Corporate Sustainability Reporting Directive (CSRD): How can I prepare?

Corporate Sustainability Reporting Directive (CSRD) – most of company leaders already heard about this new directive, which will require sustainability reporting from large, small and medium companies as well as large non-EU companies generating income in the EU or having EU branch. After reading ESRS (European Sustainability Reporting Standards), which contain reporting standards under CSRD as well as completing several trainings on these topics, what would be my advice to companies to prepare for upcoming mandatory sustainability reporting?

Part 1: Assessing status quo (CSRD Fokus)

1. Understand the scope of CSRD, that applies to your organization: if and when does your company need to report

2. Understand concept of double-materiality by directly reading EFRAG guidelines or reaching out to Greenativity

3. Perform Double Materiality Assessments to understand what sustainability aspects are most important for your company and environment your company impacts: this is a relevant step even if you already have a Sustainability strategy and may help you re-evaluate your corporate sustainability priorities as well as make the whole process more inclusive and transparent

4. Parent companies should understand, which of their branches are subject to CSRD.

5. Companies, who are not under CSRD requirement should assess their supply chains, as if one of their partners need to report on CSRD, data about their supply chain partners will be necessary. This way even without being required to report under CSRD, company may need to provide some information on sustainability disclosures.

Part 2: Identifying and closing gaps

1. Conduct an analysis to see what ESRS-required data your company already regularly gathers.

2. Identify and address data gaps gathering information about your team, your stakeholders and value chain:

• by training your staff, finding specialists for exchange and creating sustainability groups within your organizational structure

• adapting internal processes to fulfill ESRS standards as well as to have sufficient data to report on them

• prepare for integrated reporting (annual reporting will now consist of sustainability reporting as well as financial reporting parts)

• improve internal data tracking and control processes

• stay updated on new CSRD & ESRS developments

Reach out to Greenativity for initial analysis and step by step solutions for your business sustainability!

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