Prepare your organisation for CSRD

Are you already reporting on your organisation's impact on people and climate? Every organisation faces increasingly complex sustainability and social responsibility challenges. A key component is the obligation to comply with the Corporate Sustainability Reporting Directive (CSRD).  

In the coming years, every organisation must comply with ESG legislation like the CSRD. In this blog, Sander Veenstra, Product Manager (Procure-to-Pay) at ISPnext, zooms in on the importance of CSRD and how to deal with it effectively from Finance & Procurement.

What is CSRD?

This transparency provides valuable insights into how an organisation addresses environmental issues, social responsibilities and governance. Sander: "Specific to Finance & Procurement, this means that your organisation should be able to provide structured and reliable information on ESG practices. The CSRD opens the door to improved sustainability performance and enables your organisation to meet stakeholder expectations." 

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Steps for the CSRD

Below are the three steps you can follow to be ready for the CSRD obligation: 

1. Integrate ESG data into your business processes
   Easily request ESG data and deliver reliable information to meet growing stakeholder demands. Sander: "The CSRD offers a unique opportunity to create value through transparency and accountability. By complying with ESRS standards, your organisation can not only meet legal requirements, but also build a solid foundation for growth, build trust with stakeholders and integrate sustainability performance into core strategies."
   
   
2. Buy sustainably and comply
   Include sustainability criteria when selecting and managing suppliers. By integrating sustainability practices into your procurement process, you will meet CSRD requirements as well as having a positive impact on the environment and society. 
   
   
3. Extend financial reporting for CSRD
   Indeed, the inclusion of ESG criteria in financial reporting is becoming increasingly critical in an organisation's sustainability performance. Take advantage of automated reporting functionalities to generate CSRD reports quickly and accurately. This reduces the risk of errors and ensures consistency in your reporting.

The CSRD in your financial process

Start today in your finance department and add value to financial reporting for risk management. Sander: "Make sure you extend your financial reports for the CSRD. Indeed, the inclusion of ESG criteria in financial reporting is becoming increasingly critical. Investors and financial institutions evaluate not only the profit figures, but also a company's sustainability performance. Integrate this ESG data into your financial processes and ensure accurate reporting."

The CSRD in your procurement process

And you can also make metres in the procurement department: buy sustainably. Sander: "If we zoom in on the Procurement department, you see that this department is the key element in pursuing sustainability goals. Include sustainability criteria when selecting and managing suppliers. By integrating sustainability practices into your procurement process, you meet CSRD requirements as well as having a positive impact on the environment and society." 

ISPnext's solutions help you comply with the CSRD: "Vendor Management allows you to organise and retain data from your suppliers. In addition, you can request certificates and extract information through questionnaires. Your suppliers can easily upload the requested documents, certificates and questionnaires via the Supplier Portal."

You can be ready in time for CSRD requirements with the right steps and planning. We are happy to advise existing customers and potential ISPnext users.