B4SI News

B4SI & CSRD: Opportunities for interoperability

The Corporate Sustainability Reporting Directive (CSRD) has pushed companies toward rigorous non-financial reporting, but anecdotal evidence suggests it has also brought about some unintended consequences.

Stemming from our recent member webinar ‘B4SI & CSRD: Measuring twice?’ featuring guest speaker Lonneke Roza, Head of Community Investment at NN Group, three challenges and three opportunities surfaced.

The challenges

Throughout the webinar we heard some recurrent themes from business, which we’ve also picked up through wider conversations with our network over recent months.

  1. Overwhelm and confusion among business
    Many businesses are finding CSRD overwhelming and confusing. Attendees of the webinar expressed feelings of uncertainty and frustration, perceiving CSRD as yet another complex regulation to navigate.
  2. Restrictions on social impact activities
    The dominant focus on Double Materiality Assessments (DMA) is leading to some companies narrowing the scope of their social impact activities and stepping away from some issues altogether. Terms like “community investment” and “social impact” are often less emphasized within a DMA, causing a shift in priorities and budgets.
  3. Lack of specific methodologies or metrics
    While CSRD encourages companies to disclose their impacts, it does not specify the methodologies or metrics required. This ambiguity leaves businesses struggling to determine the best ways to measure and report their social impact, leading to inconsistent and sometimes inadequate reporting practices.

But there was some hope particularly for B4SI members who underpin the management of their programmes and can gather management metrics. This was clearly articulated by Lonneke Roza, from NN Group who articulated their experience, and the need through CSRD to disclose policies. ‘We need to disclose our actions. We need to disclose our progress and targets… and for us, B4SI has helped us to already develop those elements. Of course, it’s still a lot of work…. but [we] already have all the information on Community Investment’.

So, with the challenges, are companies thinking clearly on the opportunities as set out below?

  1. Leverage established frameworks
    NN Group’s experience showcases the value of established frameworks like the B4SI Impact Framework for Community Investment. By utilizing B4SI tools and guidance, NN Group effectively measures and communicates the effectiveness of their programme, whilst ensuring they meet CSRD requirements. Businesses already reporting in line with B4SI will find they have a head start on tackling the new CSRD impact reporting requirements.

  2. Integrate community investment into strategic commitments
    NN Group emphasizes integrating corporate community investment (CCI) into broader strategic commitments rather than treating it as a standalone activity. By embedding CCI into materially important topics like financial inclusion and working conditions, NN Group ensures these activities are recognized and valued in double materiality assessments.
  3. Proactive stakeholder involvement is crucial
    Ensuring key stakeholders are involved in the reporting process is essential. NN Group’s proactive approach in engaging different stakeholders—both internal and external—helps them effectively communicate their social impact and meet CSRD requirements. This engagement is vital to ensure social impact activities are included and properly articulated in double materiality exercises.

There’s much still to navigate as businesses continue grapple with CSRD, and more guidance will evolve over time to fill the gaps. B4SI members are in a good place to respond to the reporting requirements due to the interoperability of the B4SI Framework with certain aspects of CSRD, particular ESRS3.

For further information on how B4SI supports businesses in navigating the corporate social reporting landscape, visit our website or contact us at b4si@corporate-citizenship.com.
For existing B4SI members, please contact your Account Manager to access the recording of our recent webinar.

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