Client Snapshot
As sustainability reporting requirements evolve, an increasing number of organisations operating across global markets are preparing for compliance with emerging regulations while maintaining continuity with their existing reporting practices. But regulatory change can bring uncertainty, especially when reporting obligations are deferred or altered after a lot of preparatory work has been completed.
This case study focuses on a manufacturing company that has historically reported in accordance with Global Reporting Initiative (GRI) Standards and was preparing to transition to Corporate Sustainability Reporting Directive (CSRD) reporting requirements as part of its broader sustainability reporting journey. The scope of work was the development of the company sustainability report with focus on CSRD alignment and regulatory readiness.
The Challenge
- The company had historically produced GRI compliant sustainability reports but was transitioning to the CSRD framework as a Wave 2 reporting entity.
- The deferral of CSRD applicability for Wave 2 companies in the reporting process created uncertainty regarding reporting expectations for the reporting year.
- Considerable work had been done in developing a CSRD aligned report, so there was concern over duplication of work and loss of value from completed activities.
- Reporting teams were challenged to align current reporting requirements with expectations of future regulatory requirements.
- Internal stakeholders needed clarification on the reporting strategy after the deferment announcement, including the value of work already underway in relation to preparing for reporting under CSRD.
- Company needed to maintain the credibility of reporting and the confidence of other stakeholders in the face of a changing regulatory environment.
Our Approach
- The sustainability report was structured to remain fully aligned with GRI standards while incorporating key CSRD elements to demonstrate regulatory readiness.
- Created a dual framework reporting approach that builds on the work already done for CSRD alignment while also keeping it relevant for the current reporting cycle.
- Assessed reporting priorities against current and expected regulatory requirements balancing immediate reporting needs with long-term CSRD readiness.
- Peer benchmarking and analysis of changing regulatory expectations gave us clarity on how to navigate uncertainty.
- This approach allowed the Company to demonstrate foresight, maintain reporting integrity, and ensure prior efforts contributed to long-term sustainability goals.
Results Delivered
- Helped the company to retain and use the significant work already undertaken in preparing for CSRD.
- Created a sustainability report that followed current reporting requirements and included elements supporting future CSRD readiness.
- Improved clarity around reporting priorities despite regulatory uncertainty and changing compliance timelines.
- Made the company’s sustainability disclosures stronger by adding future-focused reporting considerations without losing focus on current reporting needs.
Impact
The engagement addressed a key challenge that many organisations are dealing with right now as they handle changing sustainability regulations, i.e., how to balance regulatory preparedness with changing compliance requirements. During regulatory uncertainty, the company’s dual-framework approach, which maintained previous CSRD-related efforts and was aligned with GRI Standards, allowed it to continue to provide credible sustainability disclosures. This approach safeguarded past investments, enabled stakeholder confidence and set up the organization for a smoother transition to future CSRD reporting requirements.
