Beyond compliance: Enhancing trust through reporting
Observations on practices following Wave 1 of CSRD reporting
The implementation of the Corporate Sustainability Reporting Directive (CSRD) marked an important moment for businesses in the EU and beyond, transitioning sustainability reporting to mandatory standardized disclosures.
This report, based on an analysis of 200 Wave 1 CSRD reporters across many industries and geographies, reveals both the strategic opportunities and challenges.
For many of the organizations that reported in the first wave, mandatory reporting is not a starting point but a continuation of an ongoing journey. These companies have been developing sustainability strategies and setting targets, and embedding sustainability principles into their business models for many years. Mandatory reporting under sustainability standards has further formalized and codified these efforts—bringing greater consistency, comparability, and assurance to existing practices.
On the whole, most reporting organizations (reporters) found the transition to mandatory reporting under the CSRD more demanding than anticipated, highlighting the need for robust data management systems, cross-functional collaboration, and a cultural shift toward integrating sustainability into core business operations.
Early adopters are going further, leveraging mandatory sustainability reporting as a catalyst for innovation and differentiation. In particular, identification of sustainability impacts, risks and opportunities (IROs) and double materiality assessments (DMA) are emerging as strategic tools. These tools help organizations align sustainability efforts with risk management and growth opportunities, while carefully managing stakeholder expectations.
Deloitte Global’s analysis evaluates CSRD reporting practices across five industries—Financial Services; Consumer; Technology, Media and Telecommunications; Energy, Resources and Industrials; and Life Sciences and Health Care—and highlights industry-specific trends, challenges, and areas of opportunity.
Insights and key recommendations include prioritizing DMA integration with strategy and risk management, setting ambitious and dynamic targets linked to supportable actions, fostering cross-functional collaboration, building a strong foundation of sustainability data, and engaging proactively with stakeholders across the value chain.
The CSRD represents a pivotal shift, with mandatory disclosure and assurance driving transparency and accountability in sustainability reporting. For organizations willing to embrace this change, sustainability reporting becomes more than a requirement—it can be a catalyst for innovation, resilience, and trust.
Jeff Schwartz, Deloitte Global Non-Financial Reporting Disclosures co-leader
The CSRD establishes a framework for corporate sustainability reporting, creating important transparency for both internal and external stakeholders. It also compels organizations to make meaningful progress on their actions and programs to become a more sustainable business.
Laurent Vandendooren, Deloitte Global Non-Financial Reporting Disclosures co-leader
Each of the recommendations in this report echoes what leading organizations are doing today to move from compliance to strategic value:
- Embedding sustainability into core business functions
Embed sustainability into core business planning and execution across legal, finance, risk, operations so it becomes a driver of strategic priorities, performance management, and capital allocation. - Using the assessment of IROs as a strategic tool
Leverage materiality assessments to prioritize the sustainability matters most critical to both business success and stakeholders—shaping KPIs, investment decisions, and risk mitigation.
- Investing in scalable, integrated data systems
Build flexible, composable data and technology architectures that enable reliable, transparent, and real-time reporting. This foundation supports regulatory compliance, stakeholder trust, and internal decision-making. - Setting bold and adaptive targets
Move beyond short-term metrics. Define forward-looking measurable targets that are regularly reviewed, linked to incentives, and supported by accountability. Credibility is enhanced when targets are science-based, when appropriate.
- Operationalizing sustainability data
Treat non-financial data as a strategic asset. Embed sustainability metrics into scenario planning, capital expenditure decisions, and performance management cycles—not just annual reporting. - Engaging early across the value chain
Proactively involve suppliers, collaborators, and stakeholders to help surface IROs, improve data quality, and enhance transparency and enhance shared action.
- Driving collaboration across functions through an effective governance structure
Establish clear governance and accountability structures to enable effective cross-functional collaboration across sustainability, finance, legal, risk, and technology to ensure clear ownership, consistency, and operational follow-through in reporting and action.
- Adopting a mindset of continuous learning
Treat mandatory sustainability reporting as a capacity-building journey. Organizations that embed continuous improvement and upskilling are often more agile in responding to regulatory evolution and shifting stakeholder expectations.
To learn more, read the full report.
Ivan Kukhnin
