Sustainability reporting | Get to know the CSRD-Directive

Get to know the CSRD-directive and how to implement it in your company

What is CSRD (Corporate Sustainability Reporting Directive)?

The Corporate Sustainability Reporting Directive (CSRD) is an EU directive that comes in the wake of the EU's major green plan, "The European Green Deal" from 2019. The goal of The European Green Deal is for Europe to be CO2-neutral in 2050 as the first continent in the world. One means of achieving this is to create transparency in companies' reporting on their work with sustainability.

Companies should regard CSRD as a good occasion to incorporate sustainability into their strategy and business development while also taking the opportunity to look at risk management in the process.

Who is affected by CSRD?

The CSRD replaces the current NFRD (Non Financial Reporting Directive) and initially affects all listed companies. The new CSRD directive takes effect in 2024 and is continuously expanded to include more and more companies. This means that the new legislation will have great significance for many companies.

For the affected companies, CSRD is not a choice but a legal requirement. The affected companies are required to conduct a CSRD report and include it as part of their annual report.

How does a company get started with CSRD?

It is a good idea to prepare your CSRD reporting now. A large part of the work lies in collecting the necessary data, which must be included in the coming year's reporting.

The process towards preparing one's CSRD reporting contains several elements and is typically a fairly iterative process. In our experience, the process broadly includes the following steps:

Establish the team around the reporting, which, among others, will include management representatives, experts, category owners and officers responsible for the reporting.
Carrying out a double-materiality assessment and due diligence, as well as determining the company's supply chain, in order to identify the ESG parameters the company must include in its CSRD reporting.
Carry out a GAP analysis that identifies any shortcomings necessary to comply with the requirements of the relevant ESRS (European Sustainability Reporting Standards).
Develop or streamline existing policies, action plans and objectives necessary to comply with the requirements of the ESRS.
Identify the information requirements and measurement points that are necessary to comply with the requirements of the ESRS.
Carry out a data collection process that collects relevant retrospective information and information on future initiatives.

Our CSRD consulting includes:

Clarification of strategy, business model and value chain
Double Materiality Assessment
GAP analysis in relation to ESRS
ESG Due Diligence
Development of policies, action plans, objectives
Identification of data points and sources / selection, "setup" or development of a system for data collection
Preparation of carbon footprint reports, models for calculating emissions etc.
Science Based Target
Third party control (but not audit)

Interactive graphic and text layout for NIRAS' website on the Corporate Sustainability Reporting Directive (CSRD), presenting information and key points about sustainability reporting. The layout employs a minimalist white and blue color palette with modern fonts to highlight the company’s commitment to environmental responsibility

This is how we advise companies in CSRD

It is a good idea to seek advice early in the process. NIRAS can assist with sub-elements of the process or tie all ESG data together to realise your sustainable potential. Contact one of our many experts if your company needs help with CSRD reporting. We have a strong network of interdisciplinary expertise ready to advise you.