As the deadline for complying with the EU Corporate Sustainability Reporting Directive (CSRD) approaches, company leaders will soon need to evolve their reporting process. The CSRD and its underlying disclosure standards, the European Sustainability Reporting Standards (ESRS), usher in a new era of reporting, requiring companies operating in the EU to provide detailed, standardized responsible business and sustainability disclosures that are audit-grade.  

The temptation to pause and await further clarifications — such as outcomes from the “Omnibus Simplification Package” — may seem prudent, but that’s a risky calculation. The direction of travel is clear, and operational readiness is a multiyear endeavor that cannot wait. 

Change Management: The Deciding Factor 

CSRD compliance is far more than a reporting exercise. It requires a transformation in how your company operates, collaborates and delivers information — with audit-ready precision and cross-functional accountability.  

If your company has experience with voluntary responsible business reporting, you’re somewhat ahead of the curve. But regulated, externally assured reporting is a different game altogether, comparable to the shifts required when financial reporting became regulated. The scale of change necessitates active executive sponsorship, clear ownership and a culture that embraces transparency and due diligence. 

Acting Now Is Essential 

Waiting for absolute certainty from regulatory bodies creates a dangerous illusion. The core requirements of the CSRD are already defined.  

Delaying action can leave your organization scrambling to catch up, leading to higher implementation costs, operational disruptions and potentially subpar reporting that may expose your organization to fines and reputational risks. Early movers can pilot new processes, identify data gaps and course-correct before mandatory disclosures are enforced, therefore gaining an advantage in data quality, audit readiness and stakeholder credibility. 

Key Steps for Success 

1. Expand Cross-Functional Collaboration: Sustainability, finance, legal, risk, HR, IT, audit, procurement and other key functions must all be fluent in responsible business principles and actively engaged in reporting processes. 

2. Upskill and Train: Teams require targeted training in data governance, due diligence and audit-level documentation — going beyond simple awareness. 

3. Resource for Rigor: Subject matter experts need greater support, including additional staff, time and specialized expertise. Empowering them is critical for accurate, timely and complete disclosures. 

4. Embed Accountability: Define clear roles, set ownership and align performance incentives. Make CSRD compliance a shared objective, visibly sponsored by both the C-suite and the board of directors. 

5. Invest in Technology: Manual data collection is no longer viable. Integrated systems for data management and workflow are non-negotiable to meet the demands of CSRD. 

Executive Leadership: Setting the Pace 

Leaders must model the mindset shift that CSRD requires. Treat compliance as a transformation, not a checkbox exercise. Champion resource allocation and insist on regular progress updates.  

Building a Resilient, Future-Ready Organization 

CSRD compliance is ultimately a change management effort — one that will be won or lost at the executive level. By setting new expectations, providing the necessary resources and embedding accountability, you can transform compliance from a regulatory burden into a strategic advantage.  

The upcoming Omnibus Simplification Package may clarify technical nuances, but the urgency to act is now. Operational readiness takes time, and the cost of playing catch-up is high. Is your organization equipped to meet not just the letter of mandatory reporting, but to thrive in this new era of transparency and due diligence? 

FleishmanHillard is here to help your organization navigate this evolving landscape. Connect with us today to propel you forward, no matter where you are on the winding road to CSRD readiness.  

Bob Axelrod is a member of FleishmanHillard’s global Responsible Business and Impact leadership team. He has 30+ years’ experience advising corporations on Responsible Business strategy and reporting and is spearheading a multi-agency effort to help clients effectively comply with mandatory reporting requirements, including the EU’s Corporate Sustainability Reporting Directive