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The Corporate Sustainability Reporting Directive (CSRD) is a game-changer for corporate transparency. With new rules to enhance consistency and comparability in sustainability reports, companies are now required to disclose their environmental, social, and governance (ESG) practices in more detail than ever.
The CSRD impacts around 50,000 companies, including EU subsidiaries of non-EU parents, so the need for streamlined compliance is pressing. Enter CSRD reporting software: an innovative tool for businesses that want to automate the tedious processes of data collection, analysis, and reporting.
Let’s dive into what these tools offer, and why they are a must-have for CSRD affected businesses.
What is CSRD software?
Key functionalities of CSRD software
- Data integration: Combines data from multiple sources for a unified view, ensuring accurate and comprehensive reports.
- Automated reporting: Generates reports automatically, cutting down on manual work and reducing human error.
- Compliance tracking: Monitors adherence to CSRD requirements, flagging any areas that need attention.
- Stakeholder engagement: Supports collaboration and communication with key stakeholders, including investors and regulatory bodies.
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Credit: Plan A
What do companies need to report on for the CSRD?
Companies must disclose an extensive range of ESG-related information, covering over 1,000 data points under the ESRS. Key areas of reporting include:
- Environmental impact: This includes everything from greenhouse gas emissions to water usage.
- Social responsibility: Employee welfare, diversity, inclusion, and human rights across the supply chain must be transparent.
- Governance practices: Board diversity, executive compensation, and ethical compliance fall into this category.
- Risk management: Companies must disclose how they handle sustainability-related risks, like climate change.
- Supply chain sustainability: Companies are also responsible for reporting on their suppliers’ sustainability practices.
Credit: Plan A
These reporting demands are rigorous. Companies must ensure robust data management and reporting systems to stay compliant and competitive.
Benefits of using a digital tool for CSRD reporting
Relying on manual processes for sustainability reporting is rapidly becoming obsolete. Digital tools for CSRD reporting provide several key advantages:
- Increased efficiency: Automation streamlines data collection and report generation, significantly reducing the time and resources required for compliance.
- Improved accuracy: By minimising human error, digital tools enhance the reliability and precision of sustainability data.
- Enhanced data management: These platforms enable seamless data integration from multiple sources, eliminating the inefficiencies and risks associated with manual input.
Ultimately, digital tools empower your team to focus on high-level sustainability strategies rather than getting mired in administrative tasks.
10 best CSRD reporting software
Plan A
Plan A's CSRD Manager is a comprehensive solution designed to simplify CSRD reporting for European businesses. It offers a streamlined approach to managing all aspects of the reporting process.
The CSRD Manager includes features that make compliance more straightforward, such as data collection, stakeholder collaboration, and auditing. Personalised support from policy experts ensures that businesses can confidently navigate each step of their CSRD journey.
One of the key strengths of Plan A's CSRD Manager is its integration with carbon management capabilities. By combining carbon accounting with decarbonisation support, the platform automatically calculates and includes carbon-related disclosures from ESRS E1 directly in the CSRD report. This decarbonisation-first approach helps businesses speed up their data collection process to comply with regulations and reduce their environmental impact.
Key features include:
- Targeted task management for efficient data handling
- Streamlined CSRD and carbon-related reporting
- Personalised support from subject matter experts
Credit: Plan A
Overall, Plan A's CSRD Manager provides an effective way to efficiently align with regulatory requirements while enhancing sustainability strategies. It turns compliance into an opportunity for businesses to drive impactful change and improve their sustainability performance.
Coolset
Coolset provides a platform that supports CSRD compliance by facilitating a double materiality assessment and reporting on ESRS disclosures. It includes two main modules, Carbon Management and Compliance Management, which can operate independently or together, offering tools to manage carbon emissions and meet CSRD requirements.
IBM
IBM’s solution, through its Envizi ESG reporting frameworks module, enables organisations to track and report sustainability metrics to align with CSRD. It aims to improve transparency and compliance with environmental, social, and governance standards for large enterprises.
Workiva
Workiva offers a CSRD reporting tool that simplifies compliance and reporting processes. It features capabilities for data collection, management, and reporting, promoting accuracy and consistency in CSRD disclosures. The platform also supports collaborative efforts across various teams.
Greenomy
Greenomy provides a platform designed for ease of use in CSRD reporting, automating data collection and providing insights that comply with regulatory requirements. It aims to facilitate a smooth transition to sustainable practices while ensuring compliance with CSRD mandates.
Greenly
Greenly tool focuses on carbon accounting to support CSRD reporting, helping organisations measure and manage their carbon footprint. It features automated data integration and real-time insights to improve the reporting on environmental impacts.
Watershed
Watershed’s CSRD reporting tool is designed to support climate action, enabling companies to measure, reduce, and report greenhouse gas emissions. The tool is tailored for high accuracy and compliance with global standards, assisting businesses in achieving sustainability goals.
Ecocharting
Ecocharting offers a visualisation tool that helps in the effective presentation of sustainability data. This tool is useful for creating clear and compliant CSRD reports, enabling organisations to illustrate their environmental impact and sustainability efforts visually.
Codegaia
Codegaia provides a platform that integrates CSRD compliance into business operations. It offers tools for efficient sustainability data management, helping companies adapt to regulations and improve their sustainability reporting.
Cubemos
CubeMos offers software that streamlines the CSRD reporting process through automation and data management. This tool helps companies produce detailed reports that comply with CSRD requirements, reducing the time and effort needed for accurate and efficient sustainability reporting.
How to choose the best CSRD reporting software for your company?
Picking the right CSRD reporting software can make or break your sustainability journey. You don’t just need a tool that ticks the compliance boxes—you need one that transforms how your business handles ESG data and reporting. Here's what to look for:
- All-in-one platform
You want a solution that covers essential CSRD tasks. The more integrated, the better. It simplifies the whole reporting process. - Streamlined data collection
Collecting CSRD data doesn’t have to be a headache. Look for software that lets you gather the exact data points you need, involves all your stakeholders, and offers phase-in options to ensure a smooth start. - Collaboration tools
Your team should be able to collaborate effortlessly. The right software will let you assign tasks, communicate easily, and even bring auditors into the loop—so no one’s left behind in the process.
Credit: Plan A
- Built-in carbon management
Carbon data is challenging but crucial. Choose a platform that integrates carbon tracking into your CSRD process, making it easy to report on ESRS E1 disclosures and manage your carbon footprint. - Expert support and insights
Even the best software is better with a helping hand. Opt for a solution that offers expert guidance when needed, from gap analysis to learning opportunities, ensuring you stay ahead in the CSRD game.
The right CSRD software isn’t just about compliance—it’s about transforming how your business approaches sustainability. Choose wisely.
Why are carbon management capacities important to have in a CSRD solution?
Carbon management is no longer optional. The CSRD mandates that companies report on their greenhouse gas emissions. Tracking and managing these emissions effectively—whether Scope 1, 2, or 3—requires robust software solutions.
Software with strong carbon management features allows companies to identify emission sources, set reduction targets, and track progress. This helps companies align their goals with science-based targets (SBTs), enhancing their credibility in the eyes of investors and consumers alike.
Aligning with Science-Based Targets (SBTs)
It’s not enough to track emissions; companies must align their reduction strategies with SBTs. CSRD software can help you do just that by using science-backed data to guide your targets. This alignment boosts your company's sustainability credibility, showing stakeholders that you’re committed to tackling climate change in a meaningful way.
Reporting on carbon emissions
Under the CSRD, companies must report on Scope 1, 2, and 3 emissions, covering direct, indirect, and value chain emissions. A reliable reporting tool should automate this, offering detailed insights into emissions, reduction strategies, and offset initiatives. Such transparency is key to maintaining trust with stakeholders like investors, regulators, and customers.
Key elements of carbon emissions reporting include:
- Scope 1, 2, and 3 emissions: Full coverage across all scopes is necessary to present a complete picture of your carbon footprint. Scope 3, in particular, can be complex but is vital for demonstrating accountability across the entire value chain.
- Reduction initiatives: Disclose and track progress on initiatives aimed at reducing emissions, ensuring alignment with science-based targets (SBTs) and broader sustainability goals.
- Carbon offset strategies: Clearly report on the role of carbon offsetting, whether through investments in renewable energy, carbon credits, or nature-based solutions, and ensure they complement direct reduction efforts rather than replace them.
Incorporating carbon management into your overall sustainability strategy goes beyond regulatory compliance—it is key to long-term success. Effective carbon management can position your company as a sustainability leader by reducing operational costs, enhancing brand value, and meeting stakeholder expectations.
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Credit: Plan A
With the Corporate Sustainability Reporting Directive set to reshape the way companies report on sustainability, the importance of robust, user-friendly software cannot be overstated. Choosing the right CSRD reporting software will save time, improve accuracy, and keep your business compliant. Plus, these tools do more than tick compliance boxes—they empower companies to become sustainability leaders in their industries.
Invest in the right software, and you’ll be setting your company up not just for compliance, but for long-term sustainability success.
Ready to see Plan A’s CSRD Manager in action? Schedule a call with one of our CSRD experts today.
