The 2024 corporate reporting season is here – and it’s a whole new ballgame. With the Corporate Sustainability Reporting Directive (CSRD) raising the bar on ESG data, companies are facing tougher standards than ever before.
But don’t sweat it! This is your chance to rise to the occasion and stand out from the crowd. We’ve got the inside scoop on how to nail your reporting and make the process a breeze.
1. Treat your DMA like an internal audit
A Double Materiality Assessment (DMA) is a great opportunity to assess your ESG impacts as well as those in your value chain. Resist the temptation to downplay negative outcomes or focus solely on areas you’ve already scrutinised. Instead, approach it as an opportunity to gather fresh evidence and insights from stakeholders, digging deeper to uncover new perspectives. Your goal should be to provide robust, evidence-backed conclusions that demonstrate thorough and transparent evaluation.
2. Leverage voluntary, conditional, and phase-in provisions
The European Sustainability Reporting Standards (ESRS) offer extensive guidance, which can seem overwhelming, especially if you’re handling multiple material topics. However, the standards also include provisions to make your life easier. Look out for voluntary data points that you can exclude, conditional requirements that only apply under certain circumstances, and phase-in periods for compliance – particularly for companies with fewer than 750 employees. Transitional provisions also exist for reporting value chain data, giving companies breathing room as they adjust to the new standards.
3. Treat your sustainability statement more like financial reporting, not marketing
The CSRD marks a new era in sustainability reporting, emphasising data rigour and transparency. Your sustainability statement should reflect this change. It’s not about high-level, subjective marketing statements anymore – your report should resemble financial reporting, focusing on accuracy, verifiability, and balance. Highlight both your successes and areas for improvement with detailed data to build trust with your stakeholders.
4. Get your teams on the same page and speaking the same language
Any report is a team effort. Information will come from every department – operations, management, legal, finance, HR – so the more you can get everyone engaged and aligned at the start, the more coherent your report will be at the end of the process.
5. Keep it simple
Your sustainability statement doesn’t have to be War and Peace. As long as you meet all the disclosure requirements, you don’t necessarily need hundreds of pages – just enough to convey the key information and get your messages across. At Narrative Labs, we take a ‘no wasted words’ approach, focusing on efficiency, clarity, and readability.
6. Don’t fall at the final hurdle
After months of hard work collecting data and ensuring compliance, the temptation to simply compile everything in a PDF and move on will be strong. But remember, your final report will be scrutinised by investors, regulators, and the public. A well-structured, coherent narrative alongside thoughtful design and layout can make all the difference. Ensure that your report is as engaging and clear as it is comprehensive.
Still feeling lost? Let’s make it easy. Reach out to us today, and we’ll help you ace your corporate reporting!