Webcast: Corporate Sustainability Reporting Directive
Impact and requirements explained
The EU Green Deal aims to make Europe the world’s first ‘climate-neutral continent’ in 2050, in line with the Paris Agreement and requires all sectors to take action. The Green Deal forms the basis for the EU Action Plan on financing sustainable growth.
The three main objectives of the EU Action Plan are to reorient capital flows towards sustainable investments, integrate sustainability in risk management, and foster transparency and long-termism in financial and economic activity. One of the key regulations that the EU has published in order to achieve these objectives is the Corporate Sustainability Reporting Directive (CSRD). The CSRD significantly extends sustainability reporting and assurance requirements. CSRD reporting is mandatory for large public interest entities over FY 2024 and for all large entities over FY 2025.
The CSRD requires a major effort from many companies and timely preparation. In the webcast videos below, PwC experts explain the different aspects of the CSRD, its challenges, and recommendations.
0:04:14
Introduction to the CSRD
Introduction to the CSRD
Alexander Spek, ESG lead at PwC, introduces the CSRD and shares context and background of the directive.
Current status of the CSRD
Kees-Jan de Vries, Partner ESG Services at PwC, discusses the current status of the CSRD and dives into the scope and timeline of implementation, the related European Sustainability Reporting Standards (ESRSs), updates on the latest ESRSs, and five relevant CSRD concepts:
- Characteristics of information quality
- Double materiality
- Reporting boundaries and value chain
- Time horizons
- Sustainability Due Diligence
0:30:10
Current status of the CSRD
0:11:13
Bringing ESG data & tech to life
Bringing ESG data & tech to life
Currently, many companies have not yet embedded the CSRD information requirements into their systems and processes. Collecting and sourcing the large amount of required data points (including data across the supply chain) and assuring the quality of this data is a major challenge for reporting entities. Lex Huis in het Veld, Director ESG Services at PwC, shares his insights on the challenges regarding ESG data and technology. Three different types of challenges are discussed:
- ESG data collection & sourcing
- Methodologies processing & analyzing
- IT tools, infrastructure and governance
Finally, Lex provides recommendations on how to leverage your ESG data management to let CSRD reporting help to drive your strategy.
Audit and Assurance
CSRD reporting requires assurance from an independent assurance provider, starting with limited assurance and moving to reasonable assurance. Nicoline Dikmans, Senior Manager ESG assurance at PwC, elaborates on what CSRD assurance will require from reporting companies. Additionally, Nicoline shares her experience from providing limited assurance to companies that already report sustainability information, and discusses three challenges companies face:
- Criteria are often not aligned throughout the organization
- The wide variety of sources, and spread throughout the organization
- Immature processes and level of internal controls
0:11:13
Audit and Assurance
0:03:53
Closing
Closing
Companies have an important role to play in moving towards a more sustainable world, and the CSRD makes a major contribution to this: “From now on, having a clean human rights record will be just as important as having a clean balance sheet” (Pascal Durand, EU Parliament’s lead negotiator, June 2022). Alexander wraps up the webcast with a practical implementation roadmap which takes your company from your current starting point, to regulatory compliance.
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