Engaging your team in CSRD to drive sustainable change

Insight
July 09, 2024

ESG Leader, PwC Ireland (Republic of)

The Corporate Sustainability Reporting Directive (CSRD) aims to drive behavioural change and value creation in addressing sustainability challenges. Our Global CSRD Survey 2024 reveals that companies preparing for CSRD already prioritise sustainability in business decisions. They recognise multiple benefits, including improved environmental performance, stakeholder engagement and risk mitigation. Businesses must effectively engage their teams in CSRD implementation to maximise these outcomes. This article outlines practical strategies for increasing shared ownership and involvement across your organisation, enabling successful CSRD implementation and fostering long-term sustainability-focused behaviour change.

Companies see multiple business benefits flowing from sustainability reporting under CSRD

Question: To what extent do you think the following are benefits of CSRD implementation for your company?

^{Note: Showing ‘large extent’ and ‘very large extent’ answers only. Source: PwC Global CSRD Survey 2024.}

Maximising sustainable behaviour change

Our survey reveals the growing importance of CSRD implementation:

Executive involvement: over 70% of companies have executive committees or boards engaged in CSRD implementation, rising to nearly 80% for those reporting in FY2025.
Cross-functional effort: on average, eight business functions — including sustainability, finance, operations, procurement, technology and legal — participate in CSRD implementation.

Most companies are approaching CSRD implementation as a broad cross-functional effort reaching far beyond sustainability.

Question: Please indicate the level to which the following functional groups will be involved in responding to the requirements of the CSRD in your company.

^{Note: Excludes respondents who selected ‘not currently involved and no plan to involve,’ and ‘don't know’.

Base: Data rebased with those saying not applicable removed (482 - 540).

Source: PwC Global CSRD Survey 2024.}

These findings underscore a crucial learning: strong governance and cross-functional ownership are essential for successful CSRD implementation. This comprehensive approach ensures compliance and drives company-wide sustainability-focused behaviour change.

Five steps to CSRD success and sustainable transformation

We’ve identified five practical ways companies can engage their people in CSRD implementation to increase shared ownership and drive sustainability-related behaviour change:

Engage senior leadership: form a power trio of Chief Financial Officer (CFO), Chief Information Officer (CIO) and Chief Sustainability Officer (CSO) to lead CSRD implementation. This high-level collaboration embeds sustainability into discussions about operations and business models, ensuring compliance and strategic integration.
Clarify and communicate the ‘why’: invest time in understanding CSRD’s goals from your industry’s perspective. Communicate these objectives and benefits early to foster a shared sense of purpose and create organisational buy-in.
Cultivate a culture of change: create an environment that encourages innovation, agility and calculated risk-taking. This approach will help teams navigate the complexities of CSRD reporting and drive necessary improvements across operations and business models.
Showcase efficiency gains: leverage user-driven design and systems thinking to identify opportunities for improvement in systems, processes and technology. Demonstrate early wins to promote wider adoption and justify the significant investment required for CSRD implementation.
Empower through collaboration: involve critical stakeholders, allowing them to shape the implementation plan and lead their areas. Support this with solid project management and clear roles to ensure successful navigation of challenges and timely CSRD delivery.

Empowering your CSRD journey

Our Global CSRD Survey 2024 reveals that businesses are already reaping the benefits of sustainability reporting and increasingly prioritising sustainability in their decision-making processes. Early and thoughtful engagement of critical stakeholders is crucial to maximising these benefits and ensuring successful CSRD implementation. This approach fosters shared ownership and leads to lasting behavioural change.

At PwC, we can help you develop tailored engagement strategies, navigate complex reporting requirements, identify opportunities for sustainable innovation, and build a culture of sustainability across your organisation. Let’s work together to transform CSRD compliance into a sustainable value driver for your business and stakeholders.