While half of companies see the EU’s Corporate Sustainability Reporting Directive (CSRD) as a catalyst for strategic value creation, 55% of companies anticipate challenges in maintaining data quality and consistency, and 45% express concerns about having sufficient resources to meet the directive’s requirements.
Those were among the key findings of a new report from PwC Luxembourg published this week.
The report, “All Hands on Deck: CSRD reporting as the accelerator for sustainable business transformation“, surveys the current state of CSRD readiness among over 200 C-Suite executives from financial market participants and operating companies.
It highlights that CSRD with its value chain approach requires the full C-Suite to be actively involved. Most companies expect to allocate between three and five full-time employees (FTEs) to their CSRD projects.
Among the key findings, over 80% of respondents, regardless of reporting year, have either already adopted new technological solutions for CSRD reporting or are planning to do so. Additionally, 58% of FY2024 firms have already started using non-financial company performance as a material KPI for the variable remuneration of C-Suite members, with an additional 29% planning to do so.
The report highlights the significance of the CSRD, noting that it will elevate sustainability reporting to the same level of rigour as financial reporting, and serve as a game-changer in evaluating and tracking progress on ESG metrics.
Olivier Carré, Deputy Managing Partner, Technology & Transformation Leader, said: “The successful implementation of CSRD hinges on leveraging advanced technology solutions that can efficiently manage and integrate vast amounts of sustainability data.
“While challenges in maintaining data quality and consistency are anticipated, the demands for accurate, real-time ESG reporting present an opportunity for growth. Companies must invest in robust data management and reporting systems to overcome these hurdles.”
