CSRD: 10 valuable tips for successful data collection

CSRD reporting with its ESRS standards is complex. You have probably already heard this or are perhaps experiencing it yourself. And this complexity is particularly evident when it comes to collecting data for the sustainability report. A number of questions quickly arise: What data do we need? How detailed does it need to be? Who supplies the data? Who ensures that it is correct? And so on. The European Financial Reporting Advisory Group (EFRAG) is the perfect address to answer all questions relating to data collection. The organization has developed the ESRS, which specify the form and content of a CSRD report. And in its guidelines, it has repeatedly emphasized the importance of comprehensive and structured data collection. Collecting all the essential information requires well thought-out planning, clear processes and close cooperation between the various departments in your company. The following 10 tips will help you to establish efficient data collection and optimize the preparation of a CSRD-compliant sustainability report.

1. start early: set up processes and avoid bottlenecks

The first tip is very obvious, yet it is often forgotten: Start as early as possible!

It is important to set up efficient processes before mandatory CSRD reporting begins. Well-defined and proven processes lead to faster data collection and reduce the risk of errors. Regularly reviewing and adapting these processes ensures that they remain in place even as requirements increase. Those who invest in clean processes at an early stage can therefore meet their regulatory obligations much more efficiently and quickly in the long term.

You must also be aware of this: Data collection is a real time waster. People often underestimate how long it takes to retrieve the essential information. You must not forget: For many departments in your company, your request comes on top of their actual tasks. You should also allow some time for responses from business partners and suppliers.

Various sources and departments are involved, especially when it comes to complex data sets such as the carbon footprint. While consumption data is usually available quickly, it takes much longer to carry out a commuter survey or to collect cross-location information. The information on the ESRS S1 standard (company’s own workforce) also usually takes longer, as a lot of quantitative data is requested here.

Another tip here: Calculate the deadline “from the back”! First determine when the sustainability report should be published – in the case of the CSRD, together with the management report. Then go through the individual steps, such as text creation, data collection and analysis of double materiality, right up to the beginning. Allow a little buffer for each task and then you will know when you should start at the latest.

2. double materiality analysis: the foundation for your CSRD report

A central component of CSRD reporting is the dual materiality analysis. This enables you to find out what impact your business activities have on the environment and society and what opportunities and risks exist for your company due to external aspects. These impacts, opportunities and risks (IROs) define which topics are material for your company. The double materiality analysis therefore forms the basis for your data collection, your CSRD sustainability report and your ESG management. You should therefore pay particular attention to this. Errors can lead to missing or inaccurate data. An analysis with substance, on the other hand, will guide you purposefully through the reporting process. Our AI-supported software solution offers valuable support, including time savings in the double materiality analysis.

3. gap analysis: identifying and closing data gaps

Has your company already produced a sustainability report? Is it based on a standard such as GRI or DNK? Then you already have a good template here that you can compare with the CSRD requirements. Carry out a gap analysis and find out what data you have reported in previous years, whether it corresponds to the ESRS formulas and what data is still missing. This will help you determine which processes are already in place and which data collection processes still need to be established or adapted. However, you can also carry out a gap analysis without a previous report. In this case, you first check which data you already have and then determine where there is still room for improvement.

4. identify data sources and define responsibilities

When collecting data, it is not only important what information is required according to CSRD, but also who or wor which department can provide it. You should therefore processes and communication channels up and define responsibilities. In this way, you create clarity, avoid delays and set yourself up for success. hethat data collection will continue continues to run efficiently and smoothly in the future.

5. promote teamwork and a shared awareness

CSRD reporting is a team effort. As you have seen from the previous points, many departments are involved – so teamwork is a must! When preparing reports, you are in close coordination with HR, IT, Finance, Purchasing, Risk Management and other departments. Encourage good and efficient collaboration. In the VERSO ESG Hub, for example, you can define responsibilities for each topic. Every year, when data collection starts again, each person responsible can enter their data directly into the tool. Regular training courses and workshops also raise awareness of sustainability. Involve other departments and inform everyone involved about the latest requirements.

6. set focus and define priorities

Focus on material topics. The double materiality analysis shows you the way here. Please note: The report should concentrate on your efforts in the area of your material topics and fulfill the regulatory requirements. To make the start of reporting a little easier, you should initially refrain from voluntary data points. You should also take advantage of transition periods that have been introduced to ease the burden on companies. You do not have to report on all material topics right from the start. Instead, there are topics for which you are given a settling-in period. Make use of the phase-in regulations that cover many standards. They allow you to skip the disclosures in the first few years or exempt smaller companies from disclosure requirements.

7 Learning from mistakes: The first report doesn’t have to be perfect

The first report does not have to be perfect – you have to understand and accept that. The first step is to establish efficient data collection as part of the CSRD and to set up or improve processes. Do not try to write by hook or by crook about concepts and measures that you have not yet introduced. Instead, set yourself a target for when you want to publish the relevant data – and communicate this openly in your report.

8. ensure granularity of the data

Ensure the right granularity of your data to guarantee the necessary transparency and traceability. Data should be collected in as much detail as possible to enable precise analysis and informed decision-making. Instead of general information on greenhouse gas emissions or energy consumption, it is necessary to collect data down to the level of individual business units, production processes or locations. Overly aggregated information can lead to important details being overlooked. In order to define your goals, you should take sufficient time and, if necessary, hold workshops. The focus should be on what is realistic and sensible for your company in the long term. Choose your goals and measures consciously and avoid adjusting them too frequently. This ensures sustainable and consistent reporting.

9. quality assurance: check data for reliability

High data quality is the key to a CSRD-compliant sustainability report. It is therefore important that you set up internal control systems that work in a similar way to financial reporting. These controls ensure that the ESG data is accurate, complete and reliable. Data quality plays a key role, particularly with regard to the external assurance required under the CSRD. To ensure high data quality, you should prepare well and read the information in the standards carefully. There you will find the Application Requirements (AR) with detailed instructions. They specify how certain information must be disclosed or measured.

10. use technology: Digital tools optimize data collection

Manual data collection is error-prone and time-consuming. Excel tables quickly become confusing – especially with CSRD with over 1000 data points. You spend a lot of time scrolling back and forth between the individual data points. This is something that costs nerves and that you should save yourself. Software-supported reporting is simpler, more effective and more data-based. And we are not just writing this from our own experience, EFRAG also points this out. Digital tools, especially with AI support, help you to standardize processes and ensure that all essential data is recorded and processed correctly.

Effective data collection: how VERSO supports you

VERSO simplifies and accelerates your entire reporting process – from dual materiality analysis to data collection and reporting. You identify the material topics with the help of our AI-supported software solution. In the VERSO ESG Hub, you collect all material data and create a CSRD-compliant report directly in the tool.

* This information is summarized editorial content and should not be construed as legal advice. VERSO accepts no liability.