Creating a comprehensive Corporate Sustainability Reporting Directive (CSRD) report may feel daunting, but it presents a valuable opportunity to showcase your company’s commitment to sustainability. A well-crafted CSRD report goes beyond fulfilling regulatory requirements; it also helps build trust with stakeholders. This guide outlines ten essential steps to create an impactful CSRD report that effectively engages and resonates with your audience.
Step 1: Identify the Risks and Opportunities for the time horizons 2030, 2040 and 2050. Not too many in number so to be able to figure out afterwards.
Step 2: Classify Risks and Opportunities in Natural (Extreme Weather Events) and Transitional (Energy and Coal)
Step 3: Optionally, run a questionnaire for executives' views on the impact and likelihood of each risk. Score and analyse their responses. Update the Company's Central Risks - Opportunities Register
Step 4: Further analyse the risks into Risk Events and their Causes
Step 5: Identify and study in a geospatial manner (geolocation) the Assets, one by one, that are likely to be exposed to Climate Change risks. Run models with correlations; if possible correlated with MULTIPLE external databases (Copernicus, IPCC, OECD, etc.). Models should run in three scenarios, 1) Raise 1.5°C, 2) Raise 2°C and 3) Raise 3+°C for each risk or opportunity and for each natural event ( i.e. extreme temperatures, floods, fires, etc.) or transition impact (fuel consumption reduction, carbon footprint reduction).
Step 6: Try to reconcile the findings of the models with the financial statements and the views of your company's managers.
Step 7: Monetise every risk and opportunity, in every Celsius scenario and in every type of climate impact (Event).
Step 8: Draft the policy manual for tackling climate change. Assist your management in developing a long-term strategy for Climate Change.
Step 9: Draft the Disclosures report and conduct a thorough review for clarity and accuracy. Involve key stakeholders for diverse feedback. Their insights can improve the report’s quality significantly.
Step 10: Incorporate Visuals to make your report more engaging and easy to digest. Use charts, infographics, and relevant images to clarify key points.
Plus one Step : Save the findings and supporting material in the Risk Management System for future use in subsequent financial statements.
Final Thoughts
Creating a successful CSRD report is a key opportunity for growth and transparency. By following these ten plus one essential steps, your organization can not only ensure compliance but also effectively communicate your sustainability journey.
Remember, impactful CSRD reporting is rooted in transparency, stakeholder engagement, and crafting a compelling narrative. As you undertake this process, embrace the chance to showcase your commitment to sustainability. With a well-defined strategy and confident execution, your success is assured.
At E-ON we can help you with these 10 steps for your CSRD reporting. Contact us for more information.
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