The CSRD marks a new era for organisations

The Corporate Sustainability Reporting Device (CSRD) requires environmental, social, and governance (ESG) reporting by organisations, along with an assurance report from their accountant. All major listed companies must comply with the European Sustainability Reporting Standards (ESRS) by 2024, and the new reporting requirements will also apply to private companies by 2025. It requires reliable data, a streamlined process, expertise in a wide range of sustainability aspects and the right technology. Implementing the CSRD is more than a step towards greater transparency. It is a journey towards integrating sustainability into business strategy and everything a company does.

A key aspect of the CSRD is the concept of double materiality: organisations must evaluate and report on the ESG impact of their activities, as well as the financial impact of these factors on the organisation itself. As a result, sustainability is becoming more strategically relevant and is being integrated into business processes and structures at an accelerated pace.

Over the past year, PwC has have drawn on its wide range of in-house expertise to support organisations in their transformation and their implementation of the CSRD. Although not yet obliged to do so, we have also chosen to practise what we preach by already complying with the reporting requirements of the ESRS in the latest annual report.

Doing so has tested PwC’s ability to transform in the same way, as it does with our clients. Implementing the CSRD affects the entire organisation: from strategy to reporting, from the finance function to procurement, from client services to our own energy consumption and travel policies & behaviour.

We ask our employees to continue developing the knowledge and skills they need to ensure PwC continues to lead the way with its services in a changing world. Our work is becoming even more relevant with sustainability reporting and the related provision of assurance, and we take the investment from our side in this very seriously.

Implementing the CSRD also means reconsidering the requirements we set for our client and engagement acceptance, how often and by what means we travel, and the way we buy goods and services. 

Helping our clients build trust in their sustainability information also requires them to comply with all ESRS requirements in a timely manner. Over the past year, we have found that many PwC clients are concerned about meeting the new sustainability reporting requirements and consider it a challenge. 
 
Although the legislation has yet to be implemented in the Netherlands, most clients are already taking action and intrinsically motivated to become more sustainable. As they delve into the details of the ESRS, however, they find it quite complex and time-consuming or fail to accurately apply the reporting standards. 
 
In conversations with clients we share our concerns about timely CSRD implementation by those who will report for the first time according to ESRS in 2025. We remind them of the importance of having a CSRD implementation plan and double materiality analysis (DMA) available well before 31 December 2024. 
 
Having experienced first-hand the steps required, PwC leverages on our experiences with implementing the CSRD to help clients build trust in their sustainability information.