The Roadmap to the Sustainability Report: Preparing for CSRD Compliance through ESRS Reporting

Corporate sustainability has become a central issue for European companies, which are now faced with new regulations to ensure transparency and accountability in their environmental, social and governance (ESG) practices. The Corporate Sustainability Reporting Directive (CSRD), approved by the European Union, represents a significant breakthrough for sustainability reporting and requires companies to comply with the European Sustainability Reporting Standards (ESRS). This directive aims to increase the quality, comparability and transparency of ESG information, leading to structured and comprehensive reporting.

Preparing for compliance with the CSRD and the adoption of ESRS standards requires a strategic and planned approach. Here is a roadmap to help companies successfully navigate this regulatory change and create a sustainability report that meets the requirements of the CSRD.

Understand the Requirements of the CSRD and ESRS

The first step is to gain a clear understanding of the CSRD and ESRS. The CSRD applies not only to large companies but also to listed small and medium-sized enterprises (SMEs), and replaces the previous Non-Financial Reporting Directive (NFRD). It imposes much more detailed reporting requirements, covering the three main ESG dimensions.

ESRS, developed by the European Financial Reporting Advisory Group (EFRAG), is a set of reporting standards that define what information must be reported and how. These standards cover aspects such as natural resource management, human rights and governance, requiring companies to identify, measure and communicate their impact on society and the environment in a structured way.

Conducting a Materiality Analysis

A key element of CSRD and ESRS compliance is materiality analysis. This process requires companies to assess sustainability issues that are relevant both financially (how ESG issues affect the company) and impact (how the company affects society and the environment).

Conducting a materiality analysis means engaging different internal and external stakeholders to identify and prioritize the most relevant ESG impact areas. This analysis will help the company focus its efforts on significant issues, facilitating the preparation of a targeted and relevant sustainability report.

Implement Data Collection Systems

Once material themes have been identified, companies must develop data collection and management systems to monitor their ESG performance. This is one of the most complex steps, as collecting accurate and reliable data is essential for compliance with ESRS.

Environmental, social and governance data (e.g. CO₂ emissions, gender diversity, anti-corruption policies) must be collected from internal sources and, when necessary, from suppliers. Investing in technological tools for data management, such as ESG monitoring software, can facilitate this process and ensure that the information is ready for annual reporting.

Draw up the Sustainability Report

After collecting the data, it is time to draw up the sustainability report, following the ESRS standards. The financial statements must include clear and structured information on the company’s ESG performance, illustrating both the results achieved and future objectives. ESRS provide detailed guidelines that help organize the report and ensure that all required information is covered.

A key aspect of the sustainability report is transparency: companies must be honest not only about successes but also about areas for improvement. This approach builds trust with stakeholders and demonstrates a commitment to sustainable growth.

External Verification and Publication of the Report

The CSRD introduces an obligation to subject the sustainability report to an external audit, to ensure that the data reported is accurate and compliant with the ESRS. Companies must therefore prepare for an ESG audit, implementing internal controls that allow external auditors to verify the information provided.

Once the audit has been completed, the sustainability report must be published together with the financial report. Transparency is at the heart of the CSRD: the financial statements must be easily accessible to all stakeholders, including investors, customers and local communities.