Discover the perspective of Nada El Alami, our Sustainable Development Product Manager, as she answers key questions about the challenges and solutions surrounding the CSRD and sustainability reporting.
Nada, could you briefly remind us what the CSRD directive is?
The CSRD (Corporate Sustainability Reporting Directive) is a European directive that imposes strict sustainability reporting standards on companies. It requires a double materiality analysis, meaning companies must assess both their impact on the environment and society, as well as how these issues influence their business.
With progressive deadlines through 2026, the CSRD aims to harmonize reporting practices across the European Union. It also introduces requirements for sustainability assurance and adjusts the application of specific standards.
Why is it crucial to start working on CSRD compliance now, even though the first disclosures are not due until 2026?
Currently, many companies are not adequately prepared to meet the CSRD’s requirements.
Starting now allows businesses to anticipate the profound changes the directive entails. Key steps such as double materiality analysis, data structuring, and integrating technological tools require time and resources. Delaying action could lead to significant challenges, such as:
- Difficulty collecting the required data within the deadlines;
- Audits not being validated due to a lack of preparation;
- Financial penalties for non-compliance.
How can digital tools, and particularly AI, contribute?
Digital technologies play a crucial role in operationalizing the CSRD. ESG data is often heterogeneous, making manual processing insufficient. Digital tools simplify many tasks, such as:
- Collecting and centralizing data from multiple sources;
- Rapidly analyzing large volumes of information;
- Automating the generation of reports compliant with ESRS standards;
- Identifying trends or anomalies in data to enhance reporting accuracy.
When selecting an ESG solution, it’s essential to evaluate its relevance to the company, its compatibility with existing tools, and its capacity to evolve.
At Berexia, our EnvoEdge solution, powered by AI, is flexible and adaptable to the constantly changing ESG requirements. It leverages years of expertise in technology (data and AI) and industry partnerships.
EnvoEdge functions as a centralized ESG ERP capable of managing the entire ESG data lifecycle, from collection to the automated generation of reliable, compliant reports.
A final thought…
Overall, reporting is much more than a regulatory obligation; it is a powerful tool for enhancing transparency, optimizing performance, and meeting stakeholders’ expectations. The CSRD is just one example of the ongoing evolution, emphasizing the urgency to prepare now.
In this context, digital technology plays a key role in simplifying and accelerating the reporting process. With tools for data collection and analysis, companies can automate the gathering and processing of information, ensure consistency, and produce reports compliant with international standards. Digital solutions also allow for data centralization, improved traceability, and real-time insights, transforming reporting into a strategic lever to anticipate future challenges.
For any company committed to sustainability, investing in digital solutions is now indispensable.
Anticipating these requirements today, with the support of digital tools and AI, is crucial to turning these constraints into strategic opportunities. It’s a chance to rethink business models and place sustainability at the core of performance.
