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Discover how CSRD compliance and sustainability reporting can strengthen your corporate responsibility and improve your market position at the same time.
The Corporate Sustainability Reporting Directive requires companies to prepare their sustainability reports in accordance with the European Sustainability Reporting Standards (ESRS). These standards promote transparent reporting on environmental, social and corporate governance practices.
As a central component of the EU Green Deal, the CSRD aims to steer the European economy onto a sustainable path for the future by enabling comparability between companies and creating transparency in sustainability indicators.
EU Green Deal
Sustainable Finance: EU Action Plan
"Financing sustainable growth"
Other instruments: Sustainable Finance Disclosure Regulation (SFDR), Sustainability Preferences, Climate Benchmark Regulation, Standard for green bonds
With the entry into force of the CSRD, the group of companies subject to reporting requirements has been expanded compared to the previous Non-Financial Reporting Directive (NFRD), also known as Directive 2014/95/EU. As a result, reporting in accordance with the CSRD is mandatory for a larger number of companies.
It applies to companies:
Inventory
Recording and analysing the current strategies, controls and reporting systems to create a project outline for CSRD implementation.
Significance analysis
Carrying out the double materiality analysis in accordance with ESRS requirements to identify material issues, opportunities and risks.
KPIs and data points
Identification of relevant data to fulfil the CSRD requirements and limitation of the ESR disclosure points by comparing the materiality analysis results.
GAP analysis
Comparison of the data and measures required under the CSRD with the current status to identify and close gaps using internal and external sources of information.
Reporting
Definition and customisation of all processes for data collection and preparation of the non-financial statement in accordance with CSRD using existing tools.
The European Sustainability Reporting Standards (ESRS) define the standards to which companies must report in accordance with the CSRD. They define the subject areas and specify the reporting obligations in relation to social, environmental and governance aspects. The aim of these standards is to create a comprehensive and comparable database that enables investors and stakeholders to effectively assess the sustainability performance of companies. This initiative promotes transparency and accountability by ensuring that companies disclose relevant information about their impact on society and the environment.
The topic-specific ESRS are:
Climate change (E1)
Environmental pollution (E2)
Water and marine resources (E3)
Biodiversity and ecosystems (E4)
Resource utilisation and circular economy (E5)
Own workforce (S1)
Labour in the value chain (S2)
Communities concerned (S3)
Consumers & end users (S4)
Corporate policy (G1)
A materiality analysis in accordance with the CSRD is a process that helps companies to identify and prioritise the relevant environmental, social and governance topics on which they must report. As part of this analysis, it is determined which topic-specific ESRS are important for the respective company.
This analysis is based on the concept of dual materiality. Two perspectives are taken into account:
1
Together, we analyse the status quo of your company, the relevant environment, important regulations and current studies in order to obtain a comprehensive picture of relevant sustainability issues. Based on these findings, we conduct stakeholder and expert surveys together using our Online Materiality Assessment (OMA) tool. We then jointly assess the materiality of the identified topics, provide sound reasons for the selection and carefully document the results of the materiality analysis.
2
We support you in identifying the relevant data and declarations required to fulfil the CSRD requirements for the material topics. We work with you to narrow down the ESRS disclosure points by comparing the results of the materiality analysis. For support, we use our CSRD reporting tool SUSRETO, which performs a fully automated comparison of the material topics with the ESRS list.
3
In the gap analysis, we jointly compare the data, declarations and measures required by the CSRD with the current status of your sustainability reports. We identify internal and external sources of information in order to close the identified gaps. We then carry out a joint review and provide you with recommendations for obtaining the necessary information and adapting your data processes.
4
Together, we define and document all processes from data collection to the preparation of the non-financial statement in accordance with CSRD. We coordinate the processes and content closely with your risk management, auditors (WP) and management (GF). If necessary, we jointly adapt the sustainability strategy, targets and measures. We integrate existing or new tools for data collection and reporting and, if necessary, design a test run from data collection to report preparation.
SUSRETO stands for Sustainability Reporting Tool and is an innovative software solution developed by experienced sustainability experts and renowned IT specialists.
IT specialists.
We are a passionate team with different backgrounds and experience in all areas of sustainability management. A team that makes the world a little bit better with its work.
Yes, there are several standards for sustainability reporting in addition to CSR reporting. Here are some other important standards:
German Sustainability Code (DNK): A standard that supports companies in the preparation of sustainability reports and promotes transparency with regard to sustainable business processes.
Global Reporting Initiative (GRI): Provides comprehensive guidelines for the preparation of sustainability reports that are recognised worldwide.
Sustainability Accounting Standards Board (SASB): Develops industry-specific standards for the disclosure of material sustainability information.
Integrated Reporting (IR): Combines financial and non-financial information to provide a comprehensive picture of the company’s performance.
Task Force on Climate-related Financial Disclosures (TCFD): Provides recommendations on the disclosure of climate-related financial risks and opportunities.
These standards help companies to communicate their sustainability performance systematically and transparently.
Sustainability reporting is crucial as it increases transparency and strengthens stakeholder trust. Companies that report openly on their environmental and social practices gain the trust of customers, investors and the public. This reporting promotes sustainable business practices by encouraging companies to monitor and improve their environmental and social impacts. In addition, well-executed sustainability reporting can increase a company’s long-term competitiveness by encouraging innovation and minimising the risk of environmental and social problems.
The implementation of the Corporate Sustainability Reporting Directive (CSRD) poses several challenges:
A company can ensure the credibility of its sustainability report in the following ways:
External verification and audits: Independent audits by external experts increase the credibility of the reports.
Compliance with international standards: The use of recognised standards such as GRI or DNK ensures that the report is comprehensive and comparable.
Transparent reporting: Disclosure of the data sources and methods used to collect and analyse data creates trust and enables a comprehensible assessment of the reported information.
Financial reporting focuses on the presentation of a company’s financial performance, including profit, loss, assets and liabilities. Its primary purpose is to inform investors and other financial stakeholders about the economic situation of the company.
Non-financial reporting, on the other hand, includes information on the environmental, social and governance (ESG) aspects of a company. These reports provide information on topics such as environmental management, social responsibility, working conditions and ethical behaviour. They are crucial for a comprehensive understanding of a company’s overall performance and sustainable practices.
Sustainability reporting contributes to risk minimisation by identifying and managing ESG (environmental, social and governance) risks:
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