We have now completed our first CSRD reporting process, and the ESRS-based sustainability report is ready. While the future of the European sustainability reporting framework remains uncertain, many companies have already accepted the challenge, and the CSRD process is being widely adopted in the EU. This project has been a valuable learning experience, so we would like to share a few key observations.
The ESRS Standard Defines the Report’s Structure and Content
The CSRD process encourages collaboration across the organisation. Responsibility for sustainability disclosure lies with the board, so it is essential that company leadership is fully committed. The ESRS standard also involves people from different parts of the organisation, which helps make the report a shared effort. Engagement tends to be stronger when the work feels personally relevant.
Effective Cooperation with the Verifier Is Important
The first reports involve a learning curve, but a reliable verifier can help manage the process and ensure the quality of the report. Planning a clear audit trail in advance is advisable. Verifiers will need access to key documents and original data, such as policies and emission calculations. Preparing these well ahead of time helps keep the project on schedule.
Reporting Options Following the Omnibus Proposal
Reporting according to the ESRS standard is particularly worthwhile if sustainability is a strategic priority. ESRS provides a comprehensive framework covering all material sustainability issues.
The Omnibus proposal has prompted discussion about whether ongoing CSRD projects should continue. If your project is already underway or well advanced, it is generally advisable to complete it to gain the full benefits of sustainability reporting and avoid sending mixed messages to stakeholders. In addition, if a Double Materiality Assessment was carried out before the Omnibus proposal, identifying relevant standards and data points remains straightforward.
For larger companies with sufficient resources, ESRS reporting can provide a competitive advantage by making sustainability efforts easier to compare across organisations within the CSRD scope. However, if your company is new to sustainability reporting, if ESRS reporting is not yet required by law or partners, or if the process seems too demanding, the VSME standard may be a more suitable alternative. This voluntary standard is designed for micro, small, and medium-sized enterprises, providing a simpler but comparable framework for starting sustainability reporting.
If you would like to discuss which reporting option best suits your company, send us a message and we’d be happy to assist.
