CSRD: Be Data Ready
Turn a regulatory obligation into an opportunity to shape the sustainable future of your business through data.
The CSRD (Corporate Sustainability Reporting Directive) is a European initiative stemming from the Green Deal.
In 2024, this new European directive comes into force. It aims to reshape the way companies approach and communicate their profitability, performance, and sustainability.
Indeed, this Directive introduces a transparency requirement across the three main pillars used to assess Corporate Social Responsibility (CSR), with a set of mandatory and standardised reporting standards for large companies and listed SMEs.
At a glance
- Adopting CSRD improves transparency in sustainability reporting and gives companies a key competitive advantage by highlighting their commitment to sustainability.
- CSRD helps companies improve data quality and align their sustainability strategy with long-term objectives.
- Data-driven reporting strengthens stakeholder trust and improves relationships with investors.
- CSRD compliance supports the objectives of the European Green Deal and helps embed sustainable practices over time.
The European Green Deal aims to regulate the market through transparency
The main objective of the CSRD is to harmonise corporate sustainability reporting and improve the availability and quality of published ESG data, enabling comparability between companies within the same sector.
Standards:
- Set 1: All sectors
- Set 2: Sector-specific standards
- Set 3: Entity-specific information (not yet developed but required when relevant and material)
ESG pillars:
- Environnement (E), Social (S), Gouvernement (G)
Levels of granularity:
- 12 ESRS: 2 cross-cutting, 5 Environmental, 4 Social, 1 Governance
- 82 Disclosure Requirements (DRs)
- 1,141 data points (narrative, semi-narrative, quantitative or hybrid)
Reporting domains:
- Governance, Strategy and Business Model, Impact/Risk/Opportunity Management, Metrics and Indicators
Non-financial reporting is therefore becoming sustainability reporting, integrated into the annual report alongside financial reporting, forming a so-called integrated report. Sustainable performance is thus placed on the same level as financial performance.
CSRD, a game changer
The introduction of CSRD represents a change in the rules of the game: companies that are able to leverage it will turn it into a driver of competitive advantage.
CSRD
CSRD is more than a regulatory requirement; it is a strategic necessity that positions companies at the forefront of sustainability, resilience, and future success.
The 10 long-term benefits of CSRD for companies
The implementation of CSRD introduces major changes aimed at giving greater importance to sustainability objectives within corporate strategy, governance, and risk management. Beyond its demanding nature, the directive strengthens communication with stakeholders and enables a more comprehensive view of the organisation’s challenges.
In this context, data (especially availability and quality) and the reporting process are key success factors.
Talan’s approach to CSRD compliance
Talan brings together Data, ESG, and Analytics experts to deliver secure, auditable, high-quality CSRD reporting.
Key steps in CSRD implementation
CSRD implementation is an enterprise transformation project aimed at ensuring compliance and creating long-term value.
Step 1 – Assessment and design
Initial diagnostic
- Impact analysis of change on the organisation (including Double Materiality assessment to identify material sustainability matters).
- Baseline assessment of operating model, processes, governance, resources, and performance management maturity.
Design
Definition of the new operating model: design of the Target Operating Model (TOM), based on the results of the maturity assessment and the defined objectives, and its translation into a Data Model.
When the context is appropriate and a need is identified, selection of tooling, for which the following macro-steps are defined: requirement specification, drafting of functional and technical specifications, benchmarking of solutions and identification of market vendors, launch of a potential tender process, analysis of technical and financial proposals, and selection of the tool, as well as possible support from a project management/implementation partner (MoE) for technical integration.
Step 2 – Project structuring and management
This phase consists of progress tracking, governance coordination (steering committees and stakeholders), and coordination with related projects.
Step 3 – Operational integration
Integration of the Target Operating Model as well as any tooling when a new system must be implemented.
This phase includes employee training activities, communication plan deployment, and change management actions to ensure a smooth transition.
Step 4 – Run
Operational implementation and continuous improvement: support during the first iterations of deployment and the establishment of a documented continuous improvement approach for new processes.
Step 5 – Change support
Support for business users and partners throughout this organisational transformation through training and internal and external communication campaigns, when relevant.
Our strengths to support you
A unique ability to support you thanks to recognised expertise across the entire data value chain.
Talan adopts a holistic vision of transformation by supporting you in your Data strategy, as well as organisational, human, and technological transformations, from diagnosis through to operational implementation.
Our hybrid profile – Consulting / Tech / Digital – supports this global data-driven transformation vision, in order to create and manage the entire Data value chain.
Experience supporting CAC 40 companies
Partnerships signed with recognised market solution providers leveraging advanced technologies
Assets to support change management
- Data Thinking
- User Experience
Recognised expertise and experience within Finance Departments
We support many finance departments in their performance management challenges through two main pillars:
- Strategy: IT/Finance landscape mapping, roadmap definition, support in solution selection, transition management
- Consulting and expertise: project & programme management, scoping, design, solution implementation, UAT, change management, user training, application maintenance
In-depth knowledge of the Directive enabling us to support you in its operational implementation
We perform your CSRD gap analysis within a short timeframe thanks to our partnership with Wequity
Founded in 2021 by Gabriel Levie and Franck-Victor Laurant, Wequity leverages the potential of Artificial Intelligence to provide solutions for automated questionnaire processing, ESG data gap analysis, and due diligence processes. Today, Wequity has more than 120 clients.
Talan has signed a partnership with Wequity to leverage its CSRD compliance gap reduction solution. Wequity offers a solution based on Artificial Intelligence enabling the automation of gap analysis at data point granularity.
Indeed, the solution is able to automatically extract data and information already available within company documents of various types and formats (internal documentation, external documents, PDF, XLSX, etc.) and assess their compliance against CSRD disclosure requirements.
This solution, combined with our organisational and data diagnostic tools, simplifies your reporting process and ensures compliance with the Directive requirements.
CSRD at a glance
- The CSRD provides a reporting framework but does not impose a results obligation.
- It is therefore an obligation to take material sustainability issues into account and to embed strategy into a continuous improvement dynamic. This includes explaining uncertainties, possible transition scenarios, ongoing progress, etc.
- The objective is to measure what is truly important for the company’s transition. In short, it is not only about ticking boxes.
- The ESRS should be considered as a tool to steer the transition towards a more sustainable economy, rather than a compliance exercise.
- Finally, this is not only a retrospective exercise, but also – and above all – a forward-looking one.
