What's it about?
The Corporate Sustainability Reporting Directive (CSRD) was already adopted by the European Parliament in November 2022 and will replace the Nonfinancial Reporting Directive (NRFD) in the future. Not only will the scope of application be extended, but the complexity for companies and investors is to be reduced by applying the European Sustainability Reporting Standards (ESRS) as a single framework. The CSRD is introduced gradually, depending on the size and location of the company. Check out our timeline below to see when your company is subject to the CSRD.
Timeline and Scope of the CSRD
Check your current sustainability/ESG management approach
In our research, we have seen companies that have implemented the requirements of the NFRD poorly as they were, e.g., highly inconsistent, which led to losses for the company and society. On the contrary companies with, e.g., highly consistent approaches were very profitable. While being logical matter of fact, this conclusion was confirmed by the results of our study series “Demystifying the links between sustainability/ESG and performance”: 20-29% of financial performance was determined by sustainability management quality and ambition, both in a positive and negative way.
Our mission is to prepare you for the CSRD and save you from the pitfalls of the past. With our analysis framework we can check your current sustainability management approach and align it with the requirements of the CSRD and 30 other frameworks. This will not only ensure that you are complying with the law, but also that you can realize economic benefits for your company by identifying gaps and overshoots while integrating ESG into your business strategy and management.
In five steps to comply to the CSRD – starting from scratch
If you do not yet have a sustainability strategy for your company, or if you want to revise individual parts of your strategy, we can help you in 5 logical steps. Our PI Strategy approach offers tailor made solutions to holistically integrate the requirements into your strategy while ensuring a strategic fit. If you only need support with individual aspects, such steps can also be carried out individually. However, we generally recommend to follow the logical order of the steps for good reasons.
Your 5 Steps journey to be CSRD ready:
- Setting Direction & Scope: Status quo & Benchmarking, Scoping (Initial Ambition) Workshop(s) and Roadmap design
- Determination of ESG Impacts: Inside-out / outside-in analysis, scenario analysis, risk, and opportunity identification, quantification (incl. data collection) and materiality assessment
- Strategy Integration: Mapping impacts with current strategy to identify gaps and close those gaps, decide upon the final ambition
- Process integration: Board oversight, internal reporting, controls, measure monitoring, ESG financing, employee training, etc.
- Consistent Communication: Reporting strategy, equity story / ESG rating and ESG assurance approach