CSRD Negotiations — What to Expect

The European institutions are entering final negotiations on the Corporate Sustainability Reporting Directive (CSRD). The direction is clear: sustainability reporting will become part of mainstream corporate governance. However, implementation details remain under discussion.

• Scope likely extended to most large and listed companies.
• Mandatory third-party assurance expected from the start.
• Alignment with EU Taxonomy and SFDR reinforced.

We summarize the main proposals and their implications for business strategy.

Impact Accounting — A Unified Framework

PI’s Impact Accounting Framework provides a consistent logic to measure positive and negative real-world impacts across topics such as climate, biodiversity, water, and health. It translates impacts into comparable units and monetary terms, making sustainability data actionable.

• Quantifies both positive and negative effects using the same methodology.
• Applies context-based thresholds for significance.
• Supports financial and non-financial reporting under the CSRD.

Linking Impacts to Strategy

We introduced the PI Strategy Framework to help organizations connect sustainability results with strategic ambition. It defines five ambition levels, from “No Ambition” to “Sustainability Driven,” helping boards identify transition pathways.

Integrating impacts into strategy ensures that sustainability efforts deliver measurable business value rather than isolated reporting exercises.

Upcoming Events

• Webinar: “Understanding the CSRD” — October 19 · Online.
• Workshop: “Materiality Made Practical” — October 28 · Cologne.
• Publication: “The Link Between Impacts, Value, and Strategy” — new article in ESGZ magazine.