With CONSUST CSRD Consulting, you can navigate the ESRS efficiently and pragmatically
With our CSRD consulting services and the accompanying software—all from a single source—you can effortlessly navigate the challenges of the new European ESG reporting requirements. We offer expertise and innovative solutions, ranging from dual materiality analysis to audit-ready reporting. Master CSRD reporting with us by your side.
CSRD IS MANDATORY FOR COMPANIES IF THEY MEET 2 OF 3 CRITERIA
Why another ESG-Reporting requirement?
The Corporate Sustainability Reporting Directive (CSRD) has a number of important objectives.
Above all, the guidelines developed by EFRAG are intended to make ESG reporting more transparent, trustworthy, and comparable. However, this will make reporting significantly more extensive, with up to 1,100 required data points. To ensure that all disclosed information is relevant and valid, it will be integrated into the annual financial statements and audited by the auditor.
Start early
It still seems like a long way off: Many organizations will have to begin reporting starting in fiscal year 2025. However, preparing this report correctly requires a significant amount of effort. The CSRD includes extensive guidelines, KPIs, targets, and measures, which is why you can’t start early enough to identify relevant elements for your company and plan your data collection. To help you get started with data collection quickly, we offer CSRD consulting and the corresponding CSRD software.
Implement the 4 key changes with our CSRD consulting services
Sustainability reports aim to promote transparency and comparability. The CSRD introduces several new requirements for your company. These requirements can only be implemented efficiently and pragmatically with ESG software. CONSUST’s CSRD consulting services and our FramesCube CSRD software enable you to meet the CSRD requirements in a pragmatic way.
1
Expanded and Standardized Reporting Requirements
Companies must report more comprehensively and according to more uniform standards. Quantifying the content using key performance indicators is intended to improve measurability and comparability. The ESRS standards developed by EFRAG take into account existing regulatory frameworks and the interests of stakeholders.
2
A New Understanding of Materiality
The CSRD enshrines the principle of dual materiality, which requires companies to report on the impacts of their business operations on people and the environment, as well as the impacts of sustainability factors on the company.
3
External Audit as Part of the Management Report
In the future, sustainability reports must be audited by an external auditor, similar to financial reports. The European Commission is establishing auditing standards, starting with a limited assurance audit and later moving to a reasonable assurance audit, which corresponds to the level of detail in financial reporting.
4
Standardized Electronic Reporting Format
Sustainability reports must be disclosed in the European Single Electronic Format (ESEF), which is both machine-readable and human-readable. A dedicated xBRL taxonomy is used for this purpose, which links the ESRS data points to the xBRL tags.
DOUBLE ESSENCE
What does “double materiality” mean?
The impact of sustainability factors on the company (outside-in) and the company’s impact on society and the environment (inside-out) must be disclosed.
This concept changes the materiality principle that has traditionally been used in Germany, making more information relevant for reporting and making CSR reports more comprehensive and meaningful.
In the future, companies will be required to address both perspectives independently of one another in their sustainability reports, whereas previously both aspects had to be met simultaneously.
The outside-in perspective (financial materiality) involves disclosing information that is necessary for understanding the company’s business performance, results, or financial position.
The inside-out perspective (Impact Materiality) illustrates the company’s impact on sustainability issues. In short: What impact does my company have on the planet and society?
The dual materiality analysis is at the heart of every sustainability strategy and should therefore be given due consideration. As part of our CSRD consulting services, we’ll show you how to complete the materiality analysis using software in as little as 7 days.
KEY AREAS OF THE CSRD
Our CSRD consulting services cover more than just the environment
Environmental
The environmental standards encompass five subcategories, including climate change, environmental pollution, water and marine resources, biodiversity, and the circular economy.
Social
Under the social standards, the CSRD requires information on the workforce and local communities at the company’s locations. In addition, employees along the value chain and end consumers must be taken into account . Disclosure of these topics also depends on their materiality.
Governance
The governance standards address business conduct and whether issues such as corruption or bribery are relevant to the organization. In addition, these standards cover specific aspects such as lobbying and delayed payments to partners, particularly small and medium-sized suppliers.
How to Navigate the ESRS Pragmatically and Efficiently with CONSUST CSRD Consulting
We combine profitability with sustainability.
With CSRD’s one-stop consulting and software solutions, you’ll save valuable time and money
We are one of the few companies to offer CSRD consulting and software from a single source. Our CSRD software enables time and cost savings of up to 75% compared to manual data entry. It automates data collection, processing, and reporting, minimizes manual tasks, and reduces human error.
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