The promise and reality of CSRD reporting

The introduction of the Corporate Sustainability Reporting Directive (CSRD) marks a significant shift in sustainability reporting for companies operating within the European Union and beyond. As businesses prepare to comply with the new regulation, they face various challenges and opportunities in navigating this complex reporting landscape.

PwC’s inaugural Global CSRD Survey offers valuable insights into how companies are approaching CSRD reporting. The survey reveals that most companies are taking steps to integrate sustainability into their decision-making processes, recognising the importance of aligning their reporting practices with their overall business strategy.

While the CSRD presents various obstacles, such as data availability, staff capacity and the need for technological investments, companies also acknowledge the potential benefits of compliance. While CSRD presents various obstacles, such as data availability, staff capacity and the need for technological investments, companies also acknowledge the potential benefits of compliance. Respondents believe CSRD will benefit their company to a large extent through environmental performance (51%), improved engagement with stakeholders (49%), and risk mitigation (48%). Notably, those further along in their implementation journey express greater optimism about the business benefits across all dimensions.

The survey highlights companies’ current state of CSRD readiness. More than 90% of respondents currently use or plan to use spreadsheets for sustainability reporting, indicating a need for use of advanced technological solutions. As companies progress in their CSRD journey, they are expected to adopt carbon calculation tools, centralised sustainability data storage and AI powered tools.

Given CSRD’s broad scope and complexity, a collaborative effort involving multiple business functions is crucial for successful implementation. The survey reveals that executive committees and boards actively engage in CSRD implementation at over 70% of companies, underscoring the importance of solid governance and top-level support.

Looking ahead, the survey indicates that 57% of respondents will file under CSRD for the first time in the 2025 financial year, based on FY2024 data. This highlights the urgent need for companies to accelerate their CSRD readiness efforts and seize the opportunities presented by this new reporting framework.

As companies navigate the CSRD landscape, moving beyond mere compliance and embracing the transformative potential of sustainability reporting is essential. By thoroughly understanding their scope, investing in robust data processes and systems and executives, businesses can meet CSRD's requirements and unlock the value of sustainability-driven strategies.

The journey towards CSRD compliance may be challenging, but the benefits are substantial. Companies that proactively adapt to CSRD will be well-positioned to thrive in a future where sustainability is not just a reporting obligation but a key driver of business success.

About the survey

In April and May 2024, PwC surveyed 547 executives and senior professionals across more than 30 countries and territories. About one-third of respondents hold C-suite roles, and the remainder are senior professionals across business functions including sustainability, finance and risk. Sixty percent of companies represented are headquartered within the European Union. More than half have annual revenues of over US$1 billion. Sectors represented included manufacturing (25%); financial services (21%); technology, media and telecommunications (18%); consumer and retail (14%); energy, utilities and resources (13%); and healthcare (7%). Across all respondents, 57% say they will file under the CSRD for the first time in the 2025 financial year, based on FY2024 data. Unless specified, charts include all respondents (547).