Preparing for 2025: CSRD strategies to save time and money

<div class="insights_cta-component">Ask a group of ESG or Sustainability officers where they’ve spent too much time over the past year, and chances are CSRD preparations will appear in nearly all of their top three answers.</div>

For those unfamiliar, the Corporate Sustainability Reporting Directive (CSRD) is a European Union regulation aimed at standardizing and improving sustainability reporting across companies. It requires organizations to disclose their environmental, social, and governance (ESG) impacts in a more detailed and transparent manner, aligning with broader goals of corporate accountability and sustainable growth.

For publicly listed companies, the first reports are due in the coming year (covering 2024). Large private companies - defined as those with more than 250 employees, generating revenue over €40 million, or holding total assets exceeding €20 million - will follow suit in 2026.

While the goal of this legislation - greater transparency, leading to increased impact - is admirable, many companies find the process quite a burden. After all, it involves collecting thousands of new data points, not just internally but across the entire value chain. Add to that the ambiguity in the legislation and the fact that everyone, including accountants, is navigating this for the first time, and it’s no wonder CSRD can feel overwhelming.

But whether you like it or not, your company will need to comply, so why not approach it in the most efficient and valuable way possible? Did you know that your CSRD outcomes and Double Materiality Assessment (DMA) could actually become a competitive advantage?

Drawing from our experience working with sustainability leaders and our expertise in digital and data, we’ve identified five key lessons to help you streamline your approach for the new year:

Use your DMA as a strategic vehicle

While it might be tempting to treat your DMA as a compliance checkbox, the choices you make here are core business decisions. Your DMA defines what to report on and thus where to invest, making it integral to your strategic planning cycles. Treat it as such.

Leverage existing processes

While many ESG data points may be new, much of the underlying processes are already in place. Think about existing product data exchanges with suppliers or global-local financial reporting structures. Rather than setting up entirely new processes, enhance what you already have.

Let Gen AI handle the heavy lifting

Generative AI excels at converting unstructured data into structured insights. Instead of manually consolidating countless Excel sheets, leverage AI for efficiency gains. It can also help establish reasonable assurance in your analysis, for example, through automated benchmarking.

Avoid panic-buying tools

With so many tools flooding the market, it’s tempting to purchase the first one that promises a quick fix. Yet, this often turns out to be a waste of money. Instead, start with your business requirements. Assess what can be solved using your existing systems before investing in new software.

Go beyond reporting

Why not maximize the value of the data you’ve gathered? Highlight key insights to gain a competitive edge—whether in customer pitches or business strategy—and translate them into actionable dashboards that your teams can use for decision-making.

We’d love to explore how your company can make CSRD preparations more efficient and impactful. Let’s connect over a coffee and discuss the possibilities. Here’s to a successful and streamlined 2025!