RECOMMENDATIONS AND FINAL INSIGHTS
EU CSRD reporting is just the start — sustained progress in sustainability performance will be key to success
The EU CSRD represents a significant shift for businesses across Europe
From a regulatory standpoint, it raises the bar on transparency and accountability. From a growth perspective, the sustainability performance improvements it inspires open the door to innovation and strengthens brand equity.
But, critically, the ability for companies to adapt and innovate their practices will be key in truly determining the regulations' impact on sustainability.
Building a sustainability strategy that fully integrates EU CSRD requirements is multi-faceted. A key concept at the foundation of this is double materiality — the ability to assess both the financial impact of your sustainability efforts on the company and your impact on society and the environment.
Based on our survey findings and experience helping customers navigate EU CSRD, here are some high-level recommendations:
Start now – and consider a dry run
EU CSRD compliance is complex and new. And while regulators won't expect perfection immediately, they will demand transparency and quality. Companies that start their EU CSRD reporting initiatives earlier will have time to work out the kinks. Moreover, doing a dry run will uncover potential gaps in data, processes and tools and allow time to adjust and enhance before submitting your first-year reporting.
Prioritise financial-grade reporting to ensure transparency and auditability
Public disclosures can carry the risk of greenwashing allegations. To mitigate this, data must be both transparent and auditable. Ensure that the data you collect and the findings you report meet the same rigorous standards as your financial reporting. Engage with professionals who can substantiate your claims and avoid unintentional pitfalls, helping you maintain credibility and trust with stakeholders.
Be confident about your climate change reporting
The survey highlighted that climate change reporting poses a particular challenge — and for good reason: It's complicated. It is governed by unique methodologies that must be closely followed. And that process takes time.
Leverage EU CSRD as a strategic enabler
While penalties for EU CSRD non-compliance are significant, the real opportunity lies in embedding sustainability into your core business strategy. Companies that align their EU CSRD reporting with broader business goals—such as driving innovation, enhancing operational efficiency, and building long-term brand equity—are best positioned to be confident in your compliance initiatives and growth strategies.
