ESG Reporting/ Reports, Studies
Approximately three quarters of companies preparing to report under the EU’s Corporate Sustainability Reporting Directive (CSRD) say that they are increasing the integration of sustainability into their decision-making processes, and many are also reporting a wide range of benefits, ranging to improved environmental performance to revenue growth, from sustainability reporting, according to a new survey by global professional services firm PwC.
The report also found that data quality and availability is one of the top barriers to CSRD implementation, yet nearly three-quarters of companies continue to use spreadsheets for sustainability reporting.
For the report, PwC’s Global CSRD Survey 2024, PwC surveyed more than 540 executives and senior professionals across more than 30 countries at companies preparing to file under the CSRD directive, including 60% at companies headquartered in the EU, across a broad range of sectors. More than half of the companies included in the survey had revenues greater than $1 billion, and 57% plan to file under the CSRD for the first time in 2025, on 2024 data.
The CSRD a major update to the EU’s Non-Financial Reporting Directive (NFRD), the previous EU sustainability reporting framework, significantly expanding the number of companies required to provide sustainability disclosures to over 50,000 from around 12,000, and introducing more detailed reporting requirements on company impacts on the environment, human rights and social standards and sustainability-related risk. The CSRD took effect from the beginning of 2024 for large public-interest companies with over 500 employees, followed by companies with more than 250 employees or €40 million in revenue in 2025, and listed SMEs in 2026.
The survey found that most companies are confident that they will be ready to report under the CSRD when they are required to do so, including 97% of companies that are expected to begin reporting in 2025, and 93% reporting in 2026. While companies report a high degree of confidence on sustainability topics that they already report on however, such as their workforce (96% confident) and climate change (94%), they appear less certain on less familiar CSRD topics, with only 62% reporting confidence in meeting reporting requirements on biodiversity, and 70% of affected communities.
As companies prepare to meet their CSRD reporting obligations, the study indicated that they are anticipating a series of benefits from their sustainability reporting efforts, with approximately half citing anticipated benefits including better environmental performance, improved engagement with stakeholders and risk mitigation. One of the key findings of the report was that companies farther along in their preparation – those preparing to report in 2025 – were significantly more likely to anticipate benefits in every category, particularly relating to financial benefits. For example, 38% of companies reporting in 2025 anticipate CSRD implementation will lead to revenue growth, compared to only 18% of those reporting in 2026, and 34% of 2025 reporters expect cost savings benefits, compared to only 16% of the latter group.
While companies appear generally confident in their ability to meet their CSRD obligations, the survey found that they continue to experience a series of challenges to their CSRD implementation initiatives. The most common barrier cited by companies was data availability and quality, with 59% citing this factor as an obstacle to a large or very large extent, followed closely by value chain complexity, with CSRD obligating companies to report on sustainability impacts, risks and opportunities across their value chains, at 57%, and staff capacity at 50%.
As companies grapple with data quality, however, the survey also indicated that many have yet to invest significantly in technology systems to manage their ESG data, with 74% of respondents reporting that they are currently using spreadsheets for sustainability reporting, far ahead of any other solution, with carbon calculation tools in second place at only 37%, followed by an integrated ERP system at 32%, and sustainability management software at 27%. Sustainability reporting-related technology investments are likely to grow, however, with another 47% and 49% planning or exploring the use of carbon calculation tools and sustainability software management tools, respectively.
The survey also found that companies expect sustainability reporting compliance to involve a significant cross-functional effort, with respondents reporting on average that eight business functions and departments are or will be involved in CSRD implementation. Top business functions currently involved in CSRD implementation include Sustainability at 93%, Finance at 77%, and the Executive Committee and Board at 73% and 72%, respectively.
In the report, co-authors Renate de Lange, Global Sustainability Markets Leader, Partner at PwC Netherlands, Nadja Picard, Global Reporting Leader, Partner at PwC Germany, and Kevin O’Connell, Trust Solutions Sustainability Leader, Partner at PwC US, wrote:
“Overall, remember that reporting under the CSRD and ESRS is a journey for everyone involved—regulators included. In the early years, reports will likely differ in significant ways among similar companies as stakeholders converge on a common understanding of best practices. What matters most at this stage is serious engagement by senior leaders to understand not only the CSRD’s detailed requirements but also its intent—and the opportunities it reveals for value creation.”
Click here to access the survey.
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