10 CSRD tips for
ESG managers

10 CSRD tips from our experience

Taking a first look at the requirements of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS)—or their revised version, the ESRS Simplified—can certainly raise a sustainability manager’s pulse. The CSRD is challenging, no question, but that’s hardly a reason to panic! Here are 10 CSRD tips to help you as you tackle Europe’s reporting obligation for the first time.

CSRD tip 1: Take a closer look at the ESRS reporting standard

To understand the scope and requirements that the CSRD places on your sustainability report, it’s important to have at least a rough overview of the framework, the ESRS. Don’t worry, you don’t have to read and understand every single data point to do so. The best place to start is by reviewing how an ESRS report is structured. If you’d like to learn more about the revised ESRS, you’ll find everything you need to know in our article on the ESRS Simplified. And if you do want to dig deeper, you can download all ESRS standards in their original version on EFRAG’s website.

CSRD tip 2: Build the resources and know-how for your CSRD project

The CSRD is a major undertaking, not a one-off project. A single sustainability manager often isn’t enough. When preparing your report, you’ll work in close coordination with HR, IT, Finance, Procurement, Risk Management, and other departments. Foster strong, efficient collaboration and take a realistic look at the to-dos: What resources do we need for implementation? Are additional skills or training necessary? Do we need to hire someone? And if it comes down to a lack of know-how: the VERSO Academy is sure to offer the right training for you. Regular courses and workshops also sharpen awareness of sustainability throughout the organization. Bring other departments on board and keep everyone involved informed about the latest requirements.

CSRD tip 3: Plan the process in detail

Several steps in CSRD reporting require a great deal of time, a lot of coordination with internal stakeholders, or both. That’s why it’s essential to keep your process realistic and forward-looking. Be sure to factor in buffer time, too—and feel free to plan a little generously. Keep the following milestones in mind:

• When do we want to publish the report?
• Are there any time constraints we need to consider (vacations, other projects)?
• When will we write the report?
• Who needs to be brought into the process, and when?
• When will we collect the data?
• When will we carry out the double materiality assessment?
• When do we need to start?

Well-defined, proven workflows lead to faster data collection and reduce the risk of errors. Regularly reviewing and adjusting these processes ensures they hold up even as requirements increase. So those who invest early in clean processes can meet their regulatory obligations far more efficiently and quickly over the long term.

You also need to be aware: data collection in particular is a real time drain. People often underestimate how long it takes to gather the essential information. Don’t forget that for many departments in your company, your request comes on top of their actual day-to-day work. And with business partners and suppliers, you should also allow some time for their responses.

One more tip on this: calculate your deadline “from back to front”! First, determine when the sustainability report should be published—in the case of the CSRD, alongside the management report. From there, work backward through the individual steps—drafting the text, collecting the data, and conducting the double materiality assessment—until you reach the starting point. Add a little buffer for each task, and you’ll know the latest possible date to begin.

CSRD tip 4: The double materiality assessment, the cornerstone of your CSRD report

The foundation of a CSRD report is the double materiality assessment. Materiality assessments have been around for a while, but the principle of double materiality—used to identify the sustainability topics relevant for reporting—only became mandatory with the CSRD. For this, the ESRS prescribe a specific process that must be documented. Here it pays to ask yourself some critical questions: How do we stand in terms of knowledge and capacity for the materiality assessment? Can we manage it in-house, or do we need external help?

The double materiality assessment forms the basis for your data collection, your CSRD sustainability report, and your ESG management. That’s why it deserves special attention. Mistakes can lead to missing or inaccurate data. A substantive assessment, on the other hand, guides you purposefully through the reporting process.

Our experience shows that bringing in external consultants is definitely helpful—if only to draw on their experience when evaluating and selecting topics. Whatever you decide, we’ve outlined the process for the assessment here. You’ll also find a good overview of the methodology in EFRAG’s Implementation Guidance and in the supporting documents from the DNK (German Sustainability Code). Our AI-powered software solution offers valuable support for the double materiality assessment as well, saving you time in the process.

CSRD tip 5: Optimize data collection with digital tools

You’ll need lots and lots of data for your CSRD-compliant sustainability report. That quickly raises the question: How do we collect the data? Set up a process that’s as seamless as possible. And then: Where do we collect the data? Yes, it could be an Excel list — but experience shows those quickly become unwieldy. You’ll find yourself scrolling back and forth between individual data points for ages. It’s a nerve-wracking exercise you’d be wise to avoid. Our recommendation: use a sustainability software instead.

Software-supported reporting is easier, more effective, and more data-driven. And we’re not just saying this from our own experience — EFRAG points it out as well.

Digital tools, especially those with AI support, help you standardize processes and ensure that all material data is captured and processed correctly.

CSRD tip 6: Identify data sources and assign responsibilities

Reporting is teamwork: implementing the CSRD calls on a wide range of areas across the company, not just sustainability managers. Identify your contacts within the teams early on, bring them on board, and clarify responsibilities. We’ve summarized which teams are involved in the CSRD, why, and how in a graphic.

When it comes to data collection in particular, it’s not only important to know which information the CSRD requires, but also who—or which department—can provide it. So build out your processes and communication channels and define clear responsibilities. This creates clarity, avoids delays, and ensures that data collection runs efficiently and smoothly in the future as well.

In the VERSO ESG Hub, for example, you can assign responsibilities for each topic. Every year, when data collection starts up again, each person in charge can enter their data directly into the tool.

CSRD tip 7: Use a gap analysis to identify and close data gaps

Has your company already published a sustainability report? Is it based on a standard such as GRI or the DNK? Then you already have a solid foundation to compare against the CSRD requirements.

Conduct a gap analysis and find out which data you reported in previous years, whether it aligns with the ESRS formulas, and which data is still missing. This tells you which processes already exist and which data collection efforts still need to be established or adjusted.

That said, you can also carry out a gap analysis without a prior report. In that case, you start by reviewing which data you already have available, and then determine where there’s still room for improvement.

CSRD tip 8: Check your data for reliability

High data quality is the key to a CSRD-compliant sustainability report. That’s why it’s important to set up internal control systems that work similarly to those used in financial reporting. These controls ensure that your ESG data is accurate, complete, and reliable. Data quality plays a central role especially with a view to the external assurance required under the CSRD.

To ensure high data quality, you should prepare thoroughly and read the disclosures in the standards carefully. There you’ll find the Application Requirements (AR), which provide detailed instructions. They specify how certain information must be disclosed or measured.

CSRD tip 9: Take a strategic view of sustainability

The CSRD actively asks for a sustainability strategy—you need a policy for each individual material sustainability matter. Beyond that, you must show how sustainability is embedded in your corporate strategy.

So don’t get lost in the reporting tunnel: think of sustainability as part of your corporate strategy from the very beginning, and plan the appropriate resources for it. Not only your CSRD report, but also the future viability of your company, will thank you for it!

CSRD tip 10: Learn from mistakes and from other reports

Many companies have already published a CSRD report. You can learn from them and get a sense of what your own report might look like. That said, every company is so unique that you can’t follow any one of these reports step by step. Each report did different things well.

But here’s a spoiler: the CSRD report will likely sit closer to the financial report than most previous reporting under GRI or the DNK. There’s currently a lot of discussion about which direction sustainability reporting will take.

Now to your own report: your first report doesn’t have to be perfect either—you need to understand and accept that. To start with, it’s about establishing efficient data collection under the CSRD and setting up new processes or improving existing ones. Don’t try to force in descriptions of concepts and measures you haven’t yet introduced. Instead, set yourself a target for when you intend to publish the corresponding data, and communicate that openly in your report.

Dos & don’ts for your CSRD report

Dos:

• Structure your sustainability reporting clearly:
  define clear responsibilities for reporting processes, data delivery, review, communication, and so on—much like in financial reporting.
• Involve internal and external experts:
  run workshops and interviews to gather well-founded input, especially for your material topics.
• Communicate the scope, goal, and purpose of the report both internally and externally:
  a shared understanding of the CSRD reporting obligation promotes consistent data quality and a coherent, readable report.

Don’ts:

• Avoid aggregating your data too heavily:
  if you summarize data, processes, and descriptions too broadly or briefly, relevant information can get lost.
• No purely subjective assessments:
  greenwashing is a thing of the past—the CSRD demands evidence for your claims. Always back up qualitative information with data-based proof.
• Don’t report superfluous data points:
  avoid including more data points than necessary, as this can distract from the information that matters.