How to Prepare for the CSRD: A Practical Guide for Organisations

As the Corporate Sustainability Reporting Directive (CSRD) takes centre stage in 2025, organisations across the EU and beyond are rapidly gearing up to comply with one of the most ambitious sustainability reporting frameworks introduced by the European Union .

Whether you’re already subject to the Non-Financial Reporting Directive (NFRD) or preparing for the first time, the CSRD brings significant new requirements, including third-party audits, double materiality assessments, and compliance with European Sustainability Reporting Standards (ESRS).

This Governance Ireland article provides a clear roadmap to help our clients navigate CSRD compliance.

Reminder - What is the CSRD?

The CSRD, passed by the European Parliament in November 2022, replaces the NFRD and applies to:

• EU companies already under the NFRD.
• Large businesses with over €40M turnover, €20M in assets, or 250+ employees.
• Non-EU businesses generating €150M+ in annual revenue from the EU.

The directive requires organisations to report on sustainability metrics and their impact on both internal operations and external ESG goals, using double materiality standards.

Key CSRD Compliance Deadlines

Understanding your reporting timeline is critical:

• 2024: NFRD-subject companies must comply, with reports due in 2025.
• 2025: Large businesses begin compliance, with first reports in 2026.
• 2026: SMEs must comply, with reports due in 2027.
• 2028: Non-EU companies with EU revenues must comply, reporting by 2029.

Checklist: How to Prepare for the CSRD

1. Evaluate Your Current System

Take stock of your ESG reporting framework.

• Identify gaps between your existing systems and CSRD requirements.
• Set clear KPIs and a timeline for achieving compliance.
• If you have a later deadline, observe and learn from early adopters.

2. Apply Double Materiality Standards

The CSRD demands a robust double materiality assessment, focusing on:

• How your organisation impacts sustainability (e.g., environmental, social, and governance).
• How sustainability factors influence your business performance.
• Include defined roles, responsibilities, and controls for data collection and reporting.

3. Map Out Risks and Opportunities

Integrate ESG into your risk management processes.

• Identify material risks and opportunities from a sustainability perspective.
• Develop a plan to address those risks while enhancing societal and business value.

4. Build an Auditable Reporting Framework

Prepare for independent verification with an audit-ready system.

• Engage third-party auditors early to streamline the certification process.
• Ensure transparency in calculations and maintain change logs.

5. Leverage Technology for Compliance

Simplify the complexity of CSRD compliance with dedicated tools:

• Automate data collection and anomaly checks.
• Use pre-built, audit-friendly reporting templates.
• Create custom dashboards to provide visibility to executives and stakeholders.

Why Act Now?

CSRD compliance requires significant preparation and oversight from Boards, from ensuring the overhauling of internal processes to implementing robust tracking and reporting systems for the Board. Acting early ensures your organisation stays ahead of the curve, reduces compliance risks, and builds trust with stakeholders.

At Governance Ireland, we are here to help you navigate this transformative ESG journey. From assessing your current Board systems to guiding you through compliance strategies, we ensure your Board and your organisation is ready to embrace the CSRD challenge with confidence.

?? Let’s start the conversation. Reach out to learn how we can help your Board prepare for CSRD compliance and achieve ESG leadership.

#GovernanceIreland #CSRDCompliance #SustainabilityLeadership #ESGStrategy #CorporateGovernance Paul A. White Gráinne Madden Donal Keane Ann Wright, BCL Downes Patrick