PwC survey: companies are not ready for CSRD reporting but say they will be

Nearly two thirds (63%) of companies say they are confident they are ready to be accountable under the new European Union regulation. Corporate Sustainability Reporting Directivebut their optimism is thwarted by several obstacles to implementation.

PricewaterhouseCoopers’ CSRD Global Survey 2024, released Thursday, surveyed more than 500 senior executives and professionals. It found that despite high levels of confidence in anticipated reporting preparedness, respondents cited data availability and quality (59%), value chain complexity (57%) and capacity of the staff (50%) as significant obstacles.

“As CSRD essentially requires sustainability reporting to be on par with financial reporting, leaders recognize that sustainability information must be available, accurate and ready to be audited: not just on an ad hoc basis, but annually. Nadja Picard, head of global reporting at PwC Germany, said in a statement. “The global impact of the CSRD demonstrates the importance of establishing a global benchmark for reporting standards to reduce complexity and improve comparability. »

The CSRD, established in January 2023, requires companies to report on their environmental, social and governance performance in the 2024 financial year by providing data on items such as emissions, energy consumption, diversity and labor rights. The legislation imposes a new level of liability on around 50,000 EU-based companies and 30% of US companies operating in Europe.

The survey also found that despite higher levels of confidence for companies due to publish their reports in six months, less than half have carried out key activities such as confirming reporting options (39%), assessment of dual materiality (38%) and validation of information availability. data (20%).

But the perceived long-term impact of the CSRD is largely positive: 76% think that the CSRD will lead company managers to take sustainability into greater account in decision-making, and will benefit their company through environmental performance ( 51%), will improve stakeholder engagement (49%) and risk mitigation (48%).

“Our survey shows that large companies are increasingly integrating sustainability into their decision-making,” Will Jackson-Moore, global head of sustainability at PwC UK, said in a statement. “Through the implementation of the CSRD, they expect strong environmental benefits, better risk mitigation and improved engagement with stakeholders. We also find that companies that are further along in their CSRD journey expect greater overall benefits from its implementation. In particular, those who are closer to the reporting deadline and see much greater financial benefits, such as access to capital, revenue growth and cost savings, than those who must report later.