As a result of the reduction in the size criteria, from 2023 many companies will undoubtedly also be confronted with the new environmental reporting obligations that have not previously published any reporting at all or only to a very limited extent. Good advice is certainly expensive, especially since the required information within the management report officially promotes the CSR disclosures to components of the financial statements. This means that the same time and quality requirements apply to CSRD information as to the financial close.
Will the established processes need to be updated?
Very likely, because it will not work without well-functioning information procurement processes and clearly defined responsibilities. Knowing the company's internal maturity level in terms of the organization's responsiveness in the face of new reporting requirements will also help to get appropriate measures in place.
Can technology help?
Most certainly. However, the coming months will show whether Germany's largest software company, for example, will be able to set standards in the market for user companies with its SAP Cloud for Sustainable Enterprises, once the EU has also ensured greater clarity in terms of the concrete content of reports. In this context, the integration of CSRD non-financials and the figures for the financial statements on a finance platform that is as consistent as possible and available to everyone in the group is also a promising option. Distributed responsibility in corporate groups, barrier-free collection of the required information (e.g. via cloud tools with a web interface such as the SAP Data Collection App) and deeply integrated last mile of reporting applications (such as Amana Smartnotes) will certainly help to master the challenges ahead.