Insight #1
EU CSRD strategies are well underway— companies are thinking beyond mere compliance and sanctions
Key Finding
Companies view EU CSRD as a catalyst for embedding sustainability within core operations, with most respondents expecting this shift over the next 3-5 years.
Over the next 3–5 years, the majority of respondents anticipate that EU CSRD will push them to integrate sustainability more deeply into their business functions.
This shift is particularly significant for mid-market companies—89% of mid-market respondents foresee a strong impact on embedding sustainability practices, as they work to catch up with larger enterprises on EU CSRD readiness.
Compliance is key, but most respondents are focused on performance
EU CSRD and other mandatory reporting requirements are essential, but sustainability leaders recognise this is more than a compliance exercise. Stakeholders expect EU CSRD to drive better sustainability practices.
This mandatory approach differs from voluntary schemes, ensuring comprehensive, organization-wide integration.
Notably, none of the respondents believe compliance will detract from sustainability efforts by diverting resources.
EU CSRD impacts over the next 3-5 years
All Responses
It will prompt us to integrate sustainability more deeply into our core business operations
It will pose significant challenges, but we believe it will ultimately drive positive change
It will enhance transparency but won't significantly change our overall sustainability
It hinders sustainability performance by diverting resources towards compliance
Mid-market view*
It will prompt us to integrate sustainability more deeply into our core business operations
It will pose significant challenges, but we believe it will ultimately drive positive change
It will enhance transparency but won't significantly change our overall sustainability
It hinders sustainability performance by diverting resources towards compliance
* Respondents indicating annual revenues €50M-€999M
Mandatory and voluntary reporting frameworks respondents are reporting on
Mandatory reporting frameworks
EU Corporate Sustainability Reporting Directive (CSRD)
Streamlined Energy and Carbon Reporting (SECR)
Corporate Sustainability Due Diligence Directive (CSDDD)
International Sustainability Standards Board (ISSB)
EU Taxonomy
Voluntary reporting frameworks
Carbon Disclosure Project (CDP)
Global Reporting Initiative (GRI)
Science-Based Target Initiatives (SBTi)
Companies face internal and external pressures for sustainability disclosure
EU CSRD regulations are among the many pressures on companies to disclose their sustainability performance. In addition to several voluntary and mandatory disclosure schemes, they have the potential to improve the quality and comparability of disclosures, as well as to improve sustainability performance.
While performance improvement and compliance are primary drivers for tracking sustainability, nearly three-quarters of respondents also cite specific requests and expectations from key stakeholders.
Investors, board members, consumers, and employees each have expectations that shape sustainability priorities and reporting, though respondents identified investors and the board as the most influential.
Drivers for tracking sustainability performance
Improving our performance and reducing our negative impacts
Reporting to mandatory frameworks
Responding to requests and expectations from key stakeholders
