Almost two-thirds (63%) of companies have said they are very or extremely confident 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.
Under CSRD, which has been delayed by two years to June 2026, companies which have a turnover of more than €40m, have balance sheet assets greater than €20m and/or more than 250 employees will need to comply with the directive and report on a variety of ESG metrics, such as carbon emissions, energy consumption and biodiversity.
The survey of more than 500 senior executives and business professionals found preparing to report under the CSRD is leading companies to give more weight to sustainability in business decisions. More than three-quarters (79%) of companies headquartered outside of the EU, and 74% headquartered within the EU, said CSRD is or will lead to company leadership on sustainability.
However, while the survey results indicate confidence around sustainability reporting, survey respondents also cited obstacles to implementation, with data availability and quality the single biggest concern. Only one-fifth of companies due to report in their 2025 financial year have validated the availability and completeness of data for their disclosures.
Meanwhile, less than 60% of all respondents have involved their technology function, although most respondents plan to do so, and most companies were found not to be using specialist tools or technology.
Nadja Picard, global reporting leader for PwC Germany, 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.
“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.”
Implementation obstacles
Despite high levels of confidence, the report revealed that less than half had completed key activities, such as confirmation of reporting options, double materiality assessment and validation of availability of data. Nonetheless, companies that have completed early-stage activities are more likely to be confident in meeting the reporting requirements.
Similarly, while respondents report high confidence on topics that are generally included in existing disclosures such as workforce (75%), business conduct (75%) and climate change (60%), they are far less confident in their ability to meet reporting requirements on less familiar topics such as biodiversity (35%), pollution (43%) and workers in the value chain (44%).
Nevertheless, 76% said CSRD has or will lead to company leadership considering sustainability in decision-making.
PwC UK’s global sustainability leader, Will Jackson-Moore, added: “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.
“We’re 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.”
