Setting up your CSRD reporting
The European CSRD (Corporate Sustainability Reporting Directive) requires companies to disclose sustainability information in their annual financial reports.
It supplements the previous Extra-Financial Performance Declaration regulation by structuring and standardizing the content of the sustainability report according to a normative framework designed to improve the quality and comparability of the information published.
The directive is based on 12 sustainability standards known as ESRS (European Sustainability Reporting Standards) covering the 3 ESG themes (Environment, Social, Governance): 2 transversal standards (ESRS 1 & ESRS 2) concern generic and mandatory information, while the qualitative and quantitative information covered by the 10 ESG thematic standards are subject to a double materiality analysis to determine the relevance of their publication.
Plan and Rise can help you set up your CSRD reporting.
Initiating the regulatory compliance process
Framing and scope definition : We work with you to define the scope of the CSRD regulatory compliance project, the activities and entities to be included in the reporting, the regulatory framework, the project timetable and intervention schedule, its various stages with associated mobilizations, workshops, deliverables and feedback meetings.
Where necessary, we raise awareness among stakeholders and the customer's project team, and ensure that a clear mandate for the approach has been given by the board of directors or executive committee.
Analysis of existing practices : During this first phase, we carry out an analysis of existing sustainable development practices and documents (corporate strategy, CSR strategy, CSR report, labels, ethical charters, supplier relationship management policy, etc...).
This preliminary diagnosis enables us to identify the information available with regard to the expectations of ESRS standards.
Defining your ESG challenges: Dual materiality analysis
The aim is to determine the ESG topics relevant to the company's sustainability report (CSRD), by analyzing and assessing the Impacts, Risks and Opportunities (IRO) of each of the themes covered by the ESRS standards :
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We define an exhaustive list of potential ESG topics
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We identify the ESG topics that are relevant to your company, and therefore material, by rating the impacts, risks and opportunities (IROs) associated with each ESRS theme,
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We identify the information required for the company's CSRD report.
The impact of the company's activities on the environment and on people is called materiality of impact.
The totality of environmental risks and opportunities to which the company's activities are exposed is also referred to as financial materiality.
Double materiality analysis is carried out at Group level, including all subsidiaries.
The issues thus identified by the impact materiality analysis and the financial materiality analysis are cross-referenced and prioritized in a matrix, enabling the structure of the sustainability report and the information and data to be communicated and drafted
Gap analysis and compliance plan
Based on the information available, we identify any information that is missing or in a format that differs from the expected CSRD. This information will enable the company to draw up its sustainability report, according to the reporting scope defined by the double materiality analysis and required by ESRS 2.
We draw up a compliance plan with an action plan to close each gap identified, according to the priority level of the issue and the company's resources :
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The objective to be achieved in terms of tools, organization or processes,
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The human and financial resources to be allocated,
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Implementation schedule.
If necessary, we can help you manage your compliance plan.
Drafting the sustainability report
Now that all the necessary elements being available or having been made available by a CSRD regulatory compliance plan, Plan and Rise can help you draw up the sustainability report.
ESRS1 defines the structure of the sustainability report to be integrated into the management report.
It comprises 4 parts :
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ESRS2 General Information: Information on the company's strategy and governance role in the production, management and control of sustainability information, a list of complied disclosure requirements and a table of all data points arising from other EU legislation
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3 separate parts, each dealing with environmental, social or governance topics, with, for each material issue, disclosure requirements relating to the management of impacts, risks and opportunities, metrics and trajectories, additional disclosure requirements of the sector-specific ESRS where applicable, and potential additional entity-specific information. The environmental section also contains information relating to the green taxonomy
The sustainability report must be certified by an independent third-party organization or an authorized auditor.
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