CSRD & Double Materiality
Complying with the requirements of CSRD can seem daunting. We’re here to work through the key requirements of the standard, providing the data collection and analysis tools to ensure all key aspects of CSRD can be met in an efficient and resource effective manner.
What is the CSRD?
The Corporate Sustainability Reporting Directive (CSRD) is a European Union regulation that requires large companies to provide detailed reports on their environmental, social and governance (ESG) impacts. It expands upon the previous Non-Financial Reporting Directive (NFRD), broadening the scope to include more companies and mandating more comprehensive sustainability disclosures. In order to comply with the requirements of CSRD, data gap analysis is crucial, and our tools help organizations to identify additional data requirements necessary to comply. This includes assessing data availability and quality, and leveraging your existing data management systems and past sustainability reports.
The CSRD aims to enhance transparency, promote sustainable business practices, and make sustainability information more reliable for investors and stakeholders. It came into effect in 2023, with phased implementation over several years:
Key Considerations
Key Challenges with CSRD Compliance
Many companies face significant uncertainty regarding CSRD implementation, reporting and compliance. With our award-winning AI-powered technology and in-house sustainability expertise, we are well equipped to support you through the process of complying with CSRD.
Data Collection
The process of gathering large volumes of ESG data is time consuming and complex to manage.
Many firms also experience difficulty consolidating data from hundreds of suppliers across different locations.
How to address?
- Using tools which allow data to be centralized
- Using software which can analyze large volumes of data
Compliance
Aligning reports with CSRD and the ESRS standards is a complex task, and firms must consider the deadlines they are obliged to meet given their size.
How to address?
- Ensuring analytical rigor
- Leveraging sustainability expertise and reporting frameworks
Training & Engagement
There can be internal bottlenecks when trying to get leadership on board with a firms ESG journey. It is important leadership are up-skilled to ensure ESG principles are embedded from the top down.
How to address?
- Integrating ESG into overarching business strategy
- Engaging in training and education
Understanding Double Materiality
Double materiality is a key concept in the CSRD, highlighting the dual perspective companies must take in their sustainability reporting. It requires organizations to assess not only how sustainability factors impact their financial performance (financial materiality) but also how their operations affect the environment and society (impact materiality).
This broader approach ensures that companies provide a more comprehensive view of their sustainability risks and impacts, allowing stakeholders and investors to make better-informed decisions.
Our approach to CSRD
With a carefully curated selection of digital tools, we are able to support the process of CSRD end-to-end. Whether using our stakeholder sentiment analyzer for research and engagement during the launch phase, using our materiality map when beginning the double materiality assessment, or using our data collection engine to power the data collection phase, our AI-powered tools ensure an easy yet comprehensive process for your CSRD requirements.
Consolidating ESG data into one centralized system streamlines data management, enhances accuracy and improves reporting efficiency. This integrated approach enables better analysis and comparison, facilitating compliance with CSRD.
Speak to a member of our team today to find out more about our unique and reliable approach to supporting CSRD compliance.
Why choose Rimm as your partner for CSRD compliance?
Save time and increase efficiencies
Use Rimm’s AI-powered data collection tools to support with collecting vast amounts of data across hundreds of suppliers, and leverage the automation capabilities of ‘myCSO’ for a more efficient CSRD journey.
Embed CSRD throughout your organization
With unlimited user seats per license and team management capabilities to ensure various stakeholders can be given access, you can bring more individuals into the compliance process, to truly embed CSRD at all levels.
A one-stop shop for CSRD compliance
Have Rimm as your single sustainability platform for complying with the requirements of CSRD; completing your double materiality assessment, collecting and analyzing data and autogenerating analytics and insights.
CSRD Compliant Reports
We can generate a CSRD compliant report in line with the general presentation requirement.
Reports available in XHTML format (mandatory requirement for CSRD) and other formats as required (incl. PDF and Word).
Third Party Assurance
The CSRD requires companies to provide limited assurance for their sustainability information.
We’ve partnered with a variety of assurance and certification firms to ensure an impartial, reliable and knowledgeable review of your ESG data to ensure its accuracy and reliability.
