This page describes datapoints to treat in relation to CSRD framework. For more general information on ESG Reporting datapoint prioritization, check this article.
Introduction
Under the Corporate Sustainability Reporting Directive (CSRD), companies are required to disclose a broader and more detailed set of sustainability data. This makes the prioritization of the right datapoints a critical step in ensuring compliance and delivering meaningful ESG (Environmental, Social, and Governance) reporting. The CSRD emphasizes double materiality, requiring organizations to report on both the impact of sustainability issues on the company and the company’s impact on society and the environment. Identifying and focusing on the most relevant datapoints is essential for aligning with these regulatory expectations. This article will guide you through how to prioritize key datapoints in your CSRD reporting initiative using Greenly’s ESG reporting platform.
Main Rules for Datapoints Prioritization
Exclude Non-Material Datapoints
Datapoints that are not material should not be included in your reporting goals. Materiality determines the significance of a datapoint in influencing stakeholders' decisions and impacting the company’s sustainability performance.
Recognize Non-Mandatory Material Datapoints
Some material datapoints may not be mandatory to report. It is essential to distinguish between mandatory and voluntary datapoints to ensure compliance without overburdening your reporting process.
Anticipate complexity on some datapoints, in particular, in particular those qualified as "Metrics"
Datapoints that address the quantitative measurement of the company's impacts can be challenging to produce.
You must also be aware that for those datapoints, the data must be produced at all cost, even by using proxy or assumptions. The company can't just say that the data is not available (contrary to other kind of datapoints, such as policies, actions and targets description).
Mandatory vs. Optional Datapoints
The CSRD framework provides relative flexibility to help companies focus on the most important items of their reporting:
Mandatory Datapoints with Opt-Out Options
Some mandatory datapoints can benefit from an opt-out period of 1 to 3 years. For instance:
1-year opt-out (e.g. Scope 3 GHG emissions for companies with fewer than 750 employees)
2-year opt-out (e.g. Number of invasive alien species for companies with fewer than 750 employees)
3-year opt-out (e.g. Disclosure of financial impacts arising from pollution-related risks (all ESRS))
Voluntary Datapoints
These datapoints are not mandatory but can be reported to provide additional insights. For example, disclosure of the timeframe in which policies in high-water stress areas will be adopted.
Feel free to look at our training to get some guidance!