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Corporate Sustainability Reporting Directive (CSRD)

Evidently working on sustainability

The Corporate Sustainability Reporting Directive (CSRD) is an EU directive that mandates large organisations to report on their impact on people, the environment, and society. Companies must demonstrably work on sustainability, show how they approach it, and then report improvements as part of their CSR strategy. The CSRD requires reporting on Environment, Social, and Governance (ESG) topics.

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WHEN IS THE CSRD MANDATORY?

The CSRD’s applicability depends on the type of company:

  • From 2024 | companies that fall under the Non-Financial Reporting Directive (NFRD)
  • From 2025 | large companies that currently do not fall under the NFRD
  • From 2026 | listed SMEs

WHAT CAN COMPANIES DO THEMSELVES?

Almost all companies will be affected by the CSRD. Either the company itself is obligated to report, or supply chain partners (suppliers or customers) will request data for their reporting obligations. Improvements in sustainability are increasingly viewed from a supply chain perspective under the CSRD. To be prepared, companies should:

Start as soon as possible

Reporting on sustainability information is new for many companies, and their information systems are often not yet completely set up. Moreover, the reporting obligation from the CSRD requires information about the viability of business models, ethical conduct, and internal control regarding sustainability.

Precisely because reporting on sustainability information is new for many companies, our advice is: start now, so that your organisation is prepared for the obligation from the CSRD. Transparency is paramount within the directive, which means you don’t have to do everything at once – it’s mainly about showing that your organisation is taking steps.

Find out what your organisation needs to report on

First, determine the so-called ‘material topics’ that your organisation needs to report on. You can gain clarity on this by engaging with stakeholders to discuss which business factors have the greatest impact on people and the environment. This way, you can identify the most significant sustainability risks and opportunities for your enterprise and understand what you need to monitor, record, and arrange in order to ultimately report.

All companies that (eventually) fall under the CSRD directive must assess their sustainability issues from two perspectives. This is called the ‘double materiality principle’:

  • Impact of the company: What is the company’s impact on people, the environment, and society? Examples include damage to nature or human rights violations.
  • Impact on the company: How can the company itself be affected by sustainability-related developments? What opportunities or risks arise? Examples include the introduction of new CO2 levies or opportunities for developing new circular and sustainable products.

ASSISTANCE WITH CSRD INTEGRATION

Looking for help integrating the Corporate Sustainability Reporting Directive (CSRD) within your organisation? Feel free to engage us:

  • We assist in determining the impact of the enterprise on its surroundings and how the enterprise is affected by external developments in sustainability.
  • We support the development – and if desired, the implementation – of an action plan for the structuring of business processes. This is done in such a way that transparent reporting on the effects of business activities on people and the environment is possible.
  • With our Life Cycle Analysis (LCA) services, we can provide input for specific data points that you may need to report on.
  • Together with the company itself, we look at the content to explore opportunities to seize and risks to manage. Of course, we also pay attention to the market context in which a company operates.

EMBEDDING CSRD

The process consists of five phases:

  • Double materiality assessment – Through analysis, we determine which indicators are material and must be reported, based on the various standards within the CSRD. We also map out the KPIs per criterion, as well as the associated reporting expectations.
  • Data inventory – We conduct a scan of the company’s administration and the established reporting processes to assess whether all information is available for sustainability reporting.
  • Drafting a proposal for an action plan – We jointly develop an action plan to address the identified points of attention in the company’s administration and reporting processes. Life Cycle Analysis (LCA) of the product portfolio can be part of this.
  • Implementation phase – We focus on implementation of the action plan. We can support both the execution and the drafting of the sustainability report itself. We can also perform LCAs.
  • Sustainability strategy – This phase is optional. The earlier phases will reveal where steps can be taken in terms of sustainability. We can provide guidance in developing an action plan and during its execution.

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