By Kenneth George
Discover how Focus360 Energy aids sustainable development with Sustainability Statements.
In an increasingly eco-conscious world, businesses are grappling with how best to report on their sustainability efforts. The introduction of the Corporate Sustainability Reporting Directive (CSRD) has brought this challenge into sharp focus. To gain a deeper understanding of the impact of CSRD on companies, I spoke with Stefan Maatman from Vastint and Stephan de Bie from Vesteda. Their insights shed light on the significant opportunities and hurdles that come with this new directive.
The Transition from Marketing-Driven to Compliance-Focused Reporting
Both Vastint and Vesteda have long been committed to sustainability, but the CSRD marks a significant shift in how they approach reporting. Stefan Maatman, Group Sustainability Manager at Vastint, explains, “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.”
For Vesteda, a residential investor with a portfolio of about 28,000 homes, the CSRD means adopting a uniform and measurable approach to sustainability. Stephan de Bie, Sustainability Manager at Vesteda, notes, “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.”
Opportunities the CSRD Brings
The CSRD is seen as a catalyst for positive change. Stefan Maatman believes that the directive allows Vastint to differentiate their sustainable buildings from others. “We invest for the long term and are therefore willing to invest in sustainability,” he says. This commitment is reflected in their portfolio, which includes 62 office buildings, 49 hotels, and 533 rental apartments under development.
Stephan de Bie adds that the CSRD creates a level playing field, ensuring that sustainability is measured consistently across companies. “The CSRD helps create a common language throughout the supply chain,” he asserts. This uniformity can drive better communication and more efficient operations across the industry.
The Challenges of Implementation
Despite the opportunities, the complexity and requirements of the CSRD pose significant challenges. Stefan explains, “This is really new for us… European legislation 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.”
Vesteda, although not required to comply until the reporting year 2025, has already started preparations. Stephan de Bie echoes the challenges, 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.”
Practical Approaches to CSRD Compliance
Both Vastint and Vesteda have adopted strategic approaches to tackle the CSRD’s demands. Vastint’s journey began with understanding the directive’s requirements. “The first step was to understand what it entails. And that is quite a task for some topics,” Stefan notes. They identified relevant topics such as energy consumption, material use, and CO2 emissions, and started collecting data.
They conducted a dual materiality analysis, involving 15 interviews with stakeholders to gather input. An external party 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,” explains Stefan.
Vesteda, with experience in similar reports like the Global Reporting Initiative (GRI), formed a dedicated team led by the CFO and a project manager from the legal department. “We remain in control but are supported by an accounting firm that challenges and sharpens us,” Stephan shares.
Tips for Effective CSRD Implementation
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Efficiency in Data Management: Stefan stresses the importance of a clear system for managing data. Tracking hundreds of data points across different divisions is not feasible with Excel. Suitable software solutions can make the process more efficient.
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Creating a Common Language: Stephan highlights the importance of creating a common language within the organisation regarding sustainability. This aids in unlocking information and driving change.
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Starting Early: Both experts underscore the importance of starting early. Preparations should begin as soon as possible, as the CSRD is very time-consuming. External expertise can help avoid pitfalls and develop an effective approach.
Conclusion: Embracing the CSRD for Sustainable Success
The key to success with the CSRD lies in early preparation, seeking experienced partners, and fostering internal awareness and engagement around sustainability. Meeting CSRD reporting obligations can be seen as an opportunity to shape an organisation’s sustainability goals and strategy. By starting early and understanding what the CSRD means for your organisation, businesses can navigate this complex landscape effectively and contribute to broader sustainability goals.
Kenneth George
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