We advise on CSRD compliance

Commencing in 2024, certain companies in the European Union with more than 500 employees that are currently subject to the Non-Financial Reporting Directive (NFRD) will be required to report on their corporate sustainability practices as part of the Corporate Sustainability Reporting Directive (CSRD). Each member State of the European Union will incorporate the CSRD into its own national legislation.

 The European Sustainability Reporting Standards (ESRS) are the detailed reporting standards developed to operationalize the requirements of the CSRD. The ESRS provide specific guidelines on what and how companies should report on their sustainability performance. Key frameworks of ESRS are as follows:

• Double Materiality: Companies must assess and report on both financial materiality (how sustainability issues affect the company) and impact materiality (how the company’s activities impact society and the environment)̦—in other words, impact on the company and by the company.

• Comprehensive Reporting: Disclosures are required across a broad range of environmental, social, and governance (ESG) topics, including climate change, biodiversity, human rights, and corporate governance practices.

• Value Chain Considerations: Companies must report on impacts, risks, and opportunities across their entire value chain. This includes suppliers, partners, and other entities beyond direct operations.

• Governance Disclosures: Companies must report on governance structures related to sustainability, including how sustainability key performance indicators (KPIs) affect executive remuneration.

• Policies, Action Plans, and Targets: Companies must provide disclosures on policies, action plans, and targets for all material topics. The reporting must be transparent in how companies plan to address sustainability issues and track progress.

• Assurance Requirements: Sustainability reports must be subject to external assurance, this ensures reliability and accuracy of disclosed information, requiring a clear audit trail and documentation of processes and controls.

 How we can help

 We work with companies to develop a “Harmonized Story Framework” which provides strategic story alignment across the company, integrated reporting structures, and consistent and compelling stakeholder communications with respect to CSRD.  This Harmonized Story Framework provides a compelling corporate narrative that ensures compliance with regulation, alignment with strategic goals, and stakeholder buy-in. We assist with gap analysis, readiness assessments, materiality assessments, and preliminary report analysis, helping companies navigate the evolving sustainability landscape to ensure consistent and compliant disclosure.