According to the CSRD, your company must carry out a double-materiality analysis. Although the scope of this project may seem intimidating, it turns out to be your best ally on several plans. By analyzing your company’s impact on the environment and the impact of the environment on your company, you will be able to clearly understand which ESRS data points your company should refer to in its sustainability report. And if your company has already carried out its NFRD before, you already have indicators that can guide you in your declaration. Other prerequisites such as gap analysis also bring good ideas to explore further in your declaration. The ESMA has also issued 3 recommendations, drawing the attention of companies to these structuring analyses. All of these elements allow you to get a more precise picture of the structure of your document and move on more easily to organizing your production.
Keep in mind that this is not your first regulatory novelty. Remember when your annual reports had to comply with the ESEF format in 2021. You will find similarities that will allow you to approach this transition more easily. In addition to being written and formatted, the two documents are marked up (or tagged), then validated by your auditor so that they can be filed in due form with the competent authority. If you have already dealt with project management in the context of a financial report and/or an annual report, the organization of the sustainability report project is similar, apart from the stages mentioned above linked to the demarcation of the perimeter of your business. On the other hand, the exercise is more about written explanations than its financial counterpart. You will therefore need to plan a larger team of writters with ESG skills.
Each company is unique in its nature, its products and/or its services. But most companies subject to the CSRD have almost all the same needs. Thanks to your double-materiality and gap analysis, you will be able to establish specifications for tools consistent with your company’s model. However, we note that three tools are essential for creating a compliant report:
With Pomdoc Pro (and/or Pomdoc DM), you combine two tools in one, by carrying out your ESRS tagging directly in your report created in the collaborative platform.
Publishing your sustainability report for the first time is a challenge. As with the first exercise of the DEU (Universal Registration Document) conforming to the ESEF format, the batch of new features may seem destabilizing, but is also structuring. We hope to have been able to enlighten you with these few tips and the recommendations of the different authorities for your first sustainability report. For any further information, do not hesitate to contact us 🙂
