63% Firms To Comply With EU Corporate Sustainability Reporting Directive – PwC

Almost two-thirds (63 per cent) of companies said they are very or extremely confident that they will be ready to report under the EU’s new Corporate Sustainability Reporting Directive (CSRD), according to PwC’s inaugural 2024 Global CSRD Survey.

The global survey, of more than 500 senior executives and business professionals, including finance, sustainability and risk leaders, found that the EU directive, which will impact about 50,000 companies, is having a global impact.

More than three-quarters of companies headquartered outside the EU and 74 per cent headquartered within the EU believe CSRD is or will lead to company leadership considering sustainability in decision making to a greater extent. Of respondents from companies headquartered in 38 countries and territories, 75 per cent already plan to report at a consolidated group level, including operations outside the EU.

While the survey results indicated confidence around sustainability reporting, survey respondents cite obstacles to implementation. The single biggest concern listed is data availability and quality.

Only one-fifth of companies due to report in their 2025 financial year have validated the availability and completeness of data for their disclosures.

Global Reporting Leader, PwC Germany, Nadja Picard, said, “as the countdown to CSRD compliance approaches, it is positive to see companies are largely confident that they will be ready to report.

“However, there is still some way to go, with the majority grappling with complex challenges, particularly the quantity and quality of data required, not only for their own operations but across their value chain.”

Picard noted that “as the CSRD essentially requires sustainability reporting to be on par with financial reporting, leading executives are recognising that sustainability information must be available, accurate, and audit-ready: not just on a one-time basis, but annually. The global impact of CSRD shows the importance of getting to a global baseline of reporting standards to reduce complexity and improve comparability.”

Head, ESG, Sustainability and Climate Change, PwC Nigeria, Marilyn Obaisa-Osula said, “our survey shows leading companies are increasingly embedding sustainability into their decision making.

“Through the implementation of CSRD, they are expecting strong environmental benefits, better risk mitigation and improved engagement with stakeholders.”

Obaisa-Osula explained that “we are also seeing companies that are further along in their CSRD journey expecting greater overall benefits from its implementation. In particular, those that are closer to their reporting deadline see much greater financial benefits such as access to capital, revenue growth and cost savings than those due to report in later years.”