PwC’s Global CSRD Survey 2024 The promise and reality of CSRD reporting
Companies say that reporting under the EU’s Corporate Sustainability Reporting Directive will bring tangible business benefits even as they grapple with tight timelines and the complexity of implementing the regulation.
Preparing to report under the EU’s Corporate Sustainability Reporting Directive (CSRD) is leading companies to give more weight to sustainability in business decisions. Around three-quarters of companies preparing to file under the directive, including those headquartered outside the EU, say they are factoring sustainability into decision-making to a greater extent, or that they plan to do so. Companies also see multiple business benefits flowing from the CSRD, including better environmental performance, improved engagement with stakeholders and risk mitigation.
These findings from PwC’s inaugural Global CSRD Survey will encourage supporters of the new reporting regime who argued that greater transparency in sustainability would drive changes in business conduct. At the same time, however, companies say they are facing multiple obstacles to CSRD implementation, including data availability, staff capacity and the need for new investments in technology.
The CSRD, underpinned by 12 European Sustainability Reporting Standards (ESRS), requires companies to make detailed disclosures about sustainability performance and to consider the implications of sustainability for their business across a wide range of topics, including climate change, business conduct, resource use, pollution and biodiversity. About 50,000 companies globally will be affected. (See ‘About the CSRD,’ below, for more detail.)
As we’ve argued elsewhere, the directive is not only a major new reporting obligation but also an opportunity for leaders to understand in greater depth how sustainability will challenge today’s business models and create opportunities for growth and reinvention. The survey suggests that companies are starting to appreciate this upside potential. In addition to the indirect benefits noted above, about one-third of survey participants expect CSRD implementation to lead directly to revenue growth and cost savings. Significantly, those further along in their implementation journey are more optimistic about the business benefits across all dimensions.
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