Insights from the Corporate Disclosures Conference 2024

Today, Agendi’s Helena Walsh and C. Victoria Tetzlaff proudly represented Agendi at the Corporate Disclosures Conference 2024. It has been an insightful day, exploring the evolving landscape of corporate sustainability reporting and hearing directly from regulators, standard setters, and industry leaders about both the challenges and successes they are experiencing.

Key Takeaways

CSRD & CSDDD in Focus
One of the central themes of the day was the dynamic between the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD). While the CSRD establishes an obligation to report, the CSDDD emphasizes an obligation to act. However, significant challenges remain, particularly when it comes to aligning the definitions of supply chain versus value chain reporting. Clear transition plans and further regulatory alignment will be vital to ensure these frameworks have a meaningful impact.

Omnibus Proposals
The EU’s omnibus approach was another hot topic, as it seeks to harmonize sustainability-related legislation across various frameworks. This includes aligning definitions under the EU Taxonomy, the Carbon Border Adjustment Mechanism (CBAM), and regulations addressing forced labor and deforestation. Despite the close alignment intended within the CSRD and CSDDD, varying interpretations of value versus supply chain reporting are creating additional complexities, especially for businesses that operate in multiple jurisdictions.

Materiality Challenges
Discussions also delved into the ongoing debate over “most material” versus “material” topics. Companies are increasingly recognizing that materiality is not static, and there remains an important role for voluntary disclosures to provide a broader view of sustainability strategy. This evolving understanding is driving organizations to continually reassess and update their approaches to reporting.

The Role of Technology in Data Management Architectures (DMAs)
While Excel remains the tool of choice for developing DMAs, there is a growing consensus on the need for more advanced technology. Current solutions are often not sufficient to support the maintenance and data governance requirements on a year-to-year basis. Early-phase CSRD reporters have noted that existing technologies sometimes fall short in fully supporting their DMA implementations, highlighting a critical area for future development.

Data Governance & Internal Controls
Ensuring consistency across diverse data sources and preparing for assurance under new standards were also identified as key pain points. Organizations are grappling with the need to harmonize data formats and enhance internal controls to meet evolving regulatory expectations.

External Assurance
A notable takeaway from the conference was the perspective on external assurance. Auditors are increasingly seen not just as external checkers but as integral partners in the process. Involving auditors early in the methodology sign-off for your DMA can add an extra layer of control and credibility to your sustainability reporting.

Looking Ahead
The conference has underscored the growing complexity of sustainability reporting and the need for pragmatic, well-integrated solutions. It has been inspiring to learn how companies are addressing these challenges, and at Agendi, we’re excited to compare methodologies and share insights from our CSRD support offering. Our goal is to help clients and partners navigate this fast-changing landscape with confidence and clarity.

Stay tuned for more insights and updates as we continue to support the evolution of corporate sustainability reporting.