How can your organisation prepare for CSRD?

CSRD is not just about covering additional requirements in topics such as biodiversity, circular economy, workforce and communities; it’s about creating an ESG reporting management and measurement system based upon materiality, establishing policies and action plans for achieving compliant reporting, clearly defining achievable metrics and targets, and applying overall due diligence on ESG-related activity and disclosure. And reports must cover every business unit globally and be sufficiently robust to withstand an independent, external auditor’s assurance opinion. 

Embracing the objectives of the CSRD can help avoid allegations of greenwashing and assure investors that a company places sustainability reporting on an equal footing with financial reporting. The metrics and targets required by the ESRS can play an important role in transitioning to a sustainable future.

With time running out fast, here are some initial steps to take to get ready for CSRD:

• CSRD readiness assessment: Gain a high-level overview of where a company’s reporting stands in relation to ESRS, to help one understand what their CSRD journey will look like. This is the basis for any successful journey towards compliance.
• Double materiality assessment: Understand what ESG topics are material to report from a sustainability and / or financial perspective; and
• Data readiness assessment: Assess the current quality of disclosures and / or information available; identify and close data and process gaps compared to CSRD requirements.

Source: Jonathan, D (2023, April 25). CSRD in practice: How will it affect your organisation? TimesMalta.https://timesofmalta.com/articles/view/csrd-practice-affect-organisation.1027669