CSRD compliance: An essential checklist for effective reporting

Complying with the  Corporate Social Responsibility Disclosure (CSRD) is a complex process that requires companies to implement a well-defined strategy and equip themselves with software to simplify data collection and ensure their reliability. Here is the checklist to follow in order to meet all the necessary steps for a company’s compliance with the CSRD.

1. Understand CSRD requirements

  • Familiarize yourself with the Corporate Sustainability Reporting Directive (CSRD) and its reporting obligations.
  • Identify where your company falls within the scope of the CSRD and when you should start preparing for CSRD reporting.

2. Conduct a Double Materiality analysis:

  • Perform a double materiality analysis to identify the relevant environmental, social, and governance (ESG) issues that impact your company and stakeholders, and vice versa.
  • For this, you can rely on the EFRAG guideline for implementing the materiality assessment.

3. Gap analysis and Data Collection:

  • Assess existing data related to ESG factors and measure their accuracy and alignment with CSRD requirements (see the ESRS).
  • Identify gaps in internal data collection and reporting processes.

4. Define you company’s ambition in reporting:

  • Define your company’s sustainability disclosure ambition based on relevant reporting standards.
  • Implement missing policies, targets, and metrics.
  • Establish a reporting structure for the integrated report and approval process.

5. Data Source Identification:

  • Identify appropriate data sources to meet CSRD reporting requirements.

6. Selection of Sustainability Software:

  • To simplify data collection and ensure their reliability, select a tool – software – for reporting that complies with CSRD requirements and is aligned with your company’s needs. (Visit the kShuttle website to discover CSR Insight, our solution designed for CSR reporting)
  • If necessary, seek the help of industry experts to select the software.

7. Assessment of the new software’s impact on Internal IT Systems:

  • Understand the CSRD-related needs for data collection, management, and analysis.
  • Evaluate the maturity of your information systems, the necessary improvements, and specific considerations for successful integration of the CSR reporting software.

8. Software Integration:

  • Define the schedule for implementing the software: resources, timeframes, stakeholders involved.
  • Set up the software to suit your company: definition of entities, selection of indicators, incorporation of historical data, etc.

9. Produce quality CSR Reporting

  • Encourage involvement from all business units.
  • Train employees to use the software effectively.
  • Collect relevant data (define consistency checks, encourage the collection of qualitative information), prepare reports and have them verified.

10. Change Management:

  • Develop a change management strategy to involve the entire organization (and all employees) in the reporting process.
  • Ensure the buy-in of all stakeholders for successful adoption of the software.

11. Collaboration with Stakeholders:

  • Improve data collection and transparency throughout the supply chain.
  • Encourage a project-based approach, identify the right levels of collection, set up different user profiles for the software, with appropriate levels of responsibility and access.

12. Budget Planning:

  • Allocate a budget covering licensing fees, implementation, support, functional assistance, and other relevant expenses related to the adoption of the software.

13. Streamlining the reporting process:

  • Leverage the capabilities of the software to streamline the reporting process and avoid unnecessary complexity.
  • Ensure that the software supports data validation and accuracy checks.

14. Regular Review and Improvement:

  • Regularly review reporting practices and make improvements based on user feedback, identified best practices, and regulatory developments.
  • Update the software to reflect changes in reporting requirements.

15. Finalization of Reports:

  • Prepare and finalize your CSRD sustainability reports using the software: data exports, reporting templates compliant with regulatory requirements, etc.

16. Submission and Compliance:

  • Submit your sustainability reports within the prescribed deadlines and ensure your compliance with the CSRD.

17. Ongoing Monitoring and Disclosure (Voluntary Reporting):

  • Continuously monitor your company’s sustainability performance using the reporting and analysis features of the software.
  • Use the software for voluntary reporting to communicate your CSR commitments.

And remember, compliance with the CSRD is more than an obligation: it’s an opportunity to be at the forefront of sustainability.

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