CSRD Study by PwC

Background

In today’s business world, the ability to record and report precise and comprehensive sustainability data is not only a sign of good corporate governance but a regulatory necessity. The introduction of the EU’s Corporate Sustainability Reporting Directive (CSRD) has reinforced these requirements.
A recent study by PwC shows that, despite recognising the benefits of CSRD reporting, companies face considerable challenges in data management.

The CSRD is seen as a catalyst for better environmental performance, improved collaboration with stakeholders and risk reduction. About three quarters of companies preparing for CSRD reporting are increasingly taking sustainability into account in their business decisions or are planning to do so.

Nevertheless, companies face challenges such as data availability, staff capacity and the need for new investment in technology. The directive requires detailed disclosures on a wide range of sustainability topics and affects around 50,000 companies worldwide.

Automated software solutions as the key to successful sustainability data management

Requirements of the CSRD

The CSRD, which demands detailed disclosures on a wide range of sustainability topics, presents companies with the task of collecting, verifying and consolidating large amounts of data from various sources. This is made even more complex by the requirements of “double materiality”, as companies must consider both the financial impact of sustainability topics on their business and the impact of their business on the environment and society.

In addition, the requirement for investor-grade reporting demands processes that are repeatable, well documented and verifiable by independent auditors or other third parties.

Challenges in implementing the CSRD

The PwC study shows that many companies have difficulty obtaining and processing the required data. Companies see the availability and quality of data as the biggest hurdle.
For calculating the emissions caused by a product along the entire value chain, for example, much of the required information is often not available in existing ERP systems and has to be compiled manually from various documents and spreadsheets. This process is not only inefficient but also prone to errors.

Another challenge is the complexity of the value chain. Telusio’s PCF Study 2024 also underlines the challenges here – companies estimate that only 15% of suppliers can provide specific information on the environmental impact of their products.

This puts companies in a difficult situation – a lack of data, slow and often non-centralised data storage make reporting harder.  

Software as a solution

This is where automated software solutions come in. By using modern technologies, companies can meet the requirements of the CSRD while improving the efficiency and accuracy of their reporting.
Automated systems enable central storage, processing and analysis of emission data along the value chain. This significantly increases data quality and simplifies emission calculation, analysis and reporting.

According to PwC, without such solutions companies will continue to rely largely on manual processes. 37 percent of respondents already use software solutions to calculate CO2 emissions, and a further 20 percent plan to introduce them within the next two years.

According to the PwC study, companies that have already invested in such technologies report greater confidence and better progress in implementing the CSRD. These companies can not only meet the regulatory requirements but also use the data gained to make well-founded business decisions and gain competitive advantages.

Telusio’s view

With regard to the study, PwC once again underlines the urgency of recognising the importance of automated software solutions and making the corresponding investments. Only in this way can companies master the challenges of sustainability data management and fully exploit the opportunities of the CSRD.