The Corporate Sustainability Reporting Directive (CSRD) is increasingly on the agenda and attracting the attention of numerous organizations. How can companies meet the stringent requirements while increasing their impact? In what ways do initiatives linked to a circular economy contribute to the overall picture? Empact acts as an expert guide to accompany companies on their sustainability journey. We have developed customized roadmaps for our clients so they can not only meet CSRD requirements, but also use CSRD as a powerful tool to increase their positive impact.
Our philosophy is that an organization should be able to execute the plan itself, while Empact provides support when needed. Within Empact’s ecosystem are not only consultants, but also scientists and, of course, assurance providers who provide input and review during the implementation of the roadmap.
Step 1. Analysis and baseline measurement
In the first phase, we lay a solid foundation through a thorough baseline measurement and analysis. We dive deep into the current situation and map all aspects, including existing policies, implementation, processes, activities and governance. We also conduct a double materiality analysis, in collaboration with stakeholders, to get a complete picture. We compare the results of these analyses with the requirements resulting from the CSRD. Based on this comparison, together we identify the GAP: the difference between the current situation and the set requirements and ambitions. In close consultation, we then determine the necessary steps to prepare for the second phase.
2 ESG/ CSRD strategy
Based on the findings from phase 1, we establish the CSR vision and ambitions. This vision must be embraced by the management and Supervisory Board or Board of Directors. Based on this vision, we then define the main objectives. In addition, we define the responsibilities within the organization. Together this forms the ESG strategy. Here we abandon CSRD as a guideline and define the vision and goals for the E,S and G. In this way we strive for tangible and actual changes that go beyond mere compliance with regulations. We want to have a positive impact on the environment, society and the way we run our organizations. Together, we are committed to sustainable growth and change that makes a lasting difference.
3. Output or implementation
Once the strategy, key objectives, governance and plan of action have been established, it is time to make concrete plans for each sub-area. We establish working groups and translate the strategic goals into operational actions. In this phase, it is essential to have an eye for quick wins and the realization of iconic projects. In doing so, we optimize the experience of success and increase the visibility of our efforts. This is especially important to maximize support and energy within the organization. Working with the CSRD is an ongoing process, and therefore phases 3, 4 and 5 will partially overlap.
4. Report
By 2026, most organizations will be reporting on their ESG performance based on the CSRD. While implementation may already be underway, this initial phase provides a valuable opportunity to look ahead to 2026 while encouraging the organization to continuously work on their ESG performance. In addition, there is the opportunity to request “pre-assurance” from the assurance provider. This gives an organization assurance that the assurance provider is involved in the choices being made. The assurance provider can offer additional insights, particularly with respect to process and evidence. In this way, an organization establishes a solid foundation for future reporting requirements. It also creates an internal incentive to continuously work toward improvement and success in ESG performance
5. Secure
The last crucial phase of the CSRD implementation process focuses on ensuring the CSRD is in place. It is essential to distinguish between the implementation of the CSRD and its full integration within the organization. It is important that internal stakeholders are aware that the ultimate responsibility for CSRD and ESG performance lies with the CEO or CFO. Although the European Sustainability Reporting Standards (ESRS) are still subject to change, we understand that some organizations want to wait until the ESRS are finalized. However, it is important to realize that this decision carries risks, especially if the quality of current sustainability reporting is not optimal. The first and second phases of the implementation process may have a longer lead time. Activating the internal organization and the involvement of finance and management will increase significantly.
It is important to understand that the CSRD is a means to an end, not the other way around. A successful implementation of the CSRD not only results in compliance and cost, but adds value to business operations. This requires an incremental strategic approach, realizing real impact…. If you would like to learn more about CSRD, ESG performance or the CSRD roadmap, please contact us at info@empact.nu
* A more extensive version of this article is part of the Practice Note we developed for SDU. In this we also provide tips & tricks and templates are available. For more information, please visit: https://www.sdu.nl/jes/kennisbank