CSRD/ESRS Hacks You Can’t Miss

Hello friends,?

We’ve gathered the most up-to-date materials we published recently about the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) in order to guide you step-by-step to achieve full compliance.?

Here is a major rundown of all the information you should know by now to build a strategy for your business and all the hacks you need to get things done effectively!?

And of course, you can always request a Demo of our all-in-one ESG platform that helps all companies gather their data, manage their Supply Chain, and report on their Sustainability performance to the main regulations. Request a Demo here!

CSRD/ESRS Hacks You Can’t Miss - in bullet points!

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How to Master the Corporate Sustainability Reporting Directive (CSRD)

• The CSRD is a new framework for sustainability reporting in the European Union, which requires companies to report on their sustainability performance as part of their management report;
• CSRD applies to all listed companies on EU-regulated markets, including small and medium-sized enterprises (excluding micro-enterprises). And also to all large companies, listed or not, that meets at least 2 out of the following criteria: balance sheet total of more than EUR 20m; Net turnover of more than EUR 40m; Average number of employees during the financial year exceeding 250;
• To get your reports prepared, you must ensure that data integrity, transparency, and appropriate structures are in place to prepare and comply with the ESRS and CSRD requirements. The use of software for the collection, analysis, and reporting of sustainability data can simplify this process;?
• Consider seeking expert guidance for tasks like gap analysis and double materiality assessment. Training your team on CSRD and ESRS is essential for compliance and effective reporting.

Our CSRD Full Guide is available here for more insights!

Your ESRS and Double Materiality Step-by-Step Guide

• According to the European Sustainability Reporting Standards (ESRS) as part of the CSRD, companies have to do a double materiality assessment by considering both impact materiality and financial materiality;
• Double Materiality refers to a company’s information on (A) factors that can impact a firm's financial value and (B) the potential impact of a company's operations on climate change and the environment;?
• Step 1: Know the context. Analyze your value chain’s effects on the environment, society and governance along the whole process of creating and delivering your product. For that, it’s crucial to engage with stakeholders that are part of or affected by the company’s operations;
• Step 2: Identify the impact. Here you identify actual and potential impacts, both negative and positive, by engaging with relevant stakeholders and experts. You must gather information on the sustainability matters important to stakeholders and determine which ones are most significant to your operations;
• Step 3: Assess the impact. At this moment, you should assess the current and potential impacts identified in Step 2, considering both quantitative and qualitative factors when assessing materiality, such as the magnitude of the impact, its likelihood of occurring, duration, and if it’s reversible;
• Step 4: Take action. Determine the material matters, which means identifying the most sustainability matters to your operations and stakeholders, based on the results from previous steps. You should consider both positive and negative impacts and short, medium, or long-term time horizons.

Download our ESRS Double Materiality Factsheet here for more guidance!

Planning and Executing your CSRD/ESRS Strategy

In order to plan and execute a great CSRD/ESRS strategy for your business, keep in mind the following deadlines:

• By 2025: Companies already under the NFRD must begin reporting for the 2024 financial year;
• By 2026: Large undertakings not previously subject to the NFRD must begin reporting for the 2025 financial year;
• By 2027: Small and medium enterprises, small non-complex credit institutions, and captive insurance undertakings must begin reporting for the 2026 financial year;
• By 2029: Non-EU companies with branches or subsidiaries must commence reporting.

We just released an Action Plan for CSRD/ESRS here for your business!

We’ll keep you posted!

Our holistic platform covers all the main regulations your company should be managing, tracking, and reporting - such as the CSRD/ESRS, and the LkSG in Germany.

• We conduct risk assessment and analysis on a deeper level in your supply chain to make sure you’re not caught off guard
• We offer media monitoring of potential risks across the globe for you to avoid or respond to them
• We put your data together from different teams and suppliers and guarantee that its auditable documentation and reporting are on point with the main regulations

Here you can reach out to our team for a Demo, and see the best way we can get your Sustainability Reporting done!

Cheers!