Corporate Sustainability Reporting Directive (CSRD)

Navigating regulatory and data complexity is more challenging than ever. Shifting sustainability disclosure regulations and rising expectations around sustainability data are adding new layers of complexity. To make holistic and strategic business decisions, there is a need to seamlessly integrate diverse data sources and stay ahead of constant changes in regulation. 

The power of AI and technology can help you unlock insights and harness potential from your data to create more value in your business and keep you ahead in a fast-changing world. Leveraging your data can help design sustainable supply chains, rethink resource use, reduce carbon and navigate regulatory compliance.

Understanding the current landscape while keeping a keen eye on the future can help your business stay ahead of regulations, avoid potential disruption and penalties, and prepare for what’s next.

The double materiality assessment is a core element of CSRD — acting as the bridge between a company’s core strategy and its ESG reporting. The concept requires the assessment of the two dimensions to double materiality: impact materiality and financial materiality, when identifying the information to be disclosed. This approach demands that companies evaluate their impact on environmental and social factors (the inside-out view) and assess how sustainability issues impact their risk profile and financial performance (the outside-in view). Our experience supporting those who have already reported under CSRD has given us great insight into topics relevant at each industry level as well as practical experience of how best to complete these assessments

Regardless of the maturity of existing non-financial reporting, this is a significant project for any organisation and identifying a roadmap and implementation plan at the outset is key. Businesses must identify stakeholders and obtain their buy-in, analyse existing sustainability reporting processes, and engage with key internal stakeholders to understand existing data management processes. This is particularly important given the scale of the ESRS, which, despite reductions in the recent amended ESRS, includes 314 separate data points for organisations to collect and report on.

Mandatory limited assurance is required on CSRD reporting, which will increase the requirements for controls over the process and the data used for the increased disclosures. 

In-scope companies will need a robust internal framework for sustainability reporting, capable of adapting to changing requirements and withstanding rigorous external scrutiny. 

Many organisations benefit from completing pre-assurance readiness assessments prior to the live period of reporting. 

Time is limited when it comes to reporting. Therefore, involving your assurance practitioner early on in the development of your materiality assessment and documentation approach can be quite helpful. This will allow you to address any potential concerns about the process and available documentation upfront and ensure that there is enough time to align expectations before the start of the assurance engagement. 

Incorporating tax reporting in the CSRD framework is a crucial factor for businesses striving for comprehensive sustainability compliance. It guarantees that tax strategies not only comply with regulations, but also reflect a commitment to societal and environmental responsibility. Transparent tax practices are essential, showcasing how tax contributions support broader sustainability objectives. To navigate this aspect of CSRD, a comprehensive understanding of both tax and sustainability reporting is necessary, ensuring that financial practices contribute positively to the company’s reputation and stakeholder relations.

The scope of the ESRS is wide, which inevitably means that organisations will need to report on areas that are new to them. In many instances the first step is understanding the technical requirements in detail and what the next steps are. We can help you break this down into actionable, practical steps including support on the documentation that your auditors will require to assure the data / statement.

Drafting your first sustainability statement can be a daunting prospect when faced with the list of datapoints within the ESRS. We help businesses draft and review CSRD disclosures, ensuring alignment with regulatory standards and consistency with your other reporting.