How EY is Preparing Thermo Fisher Scientific for CSRD

EY exists to build a better working world, helping create long-term value for clients, people and society and build trust in the capital markets. Enabled by data and technology, diverse EY teams in more than 150 countries provide trust through assurance and help clients grow, transform and operate. With a legacy of more than 20 years in sustainability and ESG services, EY combines deep technical skills across a breadth of business issues to help businesses create value for sustainability as well as help sustainability create value for the business. Working in this way ensures EY helps protect and create value for all stakeholders and to build a better working world. One such client is Thermo Fisher Scientific, a world leader in serving science with a company mission to enable its customers to make the world healthier, cleaner and safer.

“We’ve developed a great partnership with Thermo Fisher, serving as their technical advisor on ESG-related regulation such as the EU CSRD,” explains Lucy Godshall, Principal, EY Climate Change and Sustainability Services. 

The Corporate Sustainability Reporting Directive (CSRD) is a new European regulation that has caused a pivotal shift in sustainability reporting, setting new standards and requirements for companies to disclose information on their ESG impacts, risks and opportunities.

“The partnership between Thermo Fisher and EY has centred around learning together,” says Chris Shanahan, VP Global Sustainability Supply Chain at Thermo Fisher Scientific.

“I think it's the first time I've been through a process where we're making the playbook up as we go along because it's a new playbook. We're both learning and taking feedback and it's been very constructive. But companies shouldn't underestimate the work that's involved with CSRD.”

Partnering together on CSRD

EY supports Thermo Fisher in understanding what is most material to them as an organisation as part of its double materiality assessment, identifying potential disclosure gaps and preparing for its first CSRD-compliant report. 

“It definitely takes a village and we are learning together as we go, navigating the complexities of the EU CSRD while considering the implications to Thermo Fisher,” says Lucy. “Our approach has been grounded in collaboration and inclusion, bringing key stakeholders at Thermo Fisher along the journey to assess the impact on their strategy and operations.”

Early preparation is important to Thermo Fisher, as there will be long term implications to the decisions it will make to comply with these regulations. It is critical that decisions are made thoughtfully to avoid unintended consequences. 

The impact of ESG regulation

Legislation like CSRD is key to enhancing future transparency and driving corporate change across key issues including climate change, human rights, circular economy, gender equality and microplastics. CSRD is one of many ESG-related regulations emerging around the world including the EU Deforestation Act, US SEC Climate Rule and the UK’s Streamlined Energy and Carbon Reporting policy.

“CSRD is a game changer for sustainability reporting, particularly for companies based in the US like Thermo Fisher who have significant European operations and will have to report against the EU's European Sustainability Reporting Standards (ESRS),” says Lucy. 

The standards address an extensive set of qualitative and quantitative sustainability disclosures and CSRD has greatly increased the volume and rigour of reporting. Additionally, it mandates external assurance to increase trust and comparability.

“While Thermo Fisher has a lot of great sustainability information which they can leverage for their disclosures, CSRD will require disclosure in new and more expansive areas,” Lucy explains. “Our EY team brings core strengths in sustainability and financial reporting to support Thermo Fisher as they evolve their disclosures to meet these new compliance obligations.”

Partnering to scale impact 

 As sustainability regulations develop, naturally so do the actions companies are taking in this space.

“While there is a lot of work to be done to comply with these ESG-related regulations, ultimately the goal is to increase transparency and drive accountability. Our collective success is inherently linked to our ability to transform the way we, as a society, do business in response to the growing stakeholder expectations to protect people and the planet,” says Lucy. 

“Meeting the requirements of these ESG regulations will be an opportunity for Thermo Fisher to showcase the initiatives and investments they have made to enable their customers to make the world healthier, cleaner and safer, particularly with the great work that Chris and team are doing to decarbonise Thermo Fisher’s operations and global value chain.”

Partnerships are cited by many companies as an essential part of the sustainability journey and, as a Fortune 100 company, Thermo Fisher is able to scale its impact even further through global partnerships.

Lucy concludes: “Partnerships in sustainability continue to be a driving force for organisations to scale their impact and we’re extremely proud to be working with Thermo Fisher in this space as it aligns with our purpose at EY to build a better working world.”

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