On January 5th, 2023, the CRSD was introduced, superseding the Non-Financial Reporting Directive (NFRD) and expanding its reporting requirements.
According to Greenomy, this directive aims to improve the transparency and comparability of ESG data across the EU, facilitating better sustainability assessments of companies by investors and other stakeholders.
The CSRD brings forth several new elements to ESG reporting, notably the Double Materiality principle which mandates companies to consider both the financial impact and the impact of their operations on sustainability.
Furthermore, the European Sustainability Reporting Standards (ESRS) are set to standardise the way ESG data is reported, enhancing communication on corporate impacts, risks, and opportunities.
Compliance with the CSRD can be daunting due to its complexity and the requirement to disclose over 1,200 data points. This necessitates robust tools and processes for accurate reporting.
The process begins with a Double Materiality Assessment (DMA), where companies assess and categorise their Impacts, Risks, and Opportunities (IROs) to determine the scope of their sustainability reports. This step is critical as it dictates which aspects of the ESRS will be pertinent to the report.
Gathering the necessary data is a significant hurdle, often compounded by poor data quality, lack of cooperation across departments, and difficulties in data acquisition along the value chain. A comprehensive value chain map and robust stakeholder communication are essential for accessing reliable data and understanding the full extent of a company’s IROs.
After delineating their reporting scope, companies must conduct a Gap Analysis to pinpoint discrepancies between the data they possess and what needs to be disclosed under the CSRD. This analysis helps in project planning and the identification of responsible parties for data collection, thereby streamlining the reporting process.
Greenomy offers tailored solutions to address the challenges of CSRD reporting. Their tools aid companies in managing data, enhancing cross-departmental collaboration, and deepening their understanding of operational impacts. These improvements not only support compliance but also foster trust and align business practices with societal values, potentially reducing capital costs and attracting investments.
Greenomy’s preliminary assessment helps narrow down the CSRD’s scope to focus on relevant data points through a structured questionnaire. Following this, their Gap Analysis tool aids in distinguishing between mandatory and optional data points, identifying critical data gaps, and promoting proactive improvement efforts within the company.
Greenomy’s solutions facilitate the entire CSRD reporting process. From initial data gathering to final report preparation, their tools provide comprehensive support. They ensure that companies can navigate the complexities of the ESRS effectively, providing a streamlined workflow for managing and reporting sustainability data accurately.
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