CSRD: reporting, sustainability and CSR

The CSRD requires large companies to report on sustainability starting in 2026. This will require an external audit. To support companies in preparing this report as a first step towards a process of continuous sustainability, Factor Delta offers its services. Sustainability consultant Annie Calisal-Alting: "The preparation for the report is similar to setting up an RI&E or HACCP system, which means that the first steps require time and effort to collect and organize all the data. In other words, those who need to be ready by 2026 would be wise to make a start now."

Sustainability has long since ceased to be an option, but an important theme to future-proof business. Slowly people are becoming aware that we cannot continue with the limitless extraction of raw materials from the earth, the disposable society and the enormous amounts of energy consumed. To push companies in the right direction, starting in 2026 the government is making it mandatory for large companies that have €50 million net sales, €25 million balance sheet total or 250 employees to report on sustainability.

Phases

To comply with this directive by 2026, companies go through several steps. This starts with a so-called materiality analysis through which they determine which sustainability topics are most important to them. In doing so, they consider both the company's impact on people and the environment as well as its financial impact on the organization. This is an important step that most companies have already taken. But then comes the implementation: what exactly needs to be reported? What data is already there and what more needs to be done? How is the implementation going and do companies maintain an overview? Calisal-Alting: "We assume that many companies that have to comply with this directive are already well on their way. However, they may get bogged down in the steps of collecting data and implementing sustainability as a whole."

Start with what you already have

No standard is available for this. After all, each company is different and requires an approach that accurately fits the specific circumstances and associated aspects. "First, it is important that the process be undertaken by a multidisciplinary team," Calisal-Alting points out. "After all, sustainability cuts across all aspects of a company. From maintenance and procurement to finance and HR." 

A second important aspect is the tip to start with everything that is already available and connect to it. Whether it's an RI&E, HACCP or otherwise, anything can be used to lay a foundation. "After all, you don't have to go for a 10 on the first report. You can start with the basics and report this first, then expand with continuous improvement," Calisal-Alting knows. "It's important, though, that companies start slowly with data collection. But also with setting goals so that in each subsequent report - which must be made every year - you can show what steps have been taken to reach the goals and how progress is being made. The better you set up and implement a system to systematically collect and evaluate data, the easier it will be to generate each subsequent report."

Utility or necessity?

Of course, the obligation is born of necessity, to force companies to structurally engage in sustainable operations. But those who are smart about it also see the benefit. "Besides the fact that you contribute to a healthy world for now and later, you can also benefit directly as a company by communicating transparently about it. It strengthens the image for customers and employees, and it prepares you for the ever-increasing demands from the chain. You had better have your affairs in order so that you can keep up. You don't have to do everything perfectly at once, but at least start!