Sustainability Leadership | Speaker at COP28 | Sustainable Finance - Product Innovation | Driving Commercial Success with Environmental Responsibility
A quick guide to navigate #csrdreporting - As many companies in the EU prepare for CSRD/ESRS reporting, managing the disclosure requirements can seem overwhelming. Here are some recommendations to assist you and your organization in this preparation: 📍Framework Mapping and Gap Assessment For companies required to publish CSRD/ESRS disclosures in FY25, it's essential to recognize the interoperability with other frameworks like GRI, SASB, TCFD, ISSB, EU Taxonomy, and local stock exchange reporting guides. Conduct a framework mapping and gap assessment exercise. 👓 Material Topics Assessment Identifying and finalizing material topics is crucial. Perform a double materiality assessment as outlined in ESRS 1, focusing on both impact materiality and financial materiality. Financial materiality can be assessed qualitatively or quantitatively. Ensure clear disclosures of the approach adopted. 🔍 Disclosure Requirements Analysis Examine the disclosure requirements under each ESRS standard based on your material topics assessment. Remember, not all standards will apply, which can be a relief! 🎯 Setting Targets and Monitoring Progress Establishing ESG KPIs and tracking progress against them is key to effective reporting. Don't panic if no targets established, this is a start and disclose the organization’s plans on targets and roadmap. ⛓️ Value Chain Analysis Conduct a thorough analysis of sustainability matters related to your value chain, including Scope 3 emissions, policies for suppliers or vendors and monitoring, etc. 🛂 Integrating Internal Controls Extend your internal control framework to sustainability reporting. The three lines of defense model is just as important for non-financial reporting (NFR) as it is for financial reporting (FR). This will enable audit trail and a less onerous assurance processes. By developing a step-by-step action plan along with a clear roadmap, you can navigate CSRD reporting more effectively. Data quality and aggregation of the numerous data points - qualitative and quantitative would be a challenge that needs careful project management techniques. Not to forget, a balance is needed to effectively communicate the sustainability efforts to all the stakeholders without over emphasis (stick to true facts and avoid painting unrealistic green picture). As pointed by the German Justice Minister - “In the meantime, he told companies and supervisors to “use some common sense. Our single most important message at the moment is: let's make sure that we implement these standards in a proportionate and in a pragmatic way.” #csrd #esrs #reporting #digitaltools #netzero
