The CSRD: Opportunities and challenges for businesses – Insights from experts
With the introduction of the Corporate Sustainability Reporting Directive (CSRD), many companies face the challenge of elevating their sustainability reporting. To provide valuable insights for companies still grappling with the implementation, we spoke with two experts: Stefan Maatman from Vastint and Stephan de Bie from Vesteda. Their perspectives offer a nuanced view of the opportunities and hurdles brought by the CSRD.
Opportunities of the CSRD
Both Stefan Maatman from Vastint and Stephan de Bie from Vesteda see significant opportunities in the Corporate Sustainability Reporting Directive (CSRD). Stefan Maatman emphasizes that sustainability has always been a priority for Vastint, which manages a portfolio of 62 office buildings, 49 hotels, and 533 rental apartments under development. “We invest for the long term and are therefore willing to invest in sustainability,” he states, viewing the CSRD as a way to differentiate their buildings from others that are less sustainable. For Vesteda, a residential investor with a portfolio of about 28,000 homes, the CSRD means that companies must adopt a uniform and measurable approach to sustainability. Stephan de Bie comments, “It’s positive that everyone will look at sustainability in the same way and measure it similarly. The CSRD helps create a common language throughout the supply chain.”
Challenges of the CSRD
Despite the opportunities, the complexity and requirements of the CSRD also pose significant challenges for both companies. Stefan explains, “This is really new for us. We did report on sustainability before, but it was more marketing-driven and resulted in an overview of BREEAM and LEED certifications. But now that CSRD applies to us, reporting has taken on a different level. We have to report across 12 different divisions, in various countries, which is a huge challenge. Especially since it involves European legislation that refers to various policies and data points. It makes it very complex, and initially, it’s quite a search. Especially since we had no experience with this before.”
Even though Vesteda is not required to comply with the CSRD until the reporting year 2025, they decided to start right away due to its importance for investors. Stephan de Bie echoes the challenges Stefan faces, adding, “The complexity and the sheer volume of KPIs and qualitative disclosures required by the CSRD can be a bit of overkill. Additionally, implementing and evaluating the CSRD can incur high costs, which might defeat its purpose. Reporting on everything doesn’t necessarily make you more sustainable. You also need to take actual action to improve sustainability.”
“Registration of sustainability varies greatly by country. Not all buildings have smart meters, and in some countries, energy meters are housed in locked transformer stations. Poland lacks a comparable energy label system, and the BENG methodology varies from country to country. The CSRD will assist in this, as everyone will need to report in the same way. This will make much more data available and increase transparency and knowledge in the market,”
– Stefan Maatman, Group Sustainability Manager at Vastint
The ideal approach
For Vastint, implementing the CSRD is new territory. “The first step was to understand what it entails. And that is quite a task for some topics,” Stefan Maatman notes. They then identified the topics they knew were relevant to them, such as energy consumption, material use, and CO2 emissions, and began collecting data on these topics.
They then conducted a dual materiality analysis to determine which sustainability-related topics impact the organization and vice versa. With the help of 15 interviews with their stakeholders, including tenants, contractors, suppliers, and colleagues, they gathered input for the materiality analysis. An external party then helped structure their sustainable impact and set up an audit process. “Working with an external party ensures that the ‘limited assurance standard,’ a necessary independent verification for CSRD reporting, is included early on. This way, a company won’t be surprised when the report is audited by an external accountant,” explains Stefan.
Vesteda had a clear advantage in implementing the CSRD, having experience with similar reports like the Global Reporting Initiative (GRI). They chose a structured approach and involved nearly the entire organization in this process: “We formed a team led by the CFO and a project manager from the legal department, supplemented by various teams from the organization. We remain in control but are supported by an accounting firm that challenges and sharpens us,” Stephan De Bie shares.
Practical tips
- Efficiency in data management: Stefan Maatman from Vastint stresses the importance of having a clear system for managing the vast amount of data required by the CSRD. Tracking hundreds of data points across different divisions is not feasible with Excel. Thus, look for suitable software solutions that make the data management process more efficient.
- Create a common language: Stephan de Bie from Vesteda emphasizes the importance of creating a common language within the organization regarding sustainability. This not only aids in unlocking information but also in driving change. Collaborate with partners who can help develop a coherent strategy and navigate the complex CSRD landscape.
- Start early: Both Stefan Maatman and Stephan De Bie highlight the importance of starting early. Don’t wait until the last minute; start preparations as soon as possible, as the CSRD is very time-consuming. External expertise can help avoid pitfalls and develop an effective approach that not only meets reporting requirements but also contributes to broader sustainability goals.
Get Started with the CSRD
The key to success with the CSRD lies in starting early, seeking experienced partners, and creating internal awareness and engagement around sustainability. Meeting CSRD reporting obligations can be seen as an opportunity to shape an organization’s sustainability goals and strategy. Get started immediately and explore what the CSRD means for your organization.
To learn more about the CSRD and how your organization can prepare effectively, CFP Green Buildings is here to help. We can assist with conducting a materiality analysis. Afterward, your organization will fully understand what the CSRD means for you, which topics are material, and which data points need to be reported to meet CSRD reporting obligations. Contact us for tailored advice.
