CSRD Reporting: 5 Mistakes You Should Avoid
Lessons from early adopters of sustainability reporting
The Corporate Sustainability Reporting Directive (CSRD) affects thousands of companies across Europe. As the first wave of mandatory reports approaches, we're seeing patterns emerge - both in what works and what doesn't. Here are five common mistakes we've observed and how to avoid them.
Mistake 1: Treating CSRD as a One-Time Project
Many companies approach CSRD as a box-checking exercise - get the first report done, then figure out the rest later. This mindset leads to scrambling every reporting cycle instead of building sustainable processes. CSRD is ongoing; treat it like financial reporting with continuous data collection and regular audits.
Mistake 2: Ignoring Data Quality Until It's Too Late
CSRD requires third-party assurance, which means your data will be scrutinized. Companies that wait until reporting time to worry about data quality find themselves unable to substantiate their claims. Start now by documenting data sources, establishing validation processes, and addressing gaps.
Mistake 3: Siloing Sustainability Reporting
When sustainability reporting lives in a separate team with separate systems, you get duplicated effort and inconsistent data. The most efficient organizations integrate sustainability data into existing workflows - the same ERP that tracks materials should feed sustainability metrics.
Reality Check
Companies that started CSRD preparation 18 months ago are now confidently approaching their first reports. Those starting now face a steep climb.
Mistake 4: Underestimating Scope 3 Emissions
For most manufacturing companies, Scope 3 emissions (supply chain) dwarf direct emissions. Yet many companies have minimal visibility into supplier data. Building the relationships and systems to collect this data takes time - it cannot be rushed in the weeks before a reporting deadline.
Mistake 5: Choosing Tools Before Defining Needs
The market is flooded with CSRD software solutions. Companies that buy tools before understanding their specific requirements often end up with expensive platforms that don't fit their workflows. Define your needs first, then evaluate solutions.