Our 5 Simple Steps to CSRD Reporting
It can be hard to know where to start when it comes to CSRD reporting. The EU’s Corporate Sustainability Reporting Directive, otherwise known as the CSRD, requires businesses to report on their environmental and social impact like never before. It’s a positive step forward for reducing harmful business practices, but if you’re struggling to know where to start, you’ve come to the right place!
What is required for CSRD reporting?
The CSRD requires you to collect and manage a variety of non-financial data related to your business, and report on your sustainability performance regularly. You must ensure that the information you report is accurate, reliable and comparable and have it verified by independent auditors.
CSRD reporting also requires you to engage with relevant stakeholders throughout your data collection process to understand the full impact of your business.
If you’re looking for guidance on how to engage your stakeholders, check out our helpful guide here: How to Engage With Stakeholders
Step 1: Set up a task force
First, create a task force. Cross departmental collaboration is essential for successful CSRD reporting so you should put together a dedicated team to tackle the project together.
At this stage, it’s also beneficial to identify and build relationships with your various relevant stakeholders. These include your employees, suppliers, customers, local communities and public authorities.
Step 2: Conduct a double materiality assessment and gap analysis
The next step is to work with your stakeholders to identify the environmental, social and governance (ESG) topics that matter most to your business. Use your findings to analyse your current performance in these areas and create an action plan.
Need help understanding double materiality? Read our guide to Double Materiality and how to focus on the issues that matter the most
Step 3: Decide on your data collection processes
Next, you need to decide how to collect the data you need, and who will manage it. The best place to start is by mapping your data. Data mapping is essential to understand where your data is coming from and how it is quality assured – meaning how you know it is accurate and reliable.
From there, you can review your existing data management processes and decide whether you need to upgrade your current software or implement a new system entirely. At this stage, it’s important to establish procedures for ensuring the data you collect is accurate. This will make it much easier when you get to the independent audit and assurance stage of the CSRD reporting process.
Thinking about upgrading or changing your data systems?
We know the sustainability software market inside out and can guide you to the right choice for your business. Find out more about our software selection services
Step 4: Start data collection & information gathering
Once you have your processes in place, it’s time to start collecting your data. But don’t leave this until the last minute. You should start gathering data and perfecting your collection methods far ahead of your first CSRD report.
By conducting a pilot run, you can identify any gaps and address any issues in plenty of time. A small-scale trial run like this can help improve the design and implementation of your data collection processes.
Step 5: Get ready for CSRD reporting & auditing
Finally, it’s time to have your data independently verified by an auditor. You can’t mark your own homework, and external audits ensure your data is trustworthy, stamping out any risks of greenwashing.
There are two types of assurance you can choose for your report: limited or reasonable. Limited assurance is a less-costly option which is perfect for small businesses at the beginning of their sustainability reporting journey. Reasonable is the highest level of assurance offered, and auditors will visit your sites in person to verify that the information you have provided is truthful and accurate.
We provide a full breakdown of what the assurance process means, alongside in-depth guidance for CSRD reporting, in our EU CSRD Navigator Whitepaper.
Our Whitepaper is an ultimate guide to the EU CSRD and its transformative impact on business reporting practices. Download our free Whitepaper
Next Steps
The EU’s Corporate Sustainability Reporting Directive is a big change for businesses and an important step towards an industry that protects both people and our planet. But don’t let the complexity and importance discourage you.
Whether you’re a global corporation with international reach or a small business who wants to start measuring their impact, we can help you with your CSRD reporting journey. From engaging with your stakeholders to data management and software selection, we can find a tailored solution to suit your needs.
