8 Steps to CSRD Success

Here at Move to Impact, we understand just how intimidating CSRD compliance may seem. That is why we have spent the last years carefully crafting and perfecting our 8-phase process.

Hello CSRD!

Starting in 2024, more than 50,000 EU organizations will have to follow the Corporate Sustainability Reporting Directive (CSRD). This directive lays out the rules for reporting on how they’re doing environmentally, socially, and in terms of governance – things like diversity metrics, their impact on the environment (like CO2 emissions and water use), and how they’re dealing with human rights issues.

For most of these organizations, talking about CSRD is like entering uncharted territory. Some companies may not be used to reporting on social and environmental subjects. When it comes to financial matters, they’ve got clear rules to follow, but now there are new rules called the European Sustainability Reporting Standards (ESRS). ESRS was established to standardize how companies report on their environmental, social, and governance impact and are an integral part of CSRD. To meet CSRD requirements, they have to stick to these ESRS, which means they’re moving from doing this reporting voluntarily to it being mandatory. It’s a big change for the companies covered by CSRD.

Read more about CSRD here:

EU Commission

Our 8 Phase Process

Our process begins with robust project preparation to establish a solid foundation. We proceed by identifying essential Key Performance Indicators (KPIs) for monitoring sustainability objectives and conducting materiality analysis to pinpoint organizational priorities, tailoring KPIs accordingly. Subsequently, we facilitate efficient data collection, centralizing it into an accessible impact dashboard, and assist in generating your comprehensive CSRD-compliant annual non-financial report, ensuring a smooth and streamlined journey towards compliance.

#1 Project Preparation: The first phase is all about getting things started. After some initial preparation, you should start project onboarding, define your project team, and introduce them to KPIs. Setting a strong foundation is crucial for your success!

#2 Current Company KPIs: In the second phase of the CSRD project, we’re pinpointing the KPIs (Key Performance Indicators) that tell us how we’re doing with our goals. Workshops with departments like Finance, HR, Sustainability, and Operations will help identify these metrics. This data is vital to communicate our broader sustainability vision covering People, Planet, and Profit. It’s also crucial to involve the IT department to ensure that different data sources can eventually integrate smoothly, possibly using existing reporting databases or data warehouses.

#3 Double Materiality Analysis: In this phase, we’ve got a lot on our plate, as we are looking at the impacts of the company from both an inside-out and an outside-in perspective. First, we’ll map out our company’s value chain and do a deep dive into the competition to see where we stand. Next, we’ll be sending out surveys to stakeholders both inside and outside the company. Once we’ve gathered all that info, we’ll sift through it to figure out what really matters to us – what we call the “material topics.” We’ll also be having some sit-downs with key players in our business world to dig even deeper into the risks and opportunities tied to these material topics. Lastly, we’re going to set up some KPIs to keep tabs on how we’re doing with managing those risks and seizing those opportunities.

#4 ESRS Indicators: Before CSRD, companies did their own thing when it came to reporting on sustainability, but now we need to comply with new standards called ESRS (European Sustainability Reporting Standards). In this fourth phase, it’s all about getting everyone up to speed on these new standards. Each department will be informed of what they need to do differently, and form action teams to figure out how we’re going to collect all this data for future reports.

#5 Connecting KPIs and Data Definition: In the 5th phase, you will collect all the needed indicators from the materiality analysis & the ESRS and map these with the current present KPIs. All the departments now have an overview of the required data, so they can start to identify the gaps between the current & future state. Since they now see what data is missing, they can start thinking about a plan how to collect this data with the required measurement methods.

#6 Data Collection and Measurement: Now you will start with the real deal: collecting data on the indicators that you’ve identified in the previous steps. All working groups will be informed on where to put what, and in which format. At the end of this phase, the different departments get started with collecting data.

#7 Impact Dashboard: It’s time to bring all the indicators together in an impact dashboard. The impact dashboard will be developed based on the data sources in the previous step. With the help of an impact dashboard, you limit the time spent on setting up the monthly report. At the end of the year, you automatically have the data available to set up the annual report. The impact dashboard’s objective is to give the company steering information on the indicators. With the help of these insights, you have a grip on the future.

#8 CSRD and Automated Reporting: Finally, the last phase of the CSRD preparation. All preparation had one goal: creating the annual non-financial report. The CSRD report should cover all the required disclosures from the European Sustainability Reporting Standards and results from the double materiality analysis.

We are Here for You

We know that CSRD can be overwhelming for many who are new to the ESG reporting world. At Move to Impact, we want to make CSRD compliance accessible for all companies. That is exactly why we have spent the last few years creating and perfecting our 8-phase approach. We have received excellent feedback from our CSRD clients and continue to monitor our products and services to ensure that they reflect any new standardization from the EU Commission. If you feel lost when it comes to CSRD, let us help you achieve compliance using our 8 phases as a foundation.

Learn More about our CSRD Tools:

MTI Tools

Throughout this process, our team of experts will be by your side, offering guidance and support. Our digital tools and platform are designed to make compliance more accessible and efficient. We understand the challenges, but we’re here to help you turn them into opportunities for a more sustainable future. With our services and expertise, CSRD compliance becomes a manageable and beneficial journey. So, rest assured, we’re here to assist you every step of the way.