- Data Quality Hurdles: 55% of FY2024 companies anticipate challenges in maintaining data quality and consistency for CSRD compliance.
- Tech-Driven Solutions: Over 80% of companies are adopting or planning to implement new technologies to meet CSRD reporting requirements.
- C-Suite Involvement: CFOs and CEOs are taking the lead on disclosures for FY2024, while FY2025 sees increasing involvement of Chief Sustainability Officers (CSOs).
A PwC Luxembourg report reveals that 55% of FY2024 companies foresee challenges in maintaining data quality and consistency as they prepare for Corporate Sustainability Reporting Directive (CSRD) compliance. The directive mandates transparent ESG reporting, pushing businesses to integrate sustainability into their operations and value creation strategies.
Olivier Carré, Deputy Managing Partner and Technology Leader at PwC Luxembourg, notes:
“The successful implementation of CSRD hinges on leveraging advanced technology solutions that can efficiently manage and integrate vast amounts of sustainability data. Companies must invest in robust data management and reporting systems to overcome these hurdles.”
Nearly half (45%) of surveyed companies express concerns about having adequate resources to meet CSRD requirements, with most expecting to allocate 3-5 full-time employees (FTEs) to these projects. Training is also a priority, as 48% of FY2024 companies have launched full-scale CSRD training programs, while 37% are offering partial training.
Related Article: RWE successfully implements new technologies for more Sustainability in Wind Power
CSRD as a Strategic Imperative
PwC’s findings highlight a shift in perspective:
- 50% of companies view CSRD as a driver of strategic value creation.
- 58% have already incorporated non-financial KPIs into executive variable remuneration, with another 29% planning to follow.
Michael Horvath, Advisory Partner and Sustainability Leader at PwC Luxembourg, emphasizes:
“The CSRD is the cornerstone enabling Europe to deliver on the European Green Deal. It puts sustainability at the core of companies’ business models, prompting them to integrate it into strategic decision-making processes.”
Technology and Leadership Take Center Stage
Over 80% of respondents are adopting or planning technological upgrades for CSRD compliance. These solutions aim to enhance data accuracy, facilitate real-time reporting, and ensure alignment with stringent regulatory standards.
Responsibility for disclosures is evolving. While CFOs (29%) and CEOs (27%) are leading for FY2024, FY2025 sees growing involvement of Chief Sustainability Officers (CSOs) at 22%.
The report underscores that CSRD’s rigorous approach to sustainability will elevate it to the same importance as financial reporting, transforming ESG metrics into actionable insights for long-term growth.
Follow ESG News on LinkedIn