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Smart approach to CSRD reporting: Why SMEs don’t need CSRD software

With the Corporate Sustainability Reporting Directive (CSRD) Many medium-sized companies are faced with the challenge of meeting new sustainability standards. Often, purchasing a comprehensive all-in-one CSRD software seems to be the logical step, but often such a Software is neither necessary nor cost-effective. In the following, we will show why medium-sized companies do not need all-in-one CSRD software and which specific approaches they can use instead to efficiently obtain the CSRD report.

|  November 13, 2024

🕓 Reading time 8 minutes

Carbon Credits

1. Inappropriate functionality: data management or content collection support?

 

What does CSRD software do? Many CSRD software solutions are primarily Data management toolsThey help organize ESG (Environmental, Social, and Governance) data and support the creation of standardized reports. Few all-in-one solutions go beyond this and offer real assistance with content collection. 

Challenge: Create content

However, the biggest challenge in CSRD reporting is usually to Content for the report to even raise.

Tips for data management and reporting:

For many companies, the core standards of the CSRD – E1 (Environment), S1 (Own Workforce), and G1 (Corporate Governance) – are sufficient. Especially in medium-sized companies, much of the information required for S1 and G1 is already available, as they are part of normal human resources and corporate administration.

Tip 1: Manage content with proven programs

This Report contents can then well put together for example with Excel and other already established data management programs.

Tip 2: Set your own priorities

This also offers the advantage to set your own reporting priorities. This allows companies to specifically emphasize their strengths and priorities in sustainability and differentiate themselves from others. This advantage is often lost when using a rigid, all-in-one CSRD software.

Tip 3: Use sample reports

Furthermore, it is useful to Report templates and to the Structures of other companies This makes report generation software unnecessary.

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2. Specific expertise required for emissions calculation in the E1 standard

 

An important component of the CSRD standards is the Calculation of greenhouse gas emissions in the Area E1This must be in accordance with the GHG Protocol (Corporate Accounting and Reporting Standard), which requires specific expertise.

Challenge: Comprehensive internal training required

In terms of greenhouse gas balance, an all-in-one software has the lack of professional support significant restrictions. The internal employee must first receive comprehensive content and technical training. They must be familiar with the accounting requirements themselves in order to select correct emission factors and create a complete greenhouse gas balance using the CSRD software. Furthermore, such software generally does not offer any flexibility for customized solutions for data gaps.

Tip for the greenhouse gas balance:

Companies can collaborate with specialized service providers benefit from the necessary Know-how and certifications for emissions calculation Such experts are often better able to guide companies through the entire emissions assessment process and provide a more reliable and compliant solution.

CO₂ accounting with strong service

We at Green Vision Solutions offer exactly this solution: From the quintessence of our practical experience, our team has developed a clear and TÜV-certified process – and has already successfully applied it in over 200 companies.

With a permanent project sponsor and intuitive data entry software, we will also collect Scope 1, 2 and 3 data together with you – guaranteed to be easy and without any prior knowledge required on your part!

Find out more here

3. Lack of content support: Only technical support instead of professional advice from CSRD Software

What support does CSRD software offer? The support provided by all-in-one software solutions is usually technical in nature and provides little support for the CSRD's technical requirements. Many of these providers cover a wide range of topics—from emissions calculations and biodiversity to water and marine resources—and can therefore no detailed advice on specific reporting requirements offer.

Challenge: Content support for implementation

CSRD reporting often requires specific knowledge that goes beyond the purely technical operation of a software. However, companies need exactly this kind of support to to implement standards correctly.

Tip: Specialized advice

Technical support can often be provided better and more cost-effectively through specialized advice This enables companies to receive support tailored to their individual needs, for example, in preparing their greenhouse gas balance, and to make the reporting process as efficient as possible.

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4. Lack of practical experience with new CSRD software

Many CSRD all-in-one software solutions have been in response to the new regulations developed, which have only been finalized since 2024. They therefore have little practical experience.

Challenge: Lack of practical experience

Companies that rely on solutions that no extensive usage phase yet behind them, risk potentially unreliable results. Especially in an area as complex and specific as emissions calculation, there is a lack of experience to ensure that the software really meets the requirements in practice.

Tip: Specialized advice

By using external Service providers with proven processes Companies can make their reporting more reliable. Collaboration with proven experts also ensures continuous adaptation to changing standards.

5. Conclusion: Efficient alternatives to all-in-one CSRD software for medium-sized businesses

Do companies need CRSD software? Instead of relying on expensive and inflexible all-in-one CSRD software, medium-sized companies can simple tools like Excel, internal resources and targeted, specialized advice efficiently obtain the CSRD-compliant report.

Especially for specific challenges such as data collection and content processing, the use of established internal systems often offers more flexibility. This allows companies to Targeted emphasis on strengths and individual sustainability initiatives and stand out from rigid reporting standards. Reporting can be simplified by Using templates and following industry guidelines be organized cost-effectively and effectively.

The Greenhouse gas balance in the E1 standard However, it remains a challenging task that requires specialized expertise that many software solutions do not adequately cover. In this case, collaboration with specialized service providers with proven and certified processes according to the GHG Protocol makes sense.

CO₂ accounting with strong service

We at Green Vision Solutions offer exactly this solution: From the quintessence of our practical experience, our team has developed a clear and TÜV-certified process – and has already successfully applied it in over 200 companies.

With a permanent project sponsor and intuitive data entry software, we will also collect Scope 1, 2 and 3 data together with you – guaranteed to be easy and without any prior knowledge required on your part!

Find out more here

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ACTING NOW IS WORTH IT

When it comes to sustainability or ecological viability, climate change and human influence on it are central, as in hardly any other area can environmental impacts be measured and documented so well with figures. The indicator here is anthropogenic emissions, i.e., greenhouse gas emissions caused by humans that contribute to global warming.

What does this mean in the context of sustainable business? Every company should keep its greenhouse gas emissions – which are unavoidable in the provision of business services – as low as possible. Sustainable business cannot be achieved at the push of a button, but a continuous optimization process based on ecological indicators is the crucial approach.

By recording the greenhouse gas emissions generated by your company, product, or service, you can identify potential for emission reduction. This enables you to optimize your processes and also save costs. You communicate to your customers and suppliers that you take responsibility for the emissions for which you are responsible. This allows you to build trust and adapt to the requirements of your business partners.

Acting now is worthwhile

Knowing your emissions will prepare you for predictable, more stringent regulatory requirements, such as increasing greenhouse gas emissions taxes or the mandatory implementation of investment-intensive measures. Incorporating this component into your corporate risk management is essential in the long term.

Due to the ongoing social demand for Climate protection, even the European Central Bank under Christine Lagarde has now taken the inevitable course of giving capital preferential treatment to companies that can demonstrably Climate protection The same trend is evident in the capital flow of large asset managers, such as BlackRock. Their chairman, Larry Fink, wrote in a letter to his CEOs that companies that do not address environmental issues seriously and transparently are no longer viable and will therefore no longer be invested in.

Climate protection Therefore, operating your company professionally and verifiably is inevitable in the near future. If your company is among the first to address this situation, you will establish a pioneering effect that prepares you for the foreseeable legal requirements, results in lower capital costs in the long term, and guarantees market advantages!

ACTING NOW IS WORTH IT

When it comes to sustainability or ecological viability, climate change and human influence on it are central, as in hardly any other area can environmental impacts be measured and documented so well with figures. The indicator here is anthropogenic emissions, i.e., greenhouse gas emissions caused by humans that contribute to global warming.

What does this mean in the context of sustainable business? Every company should keep its greenhouse gas emissions – which are unavoidable in the provision of business services – as low as possible. Sustainable business cannot be achieved at the push of a button, but a continuous optimization process based on ecological indicators is the crucial approach.

By recording the greenhouse gas emissions generated by your company, product, or service, you can identify potential for emission reduction. This enables you to optimize your processes and also save costs. You communicate to your customers and suppliers that you take responsibility for the emissions for which you are responsible. This allows you to build trust and adapt to the requirements of your business partners.

Acting now is worthwhile

Knowing your emissions will prepare you for predictable, more stringent regulatory requirements, such as increasing greenhouse gas emissions taxes or the mandatory implementation of investment-intensive measures. Incorporating this component into your corporate risk management is essential in the long term.

Due to the ongoing social demand for Climate protection, even the European Central Bank under Christine Lagarde has now taken the inevitable course of giving capital preferential treatment to companies that can demonstrably Climate protection The same trend is evident in the capital flow of large asset managers, such as BlackRock. Their chairman, Larry Fink, wrote in a letter to his CEOs that companies that do not address environmental issues seriously and transparently are no longer viable and will therefore no longer be invested in.

Climate protection Therefore, operating your company professionally and verifiably is inevitable in the near future. If your company is among the first to address this situation, you will establish a pioneering effect that prepares you for the foreseeable legal requirements, results in lower capital costs in the long term, and guarantees market advantages!

ACTING NOW IS WORTH IT

When it comes to sustainability or ecological viability, climate change and human influence on it are central, as in hardly any other area can environmental impacts be measured and documented so well with figures. The indicator here is anthropogenic emissions, i.e., greenhouse gas emissions caused by humans that contribute to global warming.

What does this mean in the context of sustainable business? Every company should keep its greenhouse gas emissions – which are unavoidable in the provision of business services – as low as possible. Sustainable business cannot be achieved at the push of a button, but a continuous optimization process based on ecological indicators is the crucial approach.

By recording the greenhouse gas emissions generated by your company, product, or service, you can identify potential for emission reduction. This enables you to optimize your processes and also save costs. You communicate to your customers and suppliers that you take responsibility for the emissions for which you are responsible. This allows you to build trust and adapt to the requirements of your business partners.

Acting now is worthwhile

Knowing your emissions will prepare you for predictable, more stringent regulatory requirements, such as increasing greenhouse gas emissions taxes or the mandatory implementation of investment-intensive measures. Incorporating this component into your corporate risk management is essential in the long term.

Due to the ongoing social demand for Climate protection, even the European Central Bank under Christine Lagarde has now taken the inevitable course of giving capital preferential treatment to companies that can demonstrably Climate protection The same trend is evident in the capital flow of large asset managers, such as BlackRock. Their chairman, Larry Fink, wrote in a letter to his CEOs that companies that do not address environmental issues seriously and transparently are no longer viable and will therefore no longer be invested in.

Climate protection Therefore, operating your company professionally and verifiably is inevitable in the near future. If your company is among the first to address this situation, you will establish a pioneering effect that prepares you for the foreseeable legal requirements, results in lower capital costs in the long term, and guarantees market advantages!

ACTING NOW IS WORTH IT

When it comes to sustainability or ecological viability, climate change and human influence on it are central, as in hardly any other area can environmental impacts be measured and documented so well with figures. The indicator here is anthropogenic emissions, i.e., greenhouse gas emissions caused by humans that contribute to global warming.

What does this mean in the context of sustainable business? Every company should keep its greenhouse gas emissions – which are unavoidable in the provision of business services – as low as possible. Sustainable business cannot be achieved at the push of a button, but a continuous optimization process based on ecological indicators is the crucial approach.

By recording the greenhouse gas emissions generated by your company, product, or service, you can identify potential for emission reduction. This enables you to optimize your processes and also save costs. You communicate to your customers and suppliers that you take responsibility for the emissions for which you are responsible. This allows you to build trust and adapt to the requirements of your business partners.

Acting now is worthwhile

Knowing your emissions will prepare you for predictable, more stringent regulatory requirements, such as increasing greenhouse gas emissions taxes or the mandatory implementation of investment-intensive measures. Incorporating this component into your corporate risk management is essential in the long term.

Due to the ongoing social demand for Climate protection, even the European Central Bank under Christine Lagarde has now taken the inevitable course of giving capital preferential treatment to companies that can demonstrably Climate protection The same trend is evident in the capital flow of large asset managers, such as BlackRock. Their chairman, Larry Fink, wrote in a letter to his CEOs that companies that do not address environmental issues seriously and transparently are no longer viable and will therefore no longer be invested in.

Climate protection Therefore, operating your company professionally and verifiably is inevitable in the near future. If your company is among the first to address this situation, you will establish a pioneering effect that prepares you for the foreseeable legal requirements, results in lower capital costs in the long term, and guarantees market advantages!

ACTING NOW IS WORTH IT

When it comes to sustainability or ecological viability, climate change and human influence on it are central, as in hardly any other area can environmental impacts be measured and documented so well with figures. The indicator here is anthropogenic emissions, i.e., greenhouse gas emissions caused by humans that contribute to global warming.

What does this mean in the context of sustainable business? Every company should keep its greenhouse gas emissions – which are unavoidable in the provision of business services – as low as possible. Sustainable business cannot be achieved at the push of a button, but a continuous optimization process based on ecological indicators is the crucial approach.

By recording the greenhouse gas emissions generated by your company, product, or service, you can identify potential for emission reduction. This enables you to optimize your processes and also save costs. You communicate to your customers and suppliers that you take responsibility for the emissions for which you are responsible. This allows you to build trust and adapt to the requirements of your business partners.

Acting now is worthwhile

Knowing your emissions will prepare you for predictable, more stringent regulatory requirements, such as increasing greenhouse gas emissions taxes or the mandatory implementation of investment-intensive measures. Incorporating this component into your corporate risk management is essential in the long term.

Due to the ongoing social demand for Climate protection, even the European Central Bank under Christine Lagarde has now taken the inevitable course of giving capital preferential treatment to companies that can demonstrably Climate protection The same trend is evident in the capital flow of large asset managers, such as BlackRock. Their chairman, Larry Fink, wrote in a letter to his CEOs that companies that do not address environmental issues seriously and transparently are no longer viable and will therefore no longer be invested in.

Climate protection Therefore, operating your company professionally and verifiably is inevitable in the near future. If your company is among the first to address this situation, you will establish a pioneering effect that prepares you for the foreseeable legal requirements, results in lower capital costs in the long term, and guarantees market advantages!

ACTING NOW IS WORTH IT

When it comes to sustainability or ecological viability, climate change and human influence on it are central, as in hardly any other area can environmental impacts be measured and documented so well with figures. The indicator here is anthropogenic emissions, i.e., greenhouse gas emissions caused by humans that contribute to global warming.

What does this mean in the context of sustainable business? Every company should keep its greenhouse gas emissions – which are unavoidable in the provision of business services – as low as possible. Sustainable business cannot be achieved at the push of a button, but a continuous optimization process based on ecological indicators is the crucial approach.

By recording the greenhouse gas emissions generated by your company, product, or service, you can identify potential for emission reduction. This enables you to optimize your processes and also save costs. You communicate to your customers and suppliers that you take responsibility for the emissions for which you are responsible. This allows you to build trust and adapt to the requirements of your business partners.

Acting now is worthwhile

Knowing your emissions will prepare you for predictable, more stringent regulatory requirements, such as increasing greenhouse gas emissions taxes or the mandatory implementation of investment-intensive measures. Incorporating this component into your corporate risk management is essential in the long term.

Due to the ongoing social demand for Climate protection, even the European Central Bank under Christine Lagarde has now taken the inevitable course of giving capital preferential treatment to companies that can demonstrably Climate protection The same trend is evident in the capital flow of large asset managers, such as BlackRock. Their chairman, Larry Fink, wrote in a letter to his CEOs that companies that do not address environmental issues seriously and transparently are no longer viable and will therefore no longer be invested in.

Climate protection Therefore, operating your company professionally and verifiably is inevitable in the near future. If your company is among the first to address this situation, you will establish a pioneering effect that prepares you for the foreseeable legal requirements, results in lower capital costs in the long term, and guarantees market advantages!

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