This page describes steps specific to CSRD framework. For more general information on ESG Reporting workflow, check this article.
Introduction
The Corporate Sustainability Reporting Directive (CSRD) is a significant development in corporate governance, requiring businesses to enhance their transparency and accountability regarding environmental, social, and governance (ESG) matters. As sustainability becomes a pivotal factor in business success and regulatory compliance, understanding the CSRD process is crucial for companies.
This article will guide you through the main steps of Greenly’s CSRD offer, explaining the workflow and requirements at each stage.
After you've put in place the general first ESG reporting steps, you can start the following in your CSRD project.
1. Preparation of Reporting Perimeter
This step involves framing the project, for example, by mapping the company's activities. Through this module, you are invited to describe your operations, define clear geographical boundaries to ensure compliance with the CSRD, and establish the various deadlines for each project phase.
To correctly define your reporting perimeter, you will receive our onboarding module. This document outlines the roadmap and scope of services for your subscription year. It also provides guidance on setting up an ESG committee and support for organizing your kick-off meetings.
As a reminder, the CSRD allows for a comprehensive analysis of the company's environmental impacts, and vice versa: a well-defined reporting scope guarantees relevant and compliant ESG reporting.
For expert guidance on smoothly advancing your CSRD initiative, please contact your ESG specialist.
2. Filling in the Double Materiality Forms
Understanding Double Materiality
Double materiality is a core principle of the CSRD, requiring companies to assess both the impact of their activities on the environment and society (impact materiality) and how these factors affect their financial performance (financial materiality).
Filling Out the Forms
Greenly’s platform facilitates the double materiality assessment through structured forms, each addressing different ESG topics. The forms should be completed by internal contributors with relevant knowledge. Key steps include:
Collaboration: Engage multiple departments (e.g., HR, operations, finance) to provide comprehensive input.
High-Level Information: At this step, only qualitative and high-level information is required.
3. Validation of Double Materiality Analysis
Scoring and Validation
Once the forms are completed, Greenly's scoring system - in line with EFRAG recommendations - analyzes the responses to identify the most significant (material) issues for the company.
This analysis results in the creation of a double materiality matrix, providing an overview of the ESRS deemed material. A supplementary table specifies the degree of materiality at the sub-theme level.
All of these results must then be validated by the company's key stakeholders and its board of directors.
4. Data Collection of all Material ESRS Datapoints
Comprehensive Data Collection
Collect data for all material European Sustainability Reporting Standards (ESRS) datapoints, ensuring compliance with CSRD requirements. This step involves:
Proof Management System: Gather supporting documents to meet audit requirements.
Project Management: Assign data collection tasks to ensure accountability.
5. CSRD Sustainability Report
Crafting the Final Report
Once all the preparatory stages have been completed, the final step is to compile and present the CSRD Sustainability Report. This comprehensive document is vital for stakeholders to understand the company’s sustainability practices and impacts fully. The CSRD Sustainability Report not only fulfills European regulatory requirements but also serves as a tool for improving corporate transparency and building trust with stakeholders. By effectively communicating its sustainability performance, the company can strengthen its reputation and competitive edge in a sustainability-conscious market.
Conclusion
Greenly simplifies the CSRD process by providing a structured and comprehensive approach to ESG reporting. By following the steps outlined in this article, companies can ensure compliance, enhance transparency, and build a sustainable future. Reach out to Greenly for expert support and guidance in your CSRD journey.