The Corporate Sustainability Reporting Directive (CSRD) represents a significant change in the corporate reporting landscape; however, its journey is still far from over. Indeed, with the expansion of thesustainability reporting requirement to more than 3,908 Italian companies by 2026, the legislation requires an unprecedented level of transparency on environmental, social and governance (ESG) data.

While CSRD undoubtedly poses a challenge for companies, it also offers an attractive opportunity to optimize sustainability management, improve operational efficiency and enhance corporate reputation. To address this scenario, it is essential to have digital solutions that ensure structured data collection, ESRS-compliant reporting and effective integration into business processes.

CSRD directive: what changes for 2025?

CSRD introduces a more rigorous regulatory framework than the previous Non-Financial Reporting Directive (NFRD), aiming to standardize sustainability reporting and align it with the needs of investors and stakeholders, including those outside the company.

The number of companies involved expands significantly, from 192 companies currently subject to reporting requirements to 3,908 Italian companies, including SMEs and subsidiaries of multinational groups.

Enterprises that fall under this umbrella are those that meet at least two of the following criteria:

  • More than 250 employees
  • A turnover of more than 50 million euros
  • An asset base of more than 25 million euros

The adoption of ESRS standards, which are more detailed than the previous GRI standards, is another element of change. In addition, CSRD extends the scope of reporting: it requires companies to provide detailed data on ESG performance and also includes the activities of non-EU subsidiaries. Another relevant aspect concerns the monitoring of Scope 3, which includes indirect emissions generated along the entire supply chain. Data collection is to begin in 2025, with submission of the first mandatory sustainability report scheduled for 2026.

The most important and urgent adjustments to transpose the directive

Implementing CSRD requires areliable and compliant infrastructure for collecting and processing ESG data. Companies must ensure that the information collected is complete, verifiable, and aggregated in accordance with ESRS standards, as well as accessible in real time for effective reporting.

It is not enough to collect data-the real challenge is to turn them into tools whose effectiveness can be demonstrated. By integrating sustainability into business processes, operations can be optimized through more efficient resource management, regulatory compliance risks mitigated, and business objectives aligned with ESG standards.

Scope 3 monitoring, in particular, requires a great deal of effort because most of a company’s emissions come not from its own direct operations but from the supply chain of suppliers and partners.

Challenges and opportunities of CSRD: how to deal with them?

The main challenges companies face include comprehensive and extensive data collection across the supply chain, the need for specific expertise in Life Cycle Assessment (LCA) management, and integration with pre-existing business systems. These issues are compounded by resistance to change from staff and employees and the need for clear ESG governance, as well as implementation costs and reporting management.

However, CSRD also represents an important opportunity to use ESG data strategically, improve corporate image, and increase investor confidence. Adopting sustainable practices enables companies to anticipate possible future regulatory obligations, reduce operational and environmental risks, and integrate sustainability with their growth strategy.

The landscape of digital solutions for CSRD compliance

To meet CSRD compliance needs, companies can adopt advanced digital solutions that simplify data collection and processing. SAP offers a suite of tools designed for sustainability management, including SAP Sustainability Control Tower, the platform for real-time monitoring of ESG data and reporting compliant with international standards.

SAP Sustainability Footprint Management, for example, offers the ability to calculate corporate and product carbon footprints in detail, while SAP Environmental Health and Safety is the system for managing environmental compliance and occupational safety. By integrating these solutions, reporting can be automated, data transparency can be ensured, and sustainability management can be optimized.

The market for digital solutions, however, is growing rapidly, with an ever-increasing range of alternatives that can respond in different ways to the specific needs of businesses in the face of particular operational, budget or resource requirements.

Regesta Group helps your company with CSRD compliance

Compliance with the CSRD Directive is not only a regulatory requirement, but a strategic lever for improving business management and market positioning.

We therefore support companies through strategic consulting for CSRD implementation, integration of digital solutions for sustainability, support in ESG data collection and management, and training for internal skills development.

Overcoming the challenges of sustainability reporting today means not only ensuring regulatory compliance, but also building a sustainable competitive advantage for the future.

Want to find out what digital solutions can make your company more sustainable and CSRD-compliant?

Regesta TECH, our specialized company, supports you inimplementing advanced tools to integrate sustainability into business processes.

Contact us and find out how to turn sustainability into a competitive advantage for your business.