Are You Ready for CSRD? Insights from PwC’s Survey on CSRD Readiness

The Corporate Sustainability Reporting Directive (CSRD) is reshaping the way businesses approach sustainability reporting. With its ambitious requirements, companies must assess their readiness to ensure compliance and seize strategic opportunities. According to a recent survey conducted by PwC, many businesses are still in the early stages of their CSRD readiness journey, highlighting the urgency of preparation.

CSRD Readiness: A Transformative Challenge

The term CSRD readiness refers to an organization’s ability to meet the comprehensive sustainability reporting requirements mandated by the European Union. This includes understanding the directive’s scope and aligning internal processes, governance, and technology to produce high-quality disclosures.

PwC’s survey found that as of early 2024, only 4% of companies required to disclose under CSRD were fully prepared. Nearly half were still familiarizing themselves with the directive’s intricacies, emphasizing the importance of a structured approach.

Related Article: EFRAG Finalizes First Three ESRS Implementation Guidance Documents

Key Highlights from PwC’s CSRD Readiness Survey

PwC’s comprehensive survey provides valuable insights into the state of CSRD readiness across industries, showcasing both challenges and opportunities for organizations.

Below are the most notable findings from the report:

• Lagging Preparedness: Only 4% of companies required to disclose under CSRD in FY2024 are ready to publish their first report. Meanwhile, 22% are still grappling with understanding the requirements, and 5% have not yet begun their preparations.

• Data Complexity: More than 55% of companies identified data quality and consistency as their biggest hurdles, with 44% citing a lack of standardized reporting formats as a critical issue.

• Resource Constraints: Nearly 45% of organizations face challenges due to limited resources, while 27% are concerned about data security and confidentiality in managing sustainability information.

• Strategic vs. Compliance Mindset: Among entities reporting in FY2024, 50% view CSRD as a strategic opportunity, while 63% of those reporting in FY2025 perceive it primarily as a compliance task.

• Double Materiality Progress: About 64% of early adopters have started mapping sustainability matters across their value chains, but only 35% have established clear methodologies to filter material impacts, risks, and opportunities.

• C-Suite Involvement: The CEO and CFO are seen as the most influential leaders in CSRD implementation, with nearly 73% of entities recognizing their critical roles. The Chief Sustainability Officer (CSO) is also emerging as a vital driver of organizational alignment and strategy.

• Training Implementation: While 48% of FY2024 entities have implemented comprehensive CSRD-specific training programs, a significant 37% have only introduced partial training, and 15% are still in the process of developing such programs.

These findings emphasize that while the journey toward CSRD readiness is complex, organizations that act early and strategically can unlock significant value, positioning themselves as leaders in sustainability and innovation.

Related Article: Double Materiality: A Guide for CSRD Compliance

Steps to Achieve CSRD Readiness

Achieving CSRD readiness involves a series of strategic steps:

1. Scoping and Assessment: Start by determining if your organization is within CSRD’s scope. This depends on factors like company size, turnover, and balance sheet totals.

   
   

2. Double Materiality Analysis: Identify which sustainability topics are material to your business. This analysis ensures your reporting reflects both financial risks and societal impacts.

   
   

3. Data Readiness: Evaluate your current data collection processes and pinpoint gaps. Establish systems for collecting accurate, reliable data aligned with the European Sustainability Reporting Standards (ESRS).

   
   

4. Governance and Collaboration: Foster collaboration across the C-suite. Leadership from the CEO, CFO, and Chief Sustainability Officer (CSO) is critical for successful implementation.

   
   

5. Technology Integration: Leverage digital tools to streamline data management, enhance reporting accuracy, and enable timely compliance.

Double Materiality and Leadership in Focus

One of the key requirements under CSRD is conducting a double materiality assessment—a process that evaluates both the financial risks of sustainability issues and their societal impacts. While 64% of early adopters have begun mapping sustainability matters across their value chains, only 35% have established clear methodologies to filter material risks and opportunities.

Leadership plays a pivotal role in this transformation. PwC’s survey indicates that 73% of organizations see the CEO and CFO as the most influential figures in driving CSRD implementation. Additionally, the role of the Chief Sustainability Officer (CSO) is growing in prominence as organizations work to align sustainability efforts with their broader strategies.

The Importance of Prioritizing CSRD Readiness

Organizations must act swiftly with the first wave of CSRD reporting set to begin in 2025. Embracing CSRD readiness ensures compliance and positions businesses as leaders in sustainability. Companies that proactively adopt robust reporting frameworks can unlock benefits such as improved stakeholder trust, enhanced operational efficiency, and stronger market positioning.

Turning Readiness into Opportunity

CSRD is not just about meeting regulatory requirements—it’s about driving meaningful change. PwC’s survey on CSRD readiness reveals that while challenges exist, the opportunities for growth, resilience, and innovation are immense. Organizations that prioritize preparation today will lead the charge toward a more sustainable future.

Are you ready for CSRD? Now is the time to assess, adapt, and act.

You can find the full PwC report here.

Stay informed on the latest ESG insights and updates. Follow us on LinkedIn.  

---

Stay Informed and Join the Conversation!

Want to stay ahead in the world of sustainability? Subscribe to our newsletter for the latest insights on ESG trends, sustainability reporting, and innovative strategies.

💡 Be part of the change! Join our ESG Community Forum to share your perspectives, connect with like-minded professionals, and shape the future of sustainable practices.

👉 Subscribe Now and Engage in the Forum