CSRD gap analysis

Sustainability has become a strategic theme that can no longer be separated from the business landscape. Organisations face increasing pressure from legislation, while investors and customers demand greater transparency. These stakeholders need insight to make economic decisions. Insights relate to the impact organisations have on the environment, society and governance (ESG), the related risks, and the measures taken to manage those risks. At the same time, there is a growing need to demonstrate the opportunities that sustainability can unlock. Sustainability reporting plays a crucial role. It provides clarity on performance, supports strategic decision‑making and strengthens stakeholder trust.

To ensure consistency and comparability, international and European frameworks have been developed, including the following:

• VSME – a practical standard for SMEs, with a modular approach that responds to chain obligations and facilitates financing requests.
• ESRS – part of the CSRD and mandatory for large companies in the EU; calls for comprehensive information on environmental, social impact and governance, including double materiality. For more information on the impact of the Omnibus: Simplifying sustainability reporting.
• IFRS S1 & S2 – international standards of the ISSB, aimed at investors and financial markets, with a focus on consistency and relevance.
• GRI – focuses primarily on broad stakeholder groups such as workers, communities, NGOs and governments. The GRI standards are made up of generic, sector-specific and topic-specific standards. The focus is on impact materiality, which sets GRI apart from investor-focused frameworks.

What are the benefits?

1. Reporting according to recognized standards creates uniformity in the way data is presented. This makes it easier for investors, customers and other stakeholders to compare performance across organizations and provides confidence in the accuracy and completeness of the information.
2. Standardized reporting helps organizations to systematically map their impact, risks and opportunities. This provides valuable insights for creating long-term strategies, identifying areas for improvement and anticipating future regulations or market trends.
3. Transparent communication about sustainability and social responsibility contributes to a positive image. It shows that the organization is committed to corporate responsibility, which can lead to stronger customer loyalty, better investor relationships, and a competitive advantage.

Our approach

At Forvis Mazars, we guide organizations every step of the way towards effective sustainability reporting. Our support includes developing an ESG strategy and conducting a materiality analysis, advising on the appropriate reporting framework and implementing processes, and providing assurance on sustainability information to meet regulatory obligations. In this way, we ensure that organizations are not only compliant but also create value by structurally integrating sustainability into their strategy and business operations.

For many organizations, the question is: "Where do I start?" Very understandable. Sustainability reporting is a complex and relatively new area, even for companies that are already actively reporting. The number of data points required is increasing, and organizations that are still at the beginning need to catch up. A good start requires a structured approach. For example:

• Standards orientation: Dive into the key reporting frameworks and their benefits so you know which one is best for your organization.
• Understanding priorities: Conduct a materiality analysis to determine which sustainability topics are most relevant to your organization.
• Inventory of current situation: Map out where your organization is now and what steps are needed to meet future requirements, for example through a GAP analysis.

By taking these first steps, you will lay a solid foundation for a reporting process that not only complies with regulations, but also contributes to strategic value and future-proofing.