Is CSRD an Iceberg?

When we think of an iceberg, it conjures up all kinds of images. Proverbially of a barely visible tip, with ninety percent of the colossus beneath the surface. But also of the Titanic that sank because of it.

For many companies, the Corporate Sustainability Reporting Directive (CSRD) will in numerous ways resemble an iceberg. A colossus that looms, but the full extent of which is not yet visible. There is no escape from it either. This European legislation stipulates that in the coming years, almost fifty thousand companies in Europe will have to report on sustainability issues. Companies that meet the set criteria must - like the financial annual reports - have an annual ESG report signed off by their accountant, in which they provide insight into their sustainability objectives and results. This must also be done much more extensive than before, given the extensive reporting standards adopted by the European Commission.

The CSRD is therefore legislation that simply must be complied with, but above all represents an opportunity. You can approach this as an organization from the starting point of 'how do we ensure that we are compliant?'. And off course the basics must be in order. However, with the required transparency in business operations and objectives, the CSRD offers an excellent opportunity to demonstrate ambition and quality, which can be of decisive added value for your customers.

It is important to determine this course now. To incorporate sustainability ambitions into the business strategy. CSRD guidelines can help you with this. However, this requires an appropriate approach. And that's not a 'one-size-fits-all'. It all starts with a well-executed dual materiality analysis. A process-based, thoroughly determined assessment of which ESG topics your organization must and can focus on. These “material” topics form the scope for measuring, improving, and reporting ESG performance. How you collect these data and whether specific software solutions, existing systems or Excel are used for this, are choices that will be different for every organization. Finally, the manner in which reporting will be done is also a decision that must be both appropriate and distinctive.

These are all topics, choices and process steps that raise a multitude of questions. Sometimes you can be helped with targeted knowledge sharing and deployment of a CSRD consultant in a specific area. Especially now that the focus is on CSRD implementation, but ultimately it is about solid anchoring in your organization. Your people will not only have to be involved now, but will also have to support the CSRD in the longer term.

Based on this principle, we offer support from Ysberg. On the one hand, by involving your internally involved employees in a targeted approach with a cycle of workshops and coaching, which offers them suitable and directly applicable solutions for your organization. On the other hand, by seconding ESG professionals. After all, you do not always have the right or sufficient capacity within your organization. We select suitable candidates and provide the right guidance so that well-equipped in-house employees can contribute to both the implementation and further assurance of the CSRD.

Is CSRD an iceberg? With the right approach and expertise, it doesn't have to be. With Ysberg you can lay a future-proof foundation for your sustainability strategy. We would be happy to discuss how and what we can do for your organization.

Reach out: Eric Schiphorst +31(0)6-13351354 [email protected]