Slow is smooth and smooth is fast. Especially in the context of CSRD.
By issuing the CSRD directive, the European Union mandates companies to provide uniform, measurable, and transparent reporting on their sustainability efforts. This enables stakeholders to make informed decisions. While some companies aim to quickly showcase their efforts to stakeholders, it’s essential to pause occasionally for more efficient and expedited reporting. Paradoxically, this moment of reflection will ultimately accelerate progress.
Start ‘slow’. Make thoughtful choices.
“Slowly” might seem like an odd piece of advice, especially in today’s context where discerning consumers can swiftly impact stock prices or cancel brands. Add to that the reporting obligations, the demanding Corporate Sustainability Reporting Directive (CSRD) framework, and the subsequent requests for data and figures from stakeholders, suppliers, banks, credit providers, and governments regarding matters like CO2 reduction and waste management. In summary, this certainly won’t be the first or last blog discussing how to navigate CSRD requirements effectively.
Our advice is to start at the beginning. First, sharpen your strategy. This is an investment that requires time and effort, but will make you more relevant in the long term. The sharper your strategy, the more targeted you can be in focusing on sustainability, enabling you to use time and resources more efficiently and effectively.
Consult your stakeholders to assess the impact of your operations. What risks and opportunities are associated with your sustainability efforts? What ecological and social factors affect your business and vice versa? Stakeholders can greatly broaden your perspective and make you aware of things you may not immediately consider. This process helps determine strategic priorities for the coming years and enables you to achieve the greatest impact.
Because that is what CSRD aims to accomplish. Making thoughtful choices and formalizing them in business operations so that you can pursue a healthy balance between ecological, economic, and social impact. The process your company undergoes and the steps you take are assessed, not the amount of KPIs you can tick off from day one.
You don't achieve this by taking shortcuts or finding loopholes. Instead, it's about establishing a clear strategic focus rooted in a long-term vision of overall business operations.
Smooth integration and implementation
Next step is to smoothly integrate this strategy into your operations. This involves balance, planning, control, and refinement. Key success factors in implementation are aligning internally and sailing a common course from day one. Communication about expectations and objectives from the top down is crucial here.
We guide companies through strategic workshops so that the decision-makers in your company can determine a common strategy, if one isn't already in place. However, the success of this strategy also depends on effective implementation on the ground. Every department must be involved in the integration. This can be achieved by setting objectives and KPIs consistently, measuring and monitoring them at a controlled pace. All within a clear and realistic timeframe.
By keeping a finger on the pulse with your stakeholders and regularly consulting them about risks and opportunities, you can then assess whether your strategy is still relevant with an annual stress test.
Fast thanks to policy and established processes.
All things considered, it's quite a process to go through. Where does the factor of 'speed' come in then? Once you know which direction you want to take and how you're going to follow it, this process automatically kicks into a higher gear.
The KPIs you need to report on will result from the dashboard you've installed. By evaluating and monitoring every year, you can also intervene more effectively the following year. If you learn from mistakes, they'll also occur less frequently in the future.
In the long term, you will accelerate sustainability faster by giving the process time and space to work.
Feel free to make an appointment here if you want to learn more about our unique Lean Sustainability framework, which helps companies transition from financial to sustainable operations in a controlled and structured manner. We can also guide your company into taking the first steps towards CSRD compliance, or assessing how 'CSRD-ready' your company is with our CSRD scan.