Could it be time to hire a CSRD consultant?
If you’re a sustainability manager, CSRD is probably a big topic on your to-do list for the coming period. We really do feel your pain here, but Dazzle has got your back! In this article, we’ll discuss how hiring a CSRD consultant can help you navigate this new legislation. First though, let’s recap about what exactly the CSRD is, and why it’s so important for your organization.
The CSRD, or, ‘the Corporate Sustainability Reporting Directive’, is a piece of legislation introduced by the EU which became active in January 2023. According to the European Commission, it ‘modernizes and strengthens the rules concerning the social and environmental information that companies have to report.’
Basically, the CSRD requires thousands of EU-based companies to start reporting on sustainability. Which we think is really fantastic by the way, even if it does create a significant pile of complicated work for lots of people!
Speaking of which, not just any old reporting will do under CSRD requirements. On one side, companies have to report on how sustainability issues affect corporate performance, and on the other, how business activities impact society and the environment. And they have to report all of this according to European Sustainability Reporting Standards (ESRS). Piece of cake, right?
These new regulations will affect over 42,500 companies headquartered in the EU, and even a few thousand with headquarters outside. Larger companies are already (trying!) to apply these new rules in 2024, in preparation for their CSRD-ready 2025 reports. In the coming years, the new rules will also gradually apply to smaller companies.
When the rules apply to your own organization and you don’t comply, there can be some pretty serious consequences. Financial fines, reputational damage, and in France, even jail time! On the more positive side, if you do comply, the CSRD can be used as a motivation and guide. You can use it to bring your sustainability performance to the next level.
So really, the CSRD couldn’t be more important for the organizations it affects. But, how to make sense of it all? How can you know if your company is one of those companies? Or know when and how the CSRD will apply to you?
Well, we did mention hiring a CSRD consultant at the start of this article, didn’t we?
But what exactly is that, and how might it be helpful?
In a nutshell, a CSRD consultant is a professional who specializes in assisting businesses with the CSRD.
CSRD consultants are experts in regulatory compliance, corporate reporting, and sustainability in general. This allows them to guide organizations through the entire CSRD process.
From collecting and analyzing important data, to reporting according to ESRS standards, CSRD consultants know how it’s done. If you decide to hire a CSRD consultant, they will assume several key responsibilities in order to make the CSRD process as streamlined as possible for your organization.
Complying with the CSRD is no easy task. But believe us when we tell you, a CSRD consultant can make the task a whole lot easier! Allowing you to put more time and focus into other important areas. Here’s how they can help:
We mentioned earlier that the CSRD requires companies to report on how sustainability issues affect corporate performance, as well as how business activities impact society and the environment. What we’re basically referring to here is what’s known as ‘Double Materiality’. A level of reporting that covers both sides of the sustainability coin, so to speak.
To help you ensure that you’re reporting both sides correctly, a CSRD consultant will conduct a double materiality assessment. Through this, they will identify and prioritize any issues — on either side of the coin — that are relevant to your company.
Well there’s no use identifying all these issues without learning more about them is there? Thankfully, CSRD consultants can help out there too.
They will help you collect comprehensive, accurate sustainability data, that relates to any issues identified in the double materiality assessment. They will then assist in analyzing this data to identify what should be included in the final report. (By gathering and analyzing this data, you will also likely identify key ways to improve your company’s sustainability/overall performance).
Most people probably don’t love writing comprehensive sustainability reports in accordance with strict ESRS standards. But you’ll be happy to hear; CSRD consultants do!
Without stress, a consultant will carefully prepare a detailed and compliant report, ensuring the final document is transparent, credible, and ready to publish.
Once your report is published, after a short (always too short) celebration, the job just starts all over again! Already, it’s time to start thinking about next year’s report.
Of course, a CSRD consultant can help you with that too, but if you prefer, they can train your existing employees in all things CSRD. This way, you’ll be left with the internal capacity to deal with CSRD issues moving forward.
And that’s just one of the many potential benefits that CSRD consultants can offer.
In fact, hiring a CSRD consultant can help your company thrive in the present, while enhancing resilience in the face of an uncertain future.
Staying in the present, the most pressing benefit that CSRD consultants can deliver is to simply ensure compliance with the CSRD.
By hiring a consultant, you can guarantee that you don’t run into any fines or legal issues. (As we’ve seen already, if you’re in France, hiring a CSRD consultant might even save you from going to jail!)
It is of course possible to create a high-quality, compliant sustainability report without the help of a consultant. But bringing a consultant on board helps to take the pressure off. They will ensure that everything in the report is accurate, transparent, and in line with ESRS standards. This enhanced credibility can also help to build trust with investors, customers, employees, and regulators.
By conducting a double materiality assessment, and collecting and analyzing key data, it is almost inevitable that your CSRD consultant will also identify inefficiencies and areas for improvement throughout your business operations.
It’s likely that areas such as energy use, waste management, or resource consumption can be improved. A consultant can then help you develop a tailored strategy to implement these improvements.
Overall this will surely lead to improved operational efficiency and reduced costs. While actually implementing the improvements also demonstrates a strong commitment to sustainability. Not a bad thing for your brand reputation we’d imagine!?
With an eye on the future, hiring a CSRD consultant can help you stay a few steps ahead of the ever-changing sustainability landscape.
While you focus on the more exciting aspects of sustainability, your consultant can keep an eye on emerging trends and regulations. They can identify potential risks related to evolving sustainability standards and best practices, and help you mitigate these risks.
Overall, a CSRD consultant can help to instill long-term resilience and adaptability into the core of your sustainability strategy.
But to get the most out of your consultant, it’s crucial that you find the right fit.
So you’ve decided to hire a CSRD consultant. We must say, we think you’ve made a fantastic decision. But this is only the first decision in a series of very important ones. To make sure you hire the best consultant for your business, you should consider the following key factors:
Before you start the search for your perfect consultant, you should first carefully decide what it is you want them to achieve. Are you looking for help with writing your sustainability report specifically? Do you want them to solely focus on the double materiality assessment? Or maybe you require assistance with the entire CSRD process? By determining the exact scope of work required first, you’ll be in a better place to find the best person for the job.
Once you’ve identified some potential candidates, it’s time to compare their expertise. At a minimum, you should be looking for a consultant with proven experience in CSRD and sustainability reporting. Don’t be afraid to ask for references from past clients, as of course you’ll be wanting somebody with a proven track record.
Technical expertise is essential for obvious reasons, but it’s not everything. You’re going to need a consultant who can communicate and collaborate effectively. That means an ability to communicate complex sustainability concepts clearly and effectively to various stakeholders, and also an ability to integrate seamlessly with your team.
Going beyond mere collaboration, ideally you’ll want a consultant that buys into your whole company ethos. If they are well-aligned with your company culture, there is much higher potential for a successful long-term partnership.
Some consultants might have a ‘one-size-fits-all’ approach. But really, what you should look for is a consultant who is willing and capable to tailor their approach to your specific business needs. Again, this makes long-term success much more likely.
Unfortunately, money doesn’t grow on trees, no matter how many we plant (we should definitely still keep planting them though!). So when choosing your perfect CSRD consultant, you will also have to consider your budget. Make sure to thoroughly assess the overall value each candidate will bring to your company. By carefully taking all of the above factors into consideration, it is definitely possible to find a great fit that also makes financial sense.
Speaking of value, one possible way to really get the most out of your budget could be to choose a freelance CSRD consultant.
But what does that mean exactly?
A freelance CSRD consultant is an independent CSRD expert. They can assist you with all things CSRD, but they are not employed full-time by a consulting firm.
Freelance CSRD consultants offer their services directly to various clients on a contract basis. If you choose to hire a freelance consultant, it can offer several important advantages.
Cost-effective, flexible, adaptable. What’s not to like? Freelance CSRD consultants can offer all these benefits:
When you hire a standard CSRD consultant, you will usually be dealing with a consultancy firm with very high overheads and profit margins. Freelancers are typically more cost-effective as you can pay for their time and expertise without these huge overheads.
Meaning you can hire a consultant with just as much knowledge and expertise, but at a fraction of the cost.
If you’re in urgent need of CSRD-related help (who isn’t these days!?), hiring a freelance CSRD consultant could be the perfect solution.
Freelancers can be onboarded more quickly, and adapt to changes more readily compared to consultants tied to larger firms. If you need a consultant to start this week, that wouldn’t be a problem when hiring a freelancer. Then, if the project scope suddenly needs to change in a month’s time, a quality freelance consultant can readily adapt their services.
Freelancers are also usually motivated to deliver quality results efficiently, to build their personal brand and secure future projects. So you know for sure when working with a freelancer, that they care just as much about the results as you do. Their brand’s reputation depends on it.
Freelance consultants typically work with fewer clients at one time compared to regular consultants. This allows them to dedicate more attention and resources to each project, allowing for a deeper understanding of the particular project needs.
If you hire a freelance CSRD consultant, you can expect a highly customized and responsive service, personalized for your company’s unique situation.
If you think that’s something that could really benefit your company, Dazzle can find you the perfect solution today. And we really do mean, today!
If you’re looking for a freelance CSRD consultant with a guaranteed track record, and you need them now, you’re in the right place.
Dazzle is a platform that offers the world’s best sustainability freelancers on-demand. All of our freelance sustainability and ESG experts are carefully pre-screened, as we only accept the best. You can work with our freelancers on a project-based, on-demand, or interim basis, and we have several CSRD consultants with extensive experience for you to choose from.
If you need help with CSRD and want to find the perfect fit ASAP, please don’t hesitate to contact us today.
It will be our pleasure to help both you and your organization work towards CSRD compliancy, and beyond!