
87%
Six out of ten  
UK businesses  
are not prepared  
for Scope 3 
emissions 
reporting 
deadlines5 
Of investors say 
they would like 
mandatory ESG 
reporting against 
globally consistent 
standards4 
Companies 
will be subject 
to mandatory 
sustainability 
reporting from 
FY20246 
Of consumers say 
they have stopped 
buying products 
because of their 
impact on the 
environment or 
society3
USD in 
projected 
benefits to SEA 
economies by 
2030 if they go 
green3
Of global 
consumers are 
prepared to 
take action to 
live in a more 
environmentally 
conscious way3
$1
TRILLION
HOW WILL YOU MEASURE AND 
TRACK ESG PERFORMANCE? 
Whether the CSDR applies to your organisation or 
not, it is vital to measure, track and monitor ESG 
performance. Here are some simple ways to get started. 
HAVE PROCESSES FOR ESG 
METRICS – AND SET GOALS
Quantitative metrics are easier to measure, so have  
processes in place to monitor GHG emissions, water 
use and energy use. Then consider qualitative factors 
like labour practices – you may already have plenty of 
data on wages, worker safety and diversity, so ensure 
that’s being accurately captured and monitored. 
The same applies to governance factors; diversity, 
compensation and data security, for example, are all 
material to your organisation’s ESG performance. 
Do you have reliable processes to capture and  
store data? Are you able to see it on a dashboard? 
And finally, have you set goals so you can measure 
your progress against a concrete target?
 All these systems will need to be in place in the  
future, so if you haven’t already started, it’s time  
to make your move.
REVIEW YOUR ENTIRE SUPPLY CHAIN 
TO IDENTIFY QUICK WINS 
In one study, only 25% of businesses were engaging with 
suppliers to reduce emissions, and fewer than 20% had 
full visibility across their supply chain’s sustainability 
performance.7 McKinsey found that supply chain 
impacts “account for more than 80% of greenhouse 
gas emissions and more than 90% of the impact on air, 
land, water, biodiversity and geological resources”.7 
Look across your supply chain; are there ways you can quickly 
make a difference to your ESG performance? It might mean 
switching a supplier, choosing a different transport method, 
or it could be as simple as changing your shipping pallets. 
For example, a major global produce exporter cut its CO2 
equivalent per pallet by over 70% per journey on the 
route between Philippines and Japan – just by switching 
from wood pallets to renewable PalletEarth products.

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//////  IS YOUR BUSINESS READY FOR A NEW ERA OF ESG REPORTING?
JULY 2023.  ©2023  RDP Group Ltd. All Rights Reserved.
LOOK AT THIRD PARTY CERTIFICATION 
TO GUIDE BEST PRACTICE
Particularly with quantitative ESG topics, it can be hard to know 
how to measure these effectively. Third party certification 
can provide you with a framework for measuring and 
monitoring, and give you an independent seal of approval. 
Some well-known examples include: 
Fairtrade certification;  
FSC certification;  
ISO compliance standards.
For example, we ensure PalletEarth pallets are ISPM 15 
compliant and tested to ISO 8611 standards, which gives clients 
confidence in product performance and compliance. 
CONSIDER HOW ESG PERFORMANCE  
WILL BE AUDITED 
An internal audit is a vital first step in assuring your data is  
accurate and you are fully compliant with reporting requirements. 
In addition, in-scope companies for the CSRD will need to get 
third-party assurance over their disclosures. This be limited 
at first but demands will likely increase over time. 
Try to find an independent auditor who will help your 
organisation remain compliant and flag any issues early. 
Member states will impose financial penalties for non-compliance 
with CSRD reporting obligations; these will range from a few 
thousand euros to several million euros, depending on severity. 
Other sanctions can include warnings, bans and 
potentially criminal convictions.8 
8Ellisphere (30 January, 2023), CSRD: what’s changing for businesses? 
AVOIDING 
PENALTIES 
due to  
non-compliance 
with new 
regulations.
LOYAL  
CUSTOMERS 
who have 
confidence in  
your product’s  
ESG credentials.
STAFF  
RETENTION
through  
improved working 
conditions.
FULL SUPPLY  
CHAIN VISIBILITY
which may 
enable you to 
identify areas for 
cost saving and 
efficiency.
ACCESS TO MORE 
MARKETS 
as ESG reporting 
becomes 
mandatory  
in more nations.
LOWER ENERGY 
AND RESOURCE 
COSTS 
as your business 
transitions to a 
lower-emissions 
model.
THE POTENTIAL PAY-OFF FOR BETTER 
ESG PERFORMANCE IS SIGNIFICANT
There are some major benefits to your organisation 
that come from improving ESG performance:
MEMBER STATES  
WILL IMPOSE FINANCIAL 
PENALTIES FOR  
NON-COMPLIANCE 
WITH CSRD REPORTING 
OBLIGATIONS...

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//////  IS YOUR BUSINESS READY FOR A NEW ERA OF ESG REPORTING?
JULY 2023.  ©2023  RDP Group Ltd. All Rights Reserved.
9Carbon Trust (n.d.), An introductory guide to Scope 3 emissions.
PALLETEARTH’S 
MATERIAL 
INTELLIGENCE: 
ACCURATE DATA 
ON EMISSIONS AND 
CIRCULAR ECONOMY  
IN YOUR SUPPLY CHAIN
As your business moves to accurately measure and report  
on ESG factors like GHG emissions and circular economy,  
you need to work with the right supply chain partners. 
You may already be measuring Scope 1 and Scope 2 emissions 
within your organisation – these are relatively easy to track 
and monitor. 
However, capturing Scope 3 data can be more complex.  
It includes transportation and distribution, waste disposal 
– and it can make up 70% to 90% of a company’s carbon 
footprint.9 
Our pallets provide traceability, support a circular economy, 
and have been found in our trials to reduce CO2 emissions 
by almost three-quarters. PalletEarth is a pioneer in circular 
economy solutions that prioritise the well-being of our 
products, people, and planet.
All this data and more is captured using our Material 
Intelligence software tools, which unlock the information 
gathered from your pallet movements. Each tool shines 
a light on the effectiveness of your supply chain, helping 
you make operating decisions that will not only improve 
efficiencies but also save time and money.
Example  
Philippines to Japan
Comparison of wood pallet versus PalletEarth
Road:	
150kms
Sea:	
4,656kms
Road:	
200kms
REDUCE SCOPE 3 EMISSIONS  
IN YOUR SUPPLY CHAIN 
Trials comparing PalletEarth to traditional wooden pallets 
have shown significant reductions in emissions: 
CO2 eq pallet journey – kgs Philippines to Japan (return)
Life cycle  
stage
Absolute Emissions [kg/CO2 eq]
Wood
PalletEarth
Savings
Total Emissions per 
Journey
17.303
4.642
12.661
RESULT:  
Over 70% reduction in CO2 eq per pallet journey

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//////  IS YOUR BUSINESS READY FOR A NEW ERA OF ESG REPORTING?
JULY 2023.  ©2023  RDP Group Ltd. All Rights Reserved.
Working with your team, we can provide long-term 
freighting solutions that will drive down costs 
whilst reducing your organisation’s carbon footprint. 
Talk to us today to change your tomorrow.
	solutions@palletearth.com 
	palletearth.com
REDUCE WASTE AND  
IMPROVE EFFICIENCY
Our pallets provide real-time global tracking, 
giving you a wealth of information about 
your freight. They cut waste and boost supply 
chain efficiency in measurable ways: 
CIRCULAR ECONOMY 
Our pallets are reusable, 
repairable and 100% 
recyclable at end of life.
AFFORDABLE INTELLIGENCE 
For just 2c a day, track every 
pallet in your supply chain, 
across the globe, in real time. 
This gives you round-the-clock 
visibility of stock for rapid and 
efficient decision-making. 
REDUCED DAMAGE 
Light but strong, PalletEarth’s 
pallets have an internal 
Steelite™ patented frame. 
Corner Shock absorbers 
and specially designed 
feet to minimise structural 
damage caused by forklifts 
– and impact alerts keep you 
informed.
TEMPERATURE 
MAINTENANCE 
Suitable for temperatures 
between -20°C (-4°F) 
and +45°C (113°F), with 
temperature alerts so you 
know when pallets are outside 
their optimal zone. 
LOWER ADMIN COSTS 
Reduce return journey 
expenses and cut pallet 
storage footprint by up to 
75%, while reducing fork time 
movement of empty pallets 
by up to 75%. 
This can further reduce carbon 
emissions.