The CSRD marks a significant milestone in the integration of sustainability reporting and financial reporting. It obliges companies operating within the EU to disclose details of material ESG-related impacts, risks and opportunities in their management reports.
These disclosures must cover both the company’s own activities and along the entire value chain. Developed in accordance with the European Sustainability Reporting Standards (ESRS), these disclosures are subject to mandatory external assurance.
How our sustainability team can help you
Forvis Mazars will provide your organisation with the technical and practical expertise required to navigate the complex reporting landscape presented by the CSRD. We will help you to identify the sustainability-related impacts, risks and opportunities throughout your value chain to maximise the benefits of the reporting requirements and ensure they work for your business. By utilising our technical expertise and extensive experience in ESG reporting, you will benefit from:
Heightened awareness of regulatory changes, with advice on the latest developments tailored to your organisation.
A multi-disciplinary team who can combine their skillsets across sustainability, consulting and assurance to provide you with an integrated and global view of the reporting process.
Inclusion of sector-specific experts to ensure the identification of material topics and the related disclosures are tailored to your operations and value chain.
Technical and practical capability to master the operational complexity of implementing new sustainability reporting requirements.
Our phased approach to helping you report in line with the CSRD typically includes seven stages of implementation, as outlined in the figure below:
Forvis Mazars can provide you with streamlined and practical support to prepare your organisation for the CSRD. Our experienced team can assist you with an end-to-end CSRD service, or tailored services where your needs are specific including the following:
Conduct an assurance-ready Double Materiality Assessment in line with the requirements of ESRS 1 which will identify and measure your key impacts, risks and opportunities, and form the basis of your CSRD reporting.
Conduct a gap analysis against the ESRS reporting requirements, based on what is deemed to be material.
Benchmark your current position against your peers and best practice, and provide you with a clear strategic roadmap for your CSRD reporting.
Develop policies, actions, targets and metrics to address material topics.
Design and deploy data collection processes and controls.
Develop CSRD compliant qualitative disclosures.
Prepare digitally tagged (XBRL) reports for publication.
Train your teams on CSRD requirements and support change management and communications.
Provide expert advisory on the interpretation of CSRD and ESRS requirements.
Perform an assurance readiness assessment.
Provide assurance opinions on your CSRD reporting (where we have not provided advisory services).
Get in touch
If you would like further information or support with navigating the CSRD requirements, please don’t hesitate to get in touch with a member of our team. We can offer guidance and ensure our organising to fully prepared for compliance with the CSRD while taking advantage of the strategic benefits of the directive requirements.
Common Corporate Sustainability Directive (CSRD) FAQs
What is the importance of CSRD?
Reporting in line with CSRD is more than a mere compliance exercise. Beyond meeting regulatory demands, preparing for the CSRD provides a valuable opportunity for senior management to gain deeper insights into the sustainability challenges and opportunities the organisation faces. It also allows for a better understanding of how sustainability-related impacts may connect to financial risks and opportunities, enabling their integration into the wider strategy.
Organisations face unprecedented uncertainty about future operating conditions, encompassing environmental, social, and economic factors. Companies that fail to demonstrate preparedness may encounter restricted market access and higher stakeholder scrutiny. Those that embrace comprehensive ESG strategies and reporting are likely to benefit from reduced operating costs, enhanced operational resilience and increased stakeholder trust. By addressing a wide range of sustainability issues, from environmental impact to social responsibility and governance practices, businesses can secure a competitive edge and drive long-term growth.
Which companies must comply with the CSRD?
The CSRD imposes reporting obligations on specific companies operating within the EU. To determine compliance, the directive outlines clear criteria:
The CSRD applied to companies classified as public interest companies (PIEs).
EU companies, irrespective of incorporation within the EU or having securities listed on EU-regulated markets, must be companies with CSRD. Non-EU companies may need to comply if they have securities listed on EU-regulated markets or meet the criteria for PIEs.
Small and medium-sized enterprises (SMEs) are generally exempt; however, they may still need to disclose information on a limited set of sustainability matters. The exact scope of these will be further defined through legislative measures and delegated acts.
The Corporate Sustainability Reporting Directive (CSRD) is now in force across the EU, with the first sustainability statements set to be published in 2025. This directive requires companies operating within the EU to publicly disclose information on their environmental, social, and governance (ESG) performance. Businesses must prepare to meet these more rigorous transparency obligations and demonstrate...
