Mastering CSRD Compliance in 2024: Key Takeaways from the Frank Bold Webinar on ESG Reporting and Double Materiality
We know how challenging it can be to keep up with the ever-evolving ESG landscape. If you missed this weeks Frank Bold webinar, don’t worry we’ve got you covered. Here’s a concise summary of industry leaders’ key insights, findings, and actionable strategies, designed to help you navigate the complexities of CSRD compliance.
Double Materiality: Moving Beyond Checklists
The ESRS framework’s focus on double materiality was a central theme, emphasizing the importance of reporting impacts on business value, society, and the environment. Despite this requirement, the Frank Bold study revealed that:
- Only 15% of companies explicitly linked impacts to material topics in their reports.
- Just 10% integrated identified risks into their business models or strategies, showcasing a significant gap in practical application.
The webinar panel recommended combining top-down strategic assessments with bottom-up data validation to address this. This approach ensures both comprehensive coverage and relevance in disclosures.
Climate Transition Plans: From Ambition to Action
Transition planning remains an essential component of CSRD alignment. While 42% of companies presented clear climate strategies, none addressed “locked-in” emissions or long-term transition risks.
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The best practices highlighted include:
- Scenario planning to model different pathways toward net-zero commitments.
- Robust tracking of Scope 3 emissions using standards like the GHG Protocol.
Sustainability Due Diligence: Closing the Stakeholder Gap
The study found that while 43% of companies claimed to have due diligence systems, only a small fraction demonstrated meaningful stakeholder engagement, with just 7% including clear input from affected parties.
Practical steps recommended during the webinar:
- Engage stakeholders early and throughout the process.
- Use qualitative methods, like interviews, to complement quantitative assessments.
Biodiversity Reporting: A Missed Opportunity
Biodiversity remains underreported, with only 11% of companies acknowledging impacts on ecosystems. Experts urged businesses to consider biodiversity in materiality assessments, especially for sectors like agriculture and textiles, where impacts are most pronounced.
Summary of the Webinar
The webinar highlighted the importance of focusing on substance over form in reporting. Instead of treating CSRD as a compliance exercise, companies should view it as an opportunity to enhance resilience, build stakeholder trust, and drive long-term value. The Frank Bold webinar served as a critical reminder: the CSRD journey is not about perfection but about continuous improvement. Stay tuned for more insights and best practices as we navigate these changes together.
In case you do find the time you can still Watch Frank Bold’s Webinar: www.frankbold.org
Original research regarding Businesses Embracing the ESRS and How Policymakers Avoid Creating Legal Uncertainty Around its Application: www.frankbold.research
