With the Corporate Sustainability Reporting Directive (CSRD) now in effect across the European Union, businesses must adapt to a new era of non-financial reporting focused on environmental, social, and governance (ESG) disclosures.
Understanding and implementing CSRD requirements goes beyond compliance with embracing sustainability as a core business practice.
What is the CSRD?
Introduced in 2021, the CSRD replaces the Non-Financial Reporting Directive (NFRD) with more stringent requirements for corporate sustainability reporting. It ensures transparency, consistency, and comparability of ESG information while holding companies accountable for their social and environmental impacts.
The directive applies to:
- EU-listed companies (except small entities).
- Large EU companies meeting specific thresholds.
- Non-EU companies with significant EU operations.
Key Reporting Requirements
Companies must provide detailed ESG-related information, including:
- Environmental, social, and governance impacts.
- Double materiality: how sustainability issues affect financial performance and vice versa.
- Standardized reporting through European Sustainability Reporting Standards (ESRS).
- Independent verification via third-party audits.
Steps to Ensure Compliance
- Assessment & Gap Analysis: Review current practices to identify areas for improvement.
- Data Management: Implement systems to handle complex ESG data.
- Framework Development: Align with ESRS for consistent reporting.
- Training & Engagement: Build internal capacity and engage stakeholders.
- Materiality Assessment: Conduct a robust Materiality Assessment.
- Data Collection: Leverage technology for data collection and reporting.
- Report Preparation: Prepare the CSRD report based on collected data.
- Verification Preparation: Prepare for external audits.
- Continuous Improvement: Adapt processes to meet evolving standards.
Challenges & Solutions
- Data Complexity: Use technology for efficient data collection and analysis.
- Resource Allocation: Invest in expertise and consultation.
- Evolving Standards: Create scalable systems for long-term adaptability.
- Stakeholder Transparency: Foster open communication and feedback.
How to simplify CSRD compliance? Partner with us!
Stay ahead in sustainability reporting with Peterson’s guidance on CSRD compliance.
With the Peterson CSRD Tool, you can:
- ⚙️ Automate ESG data collection and standardization across your organization.
- 📊 Visualize progress with dynamic dashboards and real-time KPIs.
- 📄 Generate optimized reports aligned with ESRS standards.
Comprehensive Support Services
In addition to guiding companies through the CSRD compliance process, we offer:
- Expert Consulting: Tailored advice and ongoing support from seasoned consultants to navigate every step of the CSRD journey.
- Academy Training: Specialized programs to equip your team with the skills needed for effective sustainability reporting.
Simplify the process and focus on what matters: your sustainability strategy.
Request a demo today and elevate your ESG management. Contact us at: csrd@onepeterson.com