Mastering CSRD compliance: How AI-powered CSRD Suite Software simplifies sustainability reporting

Navigating the Corporate Sustainability Reporting Directive (CSRD) can be a challenging task for organisations. From conducting Double Materiality Assessments to data collection and stakeholder engagement, the process requires careful planning and execution. Let alone the Omnibus package and the changes it brings to most reporting organisations. CSRD Suite Software by Impact Institute is designed to simplify this journey - offering an end-to-end affordable and efficient solution that accelerates compliance, reduces manual effort, and ensures comprehensive reporting. 

The software guides users through every stage of CSRD compliance. It initiates the CSRD project, assists in executing the Double Materiality Assessment, facilitates Data Collection, and allows organisations to invite auditors to review the process. The goal is to make sustainability reporting, whether voluntary or compulsory, achievable and efficient, saving time and resources. 

With decades of experience in building tech start-ups and developing cutting-edge products that meet market needs, Rogier Schutte, Product Manager at Impact Institute, sees the opportunity in Impatec and CSRD Suite despite the regulatory changes Omnibus brings.

‘’The market right now needs companies not only to comply with regulations such as CSRD but also to take a step further towards making a real impact. CSRD Suite has all the impact capabilities to assist companies in this journey.’’

CSRD Suite Software creates a use case for AI-powered technology which makes a real positive impact in the world. With the software, organisations can make decisions based on accurate, impact-driven data.

Impacts, Risks and Opportunities (IRO) and defining what is material 

A key component of CSRD compliance is determining your material topics through a Double Materiality Assessment. This involves engaging stakeholders and identifying key environmental, social, and governance (ESG) topics. Within the CSRD Suite, organisations can conduct thorough stakeholder analyses and define European Sustainability Reporting Standards (ESRS) topics for reporting under CSRD. 

Impact Institute's extensive knowledge of impact measurement and sustainability reporting is integrated into the CSRD Suite. A standout feature is the Impacts Risks and Opportunities (IRO) suggestion tool, which uses a vast dataset to recommend relevant IROs based on the company's activities and value chain.  

"The software automatically maps your value chain and identifies potential impacts, risks, and opportunities," says Schutte. "From an impact perspective, nothing will be missed. It ensures you're not overlooking critical impacts and risks." 

Users can then score a comprehensive list of IROs to establish materiality. The scoring system ranges from 1 to 5, with the option to leverage Impact Institute's benchmarks built over the past decade. However, internal and external stakeholder input remains crucial. "You can organise workshops, surveys, or interviews with stakeholders like NGOs or suppliers to gather valuable insights. It’s all about combining data-driven suggestions with real-world expertise," Schutte adds. 

This structured approach ensures companies can confidently identify their most pressing sustainability priorities. “Based on the scores defined by the software, you decide which topics are material and require reporting," Schutte sums.  

Facilitating efficient data collection 

Once material topics are identified, the next phase is data collection. CSRD Suite streamlines this by providing a predefined list of data points aligned with the Omnibus package and ESRS guidelines. Based on the conducted Double Materiality Assessment, the software highlights which data points require attention, ensuring a targeted and efficient data collection process.  

"CSRD compliance can take a lot of time, and CSRD Suite Software cuts down the hours of work tremendously." For more complex data points - like Scope 3 CO2 emissions or biodiversity impacts, the software leverages proxies from Impact Institute's Global Impact Database (GID), accelerating the data-gathering process. 

Engaging auditors early

To enhance transparency and accuracy, the software allows organisations to invite auditors into the process. "It's risky to complete the entire process and only involve auditors at the end of the reporting process. Early engagement helps improve processes and ensures compliance."

Auditors can access a read-only view, providing feedback and insights without altering data. This early engagement ensures that potential issues are addressed proactively, reducing the risk of non-compliance at later stages. 

Saving time and enhancing accuracy 

One of the most significant benefits of CSRD Suite is its ability to save time. It automates the suggestion of IROs, streamlines data collection, and assists in drafting narrative sections of the report. "We can suggest a first scoring for you and even help draft policies using AI, combined with our impact knowledge, Schutte explains" 

Ultimately, CSRD Suite empowers organisations to consolidate all information in one place, facilitating clear decision-making and efficient reporting. The software can generate visual aids, such as materiality matrices, and support the creation of integrated reports that align with broader organisational objectives. 

Given that around 90% of CSRD reporting data points require qualitative narratives, the software utilises advanced AI tools combined with Impact Institute's knowledge to generate policy suggestions, easing the report-writing process. Users can upload additional input such as internal documents to the software, which will then analyse the gaps in data that require more information, complemented with the knowledge of the proprietary impact intelligence. 

By simplifying each step - from initial assessments to final reporting - CSRD Suite stands as an ally for organisations seeking impact-first, efficient and reliable CSRD compliance.

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