Integrating the requirements of the CSRD and the ESRS

There is general acknowledgement by those familiar with financial reporting requirements that this new era of sustainability reporting is going to be onerous. We canvassed several BDO partners around the world for their advice on how to transition to the requirements of the CSRD and ESRS. 

  1. Understand if the CSRD applies to your business. If it does, you should perform a gap analysis to determine what metrics and disclosures you can currently report against, compared to what you need to report on. Understanding the CSRD’s impact on your company is important because depending on your company size and whether it is public or private impacts the reporting implementation phase. 
  2. Assess the differences between your current reporting framework and what you need to report on and then decide where to prioritise additional reporting efforts. The ESRS provides a good sustainability reporting framework for companies that don’t currently have one. Conduct a detailed materiality assessment and measure risks and opportunities. 
  3. Develop a roadmap to start collecting the required data: both what you currently have as well as drafting forward looking statements for indicators you currently cannot report against. Forward-looking statements are acceptable where there is a reasonable chance of your business being able to report against them within the next reporting cycle. 
  4. Train teams/employees who oversee ESG reporting and compliance as they need to understand the implications and objectives of these regulations. Training should extend beyond compliance teams to include all people involved in data collection and reporting because if the data collection is flawed, the report will need revision, making the process longer and more costly.
  5. Don’t underestimate the complexity of ESG data and the collection thereof. Your company will need a robust IT solution to collect and manage the data for accurate and transparent reporting. 
  6. Involve your auditor early in the process – they know your company, the upcoming requirements of CSRD and ESRS and what will be required of you in an upcoming limited assurance. 
  7. Education and communication is important. Repeat key messages and information because the more often people hear the story, the quicker they will understand and the faster you will get internal traction.


“Our most important advice would be to start early, as in many cases this will be the first sustainability related report, and it needs time and adjustments.”

Ákos Veisz, BDO in Hungary



Top Tips:

1 Get started. A lot of mid-size companies complain that they must report, and that it’s too much and too difficult. But this is how it is and complaining is wasting precious time

2 Get the right people at the table. This is a cross-functional topic so you need to tackle it cross-functionally

3 Identify two or three business benefits to make it easier to convince your stakeholders to join you on the journey. You still may not like it, but it will make more sense


Viola Möller, Partner, Sustainability Services, BDO in Germany