Defining CSRD Benchmarks: An AI-Driven Global Analysis
This Nasdaq report provides a global view into company readiness for the Corporate Sustainability and Reporting Directive (CSRD). The goal is to uncover trends across sectors, geographic regions, and market cap bands to help companies understand CSRD readiness and compare efforts with peers.
Ready or Not… Here Comes CSRD
Beginning on January 1, 2025, many large companies will be required to report to the EU’s CSRD based on the 2024 financial year. With that in mind, we leveraged Nasdaq’s AI-powered research and benchmarking solution, Nasdaq Sustainable Lens®, to analyze 8.7K global companies, 161K+ company documents, and 8.3M+ CSRD disclosure requirement data points.[1] As you assess your value chain reporting capabilities and evaluate measurement systems, consider reviewing the data and analysis provided in this report.
Key Takeaways
1. Supply chain heavy sectors are leading the sprint to CSRD readiness. CSRD readiness across all observed companies stands at 12.9%, with Basic Materials, Consumer Non-Cyclicals, and Industrials sectors leading the sprint to readiness.
2. First required reporters in Europe make early strides. European regions show the highest readiness across more than 2,000 companies, demonstrating early preparation for CSRD requirements.
3. Global sector benchmarks provide an early look at possible material areas. Companies may be able to use sector aggregate views in existing sustainability reports as a guide to pressure test their double materiality assessments.
4. Direct control areas show promising readiness. Companies show higher readiness in areas they directly control, including G1 Business Conduct, S1 Own Workforce, and E1 Climate Change.
5. There is an opportunity to lead with actions, not just words. Meeting ESRS granular requirements isn’t just about establishing strong governance structures and social and climate policies, it also means establishing clear measurements, actions, and targets.
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[1] Annual Reports, Sustainability Reports, Climate Reports, Social Documents, SEC filings, Policy documents, Governance documents, CDP Reports, sustainability data tables & framework indices as of 11/08/2024
