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WKN: A2QRSG | ISIN: NO0010936891 | Ticker-Symbol: N/A
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Despite 100% of Businesses Preparing for EU CSRD Compliance, EcoOnline Research Finds 63% of Mid-Market Organisations Struggling with Readiness

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Businesses committed to going beyond compliance to integrate sustainability into operations, increase budgets and drive performance improvement.

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LONDON, Nov. 13, 2024 /PRNewswire/ -- EcoOnline, a leading SaaS provider of safety and sustainability solutions, today launches its 2024 EU CSRD Readiness Report 2024. The report explores how EU Corporate Sustainability Reporting Directive (CSRD) regulations are perceived by mid-market and enterprise businesses, the challenges faced in implementation, and the processes and technologies employed to achieve goals.

Mid-market companies at risk of being underprepared

Although 100% of survey respondents have begun preparing for EU CSRD compliance, enterprise organisations (those with over €1B in annual revenue) are further along in their readiness than their mid-market peers. While 60% of enterprise organisations are 'almost ready' and have the right tools and solutions in place, only 37% of mid-market businesses said the same, and risk being 'left behind' as a result.

Though mid-market businesses have slightly longer to prepare, these organisations need more support with scaling EU CSRD efforts. Top areas cited by mid-market respondents for further support were 1) data collection, 2) greenhouse gas (GHG) accounting, and 3) drafting EU CSRD report outputs, indicating a lack of confidence in tools and processes.

On the road to readiness

Over half of those surveyed are focusing on double materiality assessments as a vital compliance step to identify areas for resource investment. However, EcoOnline's SVP ESG & Sustainability, David Picton comments: "As organisations navigate sustainability's dynamic landscape, it's encouraging to see them focusing on double materiality, but these assessments alone are just the first step in fulfilling complex compliance needs. To meet the EU CSRD deadlines, companies need to act quickly to optimise data collection and report drafting."

Organisations are also tackling CSRD preparedness by:

  • Sustainability being led from the top: The majority (89%) of organisations have senior leadership roles focused on sustainability strategy, with finance, EHS, and operations also involved to meet EU CSRD requirements.
  • Seeking external expertise: 63% of respondents are looking to consultancy support for data collection and reporting to achieve CSRD readiness.
  • Leveraging technology such as SaaS: 94% plan to adopt third-party software for reporting, and 76% are implementing tools for data collection, highlighting that businesses see the value of harnessing both SaaS (software as a service) and external expertise as a key part in achieving compliance.
  • Increasing sustainability spending: 95% plan to boost sustainability investments over the next two years, with focus areas including tools, consulting, staffing, training, and research. Mid-market companies are looking to close the gap on their readiness, with 32% planning to increase spending in the next 12 months, compared to 19% of enterprise respondents.

Thinking beyond compliance

The report found an overwhelming majority of respondents (66% of enterprise and 89% of mid-market) believe the directive will drive meaningful sustainability integration within their operations over the next 3-5 years. In fact, many companies in Europe are already implementing voluntary reporting frameworks beyond mandatory reporting, like the Science Based Targets Initiative (93%), Global Reporting Initiative (99%), or Carbon Disclosure Project (100%).

David Picton also notes, "It is no longer enough to be 'compliant' - now businesses must be proactive and broad-minded about investing in long-term, sustainable, ethical operations to drive meaningful impact. The EU CSRD is a good starting point for this behaviour change, but to achieve lasting benefits and competitive advantage, organisations must view sustainability as fundamental to driving revenue, profit, and business growth."

Need help with your EU CSRD compliance and reporting? Download the 2024 EU CSRD Readiness Report for key insights, attend David Picton's 'Top 5 Insights' webinar on December 4th or learn more about EcoOnline's CSRD Assessment solution.

Methodology
The 2024 EU CSRD Readiness Survey engaged executives, VPs, and directors in ESG, sustainability, finance, operations, EHS, and strategy across companies in Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Norway, Sweden, and the UK.

The respondents represent a sample of over 50,000 companies subject to the EU CSRD, covering firms across various revenue bands, from small and mid-market companies (€10M-€1B in annual revenues) to large enterprise organisations (over €1B in annual revenues). This sample provided a 95% confidence level with a 10% margin of error.

About EcoOnline
EcoOnline delivers innovative environment, health and safety (EHS), chemical management and ESG and sustainability technology solutions to forward-thinking leaders. Founded in 2000 and trusted by over 10,000 brands worldwide, EcoOnline's connected suite of SaaS software enables businesses to protect their people and the planet by ensuring compliance, mitigating risk and streamlining operations. Backed by an unwavering commitment to customer success, EcoOnline's software is powerful yet simple to use - built on decades of real-world expertise, data and insights.

Visit ecoonline.com to immediately and positively impact your workplace safety and sustainability.

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Cision View original content:https://www.prnewswire.co.uk/news-releases/despite-100-of-businesses-preparing-for-eu-csrd-compliance-ecoonline-research-finds-63-of-mid-market-organisations-struggling-with-readiness-302303183.html

© 2024 PR Newswire
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