Strengthening your DEI reporting strategy
July 01, 2024
“By performing your double materiality assessment, you get a really good overview of the impact you have as an organisation.”
Roza Wegkamp, EU Taxonomy and CSRD Business Analyst at Dutch Bank ABN AMRO
For many companies across Europe, the road to compliance with the EU’s Corporate Sustainability Reporting Directive (CSRD) is well underway. However, as the first group of companies prepare to disclose on 2024 data, getting to grips with the practicalities of this legislation remains a challenge.
Our CEO Marc Roodhuyzen de Vries moderated the latest episode in our series of expert-led webinars on this topic, joined by two experts with unique perspectives to share: Roza Wegkamp, EU Taxonomy and CSRD Business Analyst at Dutch bank ABN AMRO, and our very own Camilla Morandi, CSRD Expert.
Check out the full webinar recording here.
CSRD reporting: From complexity to practicality
As a key player in shaping the CSRD strategy for one of the largest banks in the Netherlands, Roza is well-versed in the complexities of compliant reporting. “What’s very exciting about the CSRD – which also makes it challenging – is it’s scale,” she says. “It covers so many areas and leaves plenty of room for interpretation.”
This combination of breadth and precision makes it essential to implement a joined-up reporting approach. One that takes into account the perspectives of all stakeholders. That’s why internal collaboration is so important.
“When you’re carrying out the identification of impacts, risks and opportunities, it’s really helpful to have someone who has a full overview of the business,” says Camilla. “However, it’s also very important to have a range of stakeholders from all departments, as well as the Works Council, represented in the double materiality assessment and reporting.”
This cross-functional approach not only ensures more representative reporting but also streamlines the sharing of knowledge and skills, which can be a vital asset on your reporting journey.
Internal and external collaboration: A strategic catalyst
One challenge that often arises in the context of CSRD is the need to adopt a standardised approach to reporting on non-financial topics – such as carbon emissions, biodiversity and workers in the value chain.
Bringing together complementary skillsets can be a great help. “On the one hand, the sustainability department has deep expertise in impact assessing impact, stakeholder engagement and setting strategic objectives,” Roza continues. “On the other, the finance department is ideally placed to bring data-driven rigour to the reporting process.” Combining these methodologies is critical to enabling the high levels of standardisation and transparency required for CSRD reporting.
In addition to internal collaboration, working closely with external stakeholders is key to developing your reporting approach. “Much of the information that you’ll need won’t be available within your organisation but elsewhere in the value chain,” adds Roza. “This can be challenging, especially if your value chain partners aren’t subject to the CSRD themselves, and so aren’t obliged to collect the data you may need.”
One way to tackle such issues is to look outside your organisation in a different way – by working with industry peers so you can build alignment, share best practices and benchmark progress.
Driving transparency and sustainability progress
The CSRD reporting process requires companies to engage much more proactively with stakeholders throughout the entire value chain. There’s no denying that this will demand additional time and resources. Therefore, it’s crucial to foster a shared understanding of why this process is essential.
“Before starting your CSRD journey, it can be valuable to bring together all relevant stakeholders – including key suppliers and clients – for a CSRD onboarding session,” says Camilla. “Clearly explaining the broader reasons behind the need for standardised sustainability reporting can facilitate cooperation.”
This collaborative approach is critical to driving transparency across industries and, in turn, progress on sustainability.
For example, Roza reveals that the improved data quality resulting from CSRD implementation will help ABN AMRO to make better decisions on sustainability-linked financing.
“By performing your double materiality assessment, you get a really good overview of the impact you have as an organisation,” she concludes. “The insights from the process can then be fed back into your sustainability strategy to help you understand your organisation’s position in society – and define where you want to go. In short, reporting has never been more connected to your company’s values.”
Interested in more CSRD insights and best practices? Check out the full webinar here.
