The Corporate Sustainability Reporting Directive (CSRD) that significantly expands the scope and depth of sustainability reporting requirements for companies is here to stay. The Directive requires detailed disclosures on environmental, social and governance topics aligned with the European Sustainability Reporting Standards. The aim of this regulation is to increase transparency, accountability and comparability of corporate sustainability performance and to integrate sustainability into the broader framework of corporate accountability, similar with financial reporting. Understanding and implementing the ESRS is crucial for organizations aiming to comply with the CSRD and to develop an effective sustainability strategy. Our ESG consultant are here to help your organization navigate this process.

CSRD and ESRS: Key dates to monitor

Companies that fall under these categories are obligated to report according to ESRS the following years:

• For financial year 2024: Companies that are already under the scope of NFRD (large public-interest entities such as listed companies, banks and insurance companies that meet certain requirements)
• For financial year 2025: large companies that meet two out of the three following criteria: Turnover exceeding €50 million per year, a balance sheet total or more than €25 million, or more than 250 employees (as an annual average)
• For financial year 2026: Listed small and medium entities
• For financial year 2028: None-EU companies that meet the consolidated revenue of more than €150 million in the EU

Sustainability reporting under the legislation of CSRD is closely connected to financial reporting as it integrated sustainability into the broader framework of corporate accountability. All these companies would have to integrate their sustainability report in their annual management report in order to ensure the proper information of the undertaking’s stakeholder.

ESRS 1 and ESRS 2

ESRS 1 is centered on the general requirements for sustainability reporting. This standard establishes the principles and rules that all companies subject to the CSRD must adhere to when preparing their sustainability reports. ESRS 2, on the other hand, details the specific reporting requirements for various sectors and business activities. This standard offers detailed guidelines for reporting environmental, social, and governance (ESG) data, customized for different sectors. The objective is to assist companies in providing accurate and relevant information. Therefore, the distinction between ESRS 1 and ESRS 2 is as follows:

	ESRS 1	ESRS 2
Guidelines for:	General requirements for sustainability reporting	Specific reporting requirements
Applicable to:	All companies covered by the CSRD	All companies covered by the CSRD

Sustainability matters covered in topical ESRS

These matters encompass the three pillars of ESG: Environmental, Social, and Governance. They detail the sustainability information that companies should collect, analyze, and report. The following indicative table lists the main topics covered in ESRS, categorized by topic and sub-topics:

Category	Topics	Sub-topics
Environment (E)	ESRS E1: Climate change	Reporting of greenhouse gas emissions, risks, and opportunities due to climate change, reduction targets.
	ESRS E2: Pollution	Measures and emissions of pollutants, compliance with environmental standards.
	ESRS E3: Water and marine resources	Water consumption, impact on water sources, water management measures.
	ESRS E4: Biodiversity and ecosystems	Protection of biodiversity, impact on ecosystems, restoration measures.
	ESRS E5: Resources and waste	Resource use, waste management, circular economy initiatives.
Social (S)	ESRS S1: Own workforce	Working conditions, health and safety, diversity, and inclusion.
	ESRS S2: Workers in the value chain	Labor rights, safety, and health of workers in the value chain.
+	ESRS S3: Affected communities	Impact on local communities, engagement, and rights of indigenous peoples.
	ESRS S4: Consumers and end-users	Product safety, privacy, and consumer rights.
Governance (G)	ESRS G1: Governance and organization	Structure and functioning of governance, ethical policies, compliance, and anti-corruption measures.

The ESRS thus offer specific, yet comprehensive guidelines for complying with CSRD rules. To ensure compliance, it is advisable to collaborate with professionals who have expertise in CSRD and ESRS. Crowe Peak’s ESG specialists are such professionals and are eager to assist your organization along our CSRD roadmap.

Crowe’s CSRD and ESRS Roadmap

Double Materiality: We analyse the impacts, risks, and opportunities according to there for a double materiality approach. We then define a sustainability strategy that perfectly aligns with your organization according to the material topics of your company.

Gap Analysis: Our experts conduct a thorough gap analysis of the CSRD, ESRS, and EU Taxonomy. We clearly define the gaps in terms of data, processes, people and systems and are always available to help you bridge them.

Data and IT Systems: In close collaboration, we identify your relevant data points. Together, we determine the IT systems that best meet your specific reporting needs.

Governance and Controls: We assist you in establishing internal controls and reporting aligned with your business and reporting strategy.

Assurance Readiness: We conduct tests on the functioning of your process and assess the quality of ESG-related data and reports, while assuring the development of a thorough audit trail.

Annual Report: With our guidance, you will seamlessly integrate the results of ESG reporting into your annual report.

Crowe and ESRS: How we can assist you

Crowe Peak’s accountants and advisors are esteemed leaders when it comes to CSRD and ESRS. They are poised to offer tailored advice, vision, practical assistance, and the following services within the CSRD domain:

• Baseline assessment for immediate clarity: Crowe Peak’s CSRD/ESRS baseline assessment provides instant clarity regarding your organization’s CSRD status. This foundational assessment encompasses a materiality analysis and a GAP analysis, both crucial in fulfilling your reporting obligations. These analyses meticulously scrutinize your business processes, systems, and documentation to devise a targeted approach towards compliance.
• Implementation and training: At Crowe Peak, we transcend mere advisory services—we partner with you in implementing CSRD measures and embedding sustainable ESG practices within your organization. Our proficient team is committed to not only preparing compliance documents but also empowering your team through crucial CSRD training.
• Audit readiness: While CSRD/ESRS audits and assurance might seem things that remain for the future, their mandatory compliance is closer than anticipated. Hence, prepare for a successful review of your CSRD reporting with Crowe Peak’s audit readiness checks. This proactive approach ensures that your report offers assurance to all relevant stakeholders involved.

Ensuring sustainable compliance

The broad scope of the CSRD as a comprehensive new regulation lies in its focus not solely on individual organizations but also on requiring information about the material impact, risks, and opportunities for sustainability within the supply chain. Crowe Peak offers expertise to assist your company in mapping, structuring, and categorizing the necessary information. This ensures timely reporting. Apart from leveraging insights and advice drawn from in-depth CSRD and ESRS knowledge, you can rely on:

• A customized approach tailored to your organization;
• A pragmatic timeline that aligns with the CSRD effective date for your company;
• Proactive risk management strategies;
• Proficient utilization of innovative technology, monitoring, and dashboarding tools, considering the relevant data points; and
• A sustainable outlook where compliance is perceived not only as an obligation but also as an opportunity.

Crowe Peak: Your ESRS guide

At Crowe Peak, our consultants are dedicated to staying abreast of CSRD regulations, making us a reliable ally in ESRS compliance and CSRD-strategy. We are committed to guiding, assisting, advising, and proactively planning for your organization’s future. Together, we pave the way for a brighter tomorrow. Crowe Peak: Smart decisions. Lasting value.

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