CSRD data points: Over 50 percent of businesses anticipate a decline in data quality

A new report reveals that over 50 percent of businesses are concerned about a potential decline in CSRD data points quality. The Corporate Sustainability Reporting Directive (CSRD) aims to elevate sustainability reporting to the same standard as financial reporting. This means companies must ensure their disclosures are accurate, reliable, and externally validated.

PwC’s report and its findings

The PwC report aimed to understand current business readiness around CSRD by surveying 215 C-suite executives from financial market participants and operating businesses. This report also offered professionals a high-level CSRD implementation roadmap for the first reporting year. It focused on C-suite responsibilities and key considerations across every step of implementation. 

PwC’s survey also highlighted that over 80 percent of respondents have either adopted new technology to enhance CSRD reporting or are prepared to do so. The impact of CSRD is set to be significant, with 47 percent of FY2024 companies and 56 percent of Y2025 businesses expecting CSRD to have a direct material impact on their financial conditions.

It was also shared that approximately 60 percent of businesses impacted by the Directive in FY2024 are already using non-financial company performance as a KPI for C-suite remuneration. Moreover, an additional 29 percent are set to do so in the near future. Several challenges were also cited, with 45 percent of companies surveyed sharing worries that they do not have the resources to meet reporting requirements.

Over half stated that they foresee a reduction in data points consistency and quality as they process the increased volume of sustainability data. The report also discovered that steps are being put in place to respond to these challenges. More than 80 percent of respondents are planning to implement new technologies and solutions to enhance CSRD reporting in their organisation. Nearly half of FY2024 companies have now rolled out full CSRD training programmes, with a further 37 percent offering partial training for teams. 

Conclusion

The PwC report highlights the significant impact of the CSRD on businesses, from data points quality concerns to the adoption of new technologies and evolving executive remuneration strategies. While many companies are making strides toward compliance, challenges such as resource limitations and increased reporting complexity remain prevalent.

To navigate these complexities effectively, investing in the right training is critical. Our comprehensive CSRD training equips your teams with the knowledge and tools needed to meet reporting requirements confidently, ensuring accuracy, consistency, and compliance. Enrol today to stay ahead of the curve and drive meaningful progress on your sustainability reporting journey.