There is a growing demand for transparent and reliable information on companies’ environmental, social and governance (ESG) performance. Companies subject to the CSRD are required to disclose certain ESG information to ensure transparency. <\/p>\n\n\n\n
In complying with the CSRD, companies must follow the European Sustainability Reporting Standards (ESRS). The ESRS provide a framework for what information should be disclosed in the report and how it should be presented. The European Financial Reporting Advisory Group (EFRAG<\/a>), of which osapiens is an official “Friend of EFRAG” partner, has published important guidelines<\/a> to help companies optimize their sustainability reporting. This blog post summarizes the steps. <\/p>\n\n\n\n \u00a0<\/strong><\/p>\n\n\n\n Step 1: Understand the CSRD and clarify responsibilities<\/strong> <\/p>\n\n\n\n The Corporate Sustainability Reporting Directive (CSRD) poses new challenges for companies. To ensure that your sustainability report meets the requirements, it is important to understand the basics of the Directive: What are the requirements? What data is required? <\/p>\n\n\n\n Another important step is to clarify who in your company is responsible for implementation. Often there is a lack of clear accountability because the CSR Directive is relatively new, and many companies do not have a dedicated ESG department. Consider whether external support, such as consulting services or software solutions, might be useful to make the process more efficient. Regardless of who takes responsibility, a solid understanding of CSRD is the foundation for success. <\/p>\n\n\n\n Step 2: Conduct the dual materiality analysis<\/strong> <\/p>\n\n\n\n The dual materiality analysis is at the heart of the CSRD. It helps companies identify the truly relevant ESG issues. It is based on the European Sustainability Reporting Standards (ESRS), which cover 12 main topics and numerous subtopics. <\/p>\n\n\n\n In practice, this means that IROs (Impacts, Risks, Opportunities) must be developed for each topic (see below). These are then evaluated and classified as material or non-material. This filtering process ensures that only the issues that are relevant to your business and stakeholders are reported on. <\/p>\n\n\n\n Step 3: Collect and Analyze Data<\/strong> <\/p>\n\n\n\n After the materiality analysis, the next step is to collect and analyze the necessary data. This phase is similar to a traditional gap analysis. It involves identifying data gaps, obtaining missing information, and processing existing data. The goal is to build a solid foundation for the subsequent report. <\/p>\n\n\n\n Step 4: Preparing and Submitting the Sustainability Report<\/strong> <\/p>\n\n\n\n The final step is to prepare the report. All of the collected data and findings are compiled into a structured document. The sustainability report summarizes your company’s material ESG issues in a clear and concise manner and is submitted in accordance with CSRD requirements. A well-prepared report not only meets legal requirements but also provides a valuable basis for strategic decisions and stakeholder dialogue. <\/p>\n\n\n\n A comprehensive materiality analysis looks at ESG issues from two perspectives: Inside-Out and Outside-In. The key components of materiality analysis are the IROs – Impacts, Risks and Opportunities. Impacts are considered from an inside-out perspective, while risks and opportunities relate to the financial materiality of the company. In general, companies are required to prepare and assess specific IROs for each ESRS category. Only those issues identified as material are included in reporting. <\/p>\n\n\n\n Inside-Out (Environmental and Social Materiality):<\/strong> <\/p>\n\n\n\n Outside-In (Financial Materiality):<\/strong> <\/p>\n\n\n\n The combination of both perspectives provides a comprehensive understanding of all relevant ESG issues. It forms the basis for identifying material IROs and helps companies to develop and communicate their sustainability strategy in a targeted and transparent manner. <\/p>\n","protected":false},"excerpt":{"rendered":" There is a growing demand for transparent and reliable information on companies’ environmental, social and governance (ESG) performance. Companies subject to the CSRD are required to disclose certain ESG information to ensure transparency. In complying with the CSRD, companies must follow the European Sustainability Reporting Standards (ESRS). The ESRS provide a framework for what information should be disclosed in the … <\/p>\nSustainability Reporting Made Easy: How to Implement the CSRD<\/strong><\/h2>\n\n\n\n
Deep Dive: Dual Materiality Analysis <\/strong><\/h2>\n\n\n\n
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\u2192 Impacts: What impact does your company have on the environment and society? <\/li>\n<\/ul>\n\n\n\n\n
\u2192 Risks: What risks do ESG factors pose to your company?
\u2192 Opportunities: What opportunities arise from sustainable strategies and activities? <\/li>\n<\/ul>\n\n\n\n