ESRS Readiness Checklist
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⚙️ Applicability and Awareness
Do you understand the reporting deadlines and frequency for your company's sector?
Have you thoroughly read through the General Requirements and General Disclosures standards and understand the basics of ESRS reporting requirements?
Are you aware of the specific sustainability disclosure requirements applicable to your industry and activities?
🧱 Double Materiality Assessment
Value Chain Analysis
Have you conducted a comprehensive assessment of your company's value chain to identify sustainability impacts?
Do you have a process in place to monitor and evaluate the ESG performance of suppliers and partners regularly?
Drafting potentially material topics
Have you conducted a peer assessment and created an initial list of material topics?
Stakeholder Engagement
Have you mapped out your external stakeholders?
Have you mapped out your internal stakeholders?
Have you defined the methods for involving stakeholders?
Have you set up initial dialogues with stakeholders?
Assessing the materiality
Based on dialogue feedback, have you created a list of topics to be assessed?
Have you assessed the impact of your business on each topic?
Have you defined risks and opportunities for each topic?
Have you assessed the materiality of the topics based on scale, scope, irremediability, and likelihood?
💻 Implementation
Policy development
Have you developed policies that should guide the work on material topics?
Setting KPI's and targets
Have you defined targets with milestones and deadlines for each material topic?
Have you defined actions needed to reach the defined targets?
Stakeholder Engagement
Have you set up a working group and assigned actions to owners?
📋 Data Collection
Gap Analysis
Have you conducted a gap analysis to identify material issues vs. ESRS data points and identified gaps in reporting?
Have you addressed data gaps or data quality issues?
Data Collection
Do you have a robust data collection process for ESG data across your operations and supply chain?
Have you defined and implemented data collection standards, quality assurance measures, and data governance procedures?
Data analysis
Do you utilize data analytics tools to extract meaningful insights and track sustainability progress?
✅ External Assurance
Have you conducted a third-party assurance of the sustainability reporting processes?
📣 Communication and Engagement
Is there a communication plan in place to effectively communicate sustainability performance to stakeholders?
Is engagement with key stakeholders ongoing to address ESG concerns?
📈 Continuous Improvement and Upskilling
Is a continuous improvement process established for sustainability reporting practices?
Does ongoing training and education on sustainability reporting principles and ESRS requirements occur for employees?
Is there proactive monitoring of emerging sustainability trends and regulatory developments for ongoing compliance?
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3
High
priority action items
Priority
: High
Have you conducted a comprehensive assessment of your company's value chain to identify sustainability impacts?
Have you conducted a comprehensive assessment of your company's value chain to identify sustainability impacts?
Have you conducted a comprehensive assessment of your company's value chain to identify sustainability impacts?
Gap
: Lack of a comprehensive value chain assessment for sustainability impacts.
Recommendation:
Initiate a thorough value chain analysis to identify sustainability impacts. We also recommend contacting our team to receive expert consultation and guidance on this specific section to ensure comprehensive understanding.
Resources:
https://online.hbs.edu/blog/post/what-is-value-chain-analysis
Priority
: High
Do you have a process in place to monitor and evaluate the ESG performance of suppliers and partners regularly?
Do you have a process in place to monitor and evaluate the ESG performance of suppliers and partners regularly?
Do you have a process in place to monitor and evaluate the ESG performance of suppliers and partners regularly?
Gap
: Absence of a regular ESG performance monitoring process for suppliers and partners.
Recommendation:
Establish a systematic process for monitoring and evaluating ESG performance.
Resources:
https://www.supplyshift.net/blog/supplier-sustainability-assessment-where-do-i-start/
Priority
: High
Have you mapped out your external stakeholders?
Have you mapped out your external stakeholders?
Have you mapped out your external stakeholders?
Gap
: No mapping of external stakeholders.
Recommendation:
Initiate the mapping of external stakeholders to engage effectively. We also recommend contacting our team to receive expert consultation and guidance on this specific section to ensure comprehensive understanding.
Resources:
https://www.mural.co/blog/stakeholder-mapping
Priority
: High
Have you mapped out your internal stakeholders?
Have you mapped out your internal stakeholders?
Have you mapped out your internal stakeholders?
Gap
: No mapping of internal stakeholders.
Recommendation:
Begin mapping internal stakeholders to ensure effective engagement. We also recommend contacting our team to receive expert consultation and guidance on this specific section to ensure comprehensive understanding and implementation.
Resources:
https://www.mural.co/blog/stakeholder-mapping
Priority
: High
Have you defined the methods for involving stakeholders?
Have you defined the methods for involving stakeholders?
Have you defined the methods for involving stakeholders?
Gap
: Lack of defined methods for stakeholder involvement.
Recommendation:
Establish clear methods for involving stakeholders in the assessment process. We also recommend contacting our team to receive expert consultation and guidance on this specific section to ensure comprehensive understanding and implementation.
Resources:
https://www.accountability.org/standards/aa1000-stakeholder-engagement-standard/
Priority
: High
Have you set up initial dialogues with stakeholders?
Have you set up initial dialogues with stakeholders?
Have you set up initial dialogues with stakeholders?
Gap
: Absence of initial dialogues with stakeholders.
Recommendation:
Initiate dialogues with relevant stakeholders. We also recommend contacting our team to receive expert consultation and guidance on this specific section to ensure comprehensive understanding and implementation.
Resources:
https://www.accountability.org/standards/aa1000-stakeholder-engagement-standard/
Priority
: High
Based on dialogue feedback, have you created a list of topics to be assessed?
Based on dialogue feedback, have you created a list of topics to be assessed?
Based on dialogue feedback, have you created a list of topics to be assessed?
Gap
: Lack of a list of topics based on dialogue feedback.
Recommendation:
Create a list of topics derived from dialogue feedback. We also recommend contacting our team to receive expert consultation and guidance on this specific section to ensure comprehensive understanding and implementation.
Resources:
https://www.accountability.org/standards/aa1000-stakeholder-engagement-standard/
https://www2.deloitte.com/content/dam/Deloitte/nl/Documents/risk/deloitte-nl-risk-double-materiality.pdf
Priority
: High
Have you assessed the impact of your business on each topic?
Have you assessed the impact of your business on each topic?
Have you assessed the impact of your business on each topic?
Gap
: Incomplete assessment of the impact of the business on each topic.
Recommendation:
Conduct a thorough assessment of the business impact on each identified topic. We also recommend contacting our team to receive expert consultation and guidance on this specific section to ensure comprehensive understanding and implementation.
Resources:
https://www2.deloitte.com/content/dam/Deloitte/nl/Documents/risk/deloitte-nl-risk-double-materiality.pdf
https://www.efrag.org/Assets/Download?assetUrl=%2Fsites%2Fwebpublishing%2FSiteAssets%2F07.%2520Draft%2520ESRS%25202%2520General%2520disclsoures%2520November%25202022.pdf
https://www.efrag.org/Assets/Download?assetUrl=/sites/webpublishing/SiteAssets/Appendix%202.6%20-%20WP%20on%20draft%20ESRG%201.pdf
Priority
: High
Have you defined risks and opportunities for each topic?
Have you defined risks and opportunities for each topic?
Have you defined risks and opportunities for each topic?
Gap
: Lack of defined risks and opportunities for each identified topic.
Recommendation:
Define risks and opportunities associated with each topic. We also recommend contacting our team to receive expert consultation and guidance on this specific section to ensure comprehensive understanding and implementation.
Resources:
https://www.efrag.org/Assets/Download?assetUrl=%2Fsites%2Fwebpublishing%2FSiteAssets%2F07.%2520Draft%2520ESRS%25202%2520General%2520disclsoures%2520November%25202022.pdf
https://www.efrag.org/Assets/Download?assetUrl=/sites/webpublishing/SiteAssets/Appendix%202.6%20-%20WP%20on%20draft%20ESRG%201.pdf
Priority
: High
Have you assessed the materiality of the topics based on scale, scope, irremediability, and likelihood?
Have you assessed the materiality of the topics based on scale, scope, irremediability, and likelihood?
Have you assessed the materiality of the topics based on scale, scope, irremediability, and likelihood?
Gap
: Incomplete assessment of materiality based on scale, scope, irremediability, and likelihood. We also recommend contacting our team to receive expert consultation and guidance on this specific section to ensure comprehensive understanding and implementation
Recommendation:
Assess materiality thoroughly using these criteria.
Resources:
https://www.efrag.org/Assets/Download?assetUrl=/sites/webpublishing/SiteAssets/Appendix%202.6%20-%20WP%20on%20draft%20ESRG%201.pdf
https://www2.deloitte.com/content/dam/Deloitte/nl/Documents/risk/deloitte-nl-risk-double-materiality.pdf
Priority
: High
Have you defined targets with milestones and deadlines for each material topic?
Have you defined targets with milestones and deadlines for each material topic?
Have you defined targets with milestones and deadlines for each material topic?
Gap
: Lack of defined targets with milestones and deadlines for material topics.
Recommendation:
Define clear targets with specific milestones and deadlines.
Resources:
https://www.efrag.org/Assets/Download?assetUrl=/sites/webpublishing/SiteAssets/Appendix%202.4%20-%20WP%20on%20draft%20ESRS%205.pdf
https://blog.nexioprojects.com/understanding-the-csrd-requirements-part-2
Priority
: High
Have you defined actions needed to reach the defined targets?
Have you defined actions needed to reach the defined targets?
Have you defined actions needed to reach the defined targets?
Gap
: Lack of defined actions needed to achieve targets.
Recommendation:
Define specific actions required to attain the set targets. We also recommend contacting our team to receive expert consultation and guidance on this specific section to ensure comprehensive understanding and implementation.
Resources:
https://www.efrag.org/Assets/Download?assetUrl=/sites/webpublishing/SiteAssets/Appendix%202.4%20-%20WP%20on%20draft%20ESRS%205.pdf
https://blog.nexioprojects.com/understanding-the-csrd-requirements-part-2
Priority
: High
Have you conducted a gap analysis to identify material issues vs. ESRS data points and identified gaps in reporting?
Have you conducted a gap analysis to identify material issues vs. ESRS data points and identified gaps in reporting?
Have you conducted a gap analysis to identify material issues vs. ESRS data points and identified gaps in reporting?
Gap
: Lack of a gap analysis to identify material issues and reporting gaps.
Recommendation:
Perform a comprehensive gap analysis to identify and address reporting discrepancies. We also recommend contacting our team to receive expert consultation and guidance on this specific section to ensure comprehensive understanding and implementation.
Resources:
https://efrag.sharefile.com/share/view/s1a12c193b86d406e90b1bcd7b6bb8f6f/fo37c90b-9d9b-4432-a76b-27760cfcc01b
Priority
: High
Have you addressed data gaps or data quality issues?
Have you addressed data gaps or data quality issues?
Have you addressed data gaps or data quality issues?
Gap
: Lack of addressing data gaps or data quality issues.
Recommendation:
Address identified data gaps and improve data quality.
Resources:
https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2021/10/closing-the-disconnect-in-esg-data.pdf
Priority
: High
Is engagement with key stakeholders ongoing to address ESG concerns?
Is engagement with key stakeholders ongoing to address ESG concerns?
Is engagement with key stakeholders ongoing to address ESG concerns?
Gap
: Lack of ongoing engagement with key stakeholders to address ESG concerns.
Recommendation:
Maintain continuous engagement with key stakeholders to address ESG issues.
Resources:
https://sustenuto.com/insights/the-five-foundations-of-sustainability-communications/
3
Medium
priority action items
Priority
: Medium
Do you understand the reporting deadlines and frequency for your company's sector?
Have you thoroughly read through the General Requirements and General Disclosures standards and understand the basics of ESRS reporting requirements?
Have you thoroughly read through the General Requirements and General Disclosures standards and understand the basics of ESRS reporting requirements?
Gap
: Limited understanding of General Requirements and ESRS reporting basics.
Recommendation:
Review available resources and attend informative sessions to gain a better understanding. We also recommend contacting our team to receive expert consultation and guidance on this specific section to ensure comprehensive understanding.
Resources:
https://youtu.be/IWtruaU-MNo?si=vxlUTx_YroGMV1e2
https://youtu.be/a1pdAO62bH0?si=Ab6ho4pe-AHGnSoM
https://youtu.be/es8n3QA19pk?si=bKiLPW9EGnGjS3JD
https://youtu.be/G_uCqFXK7qU?si=PTcfcgNKz2ncFfp9
Priority
: Medium
Are you aware of the specific sustainability disclosure requirements applicable to your industry and activities?
Are you aware of the specific sustainability disclosure requirements applicable to your industry and activities?
Are you aware of the specific sustainability disclosure requirements applicable to your industry and activities?
Gap
: Lack of awareness regarding industry-specific disclosure requirements.
Recommendation:
Explore industry-based disclosure requirements provided by regulatory bodies. We also recommend contacting our team to receive expert consultation and guidance on this specific section to ensure comprehensive understanding.
Resources:
https://www.ifrs.org/projects/completed-projects/2023/climate-related-disclosures/appendix-b-industry-based-disclosure-requirements/
Priority
: Medium
Have you conducted a peer assessment and created an initial list of material topics?
Have you conducted a peer assessment and created an initial list of material topics?
Have you conducted a peer assessment and created an initial list of material topics?
Gap
: Lack of a peer assessment and initial list of material topics.
Recommendation:
Conduct a peer assessment and create an initial list of potential material topics. We also recommend contacting our team to receive expert consultation and guidance on this specific section to ensure comprehensive understanding.
Resources:
https://www.msci.com/our-solutions/esg-investing/esg-industry-materiality-map
Priority
: Medium
Have you developed policies that should guide the work on material topics?
Have you developed policies that should guide the work on material topics?
Have you developed policies that should guide the work on material topics?
Gap
: Absence of policies guiding the work on material topics.
Recommendation:
Develop policies to guide the work on material topics. We also recommend contacting our team to receive expert consultation and guidance on this specific section to ensure comprehensive understanding and implementation.
Resources:
https://legal.thomsonreuters.com/en/insights/articles/corporate-sustainability-policy-as-part-of-your-esg-agenda
https://www.efrag.org/Assets/Download?assetUrl=/sites/webpublishing/SiteAssets/Appendix%202.4%20-%20WP%20on%20draft%20ESRS%205.pdf
Priority
: Medium
Have you set up a working group and assigned actions to owners?
Have you set up a working group and assigned actions to owners?
Have you set up a working group and assigned actions to owners?
Gap
: Absence of a working group and assigned responsibilities.
Recommendation:
Establish a working group and allocate responsibilities.
Resources:
https://greenomy.io/blog/Form-Strong-Cross-Functional-ESG-Reporting-Team-Steps-Roles-responsibilities
Priority
: Medium
Do you have a robust data collection process for ESG data across your operations and supply chain?
Do you have a robust data collection process for ESG data across your operations and supply chain?
Do you have a robust data collection process for ESG data across your operations and supply chain?
Gap
: Lack of a robust data collection process for ESG data.
Recommendation:
Establish a robust data collection process across operations and the supply chain.
Resources:
https://www.pwc.com/us/en/services/esg/library/esg-data-collection-reporting.html
Priority
: Medium
Have you defined and implemented data collection standards, quality assurance measures, and data governance procedures?
Have you defined and implemented data collection standards, quality assurance measures, and data governance procedures?
Have you defined and implemented data collection standards, quality assurance measures, and data governance procedures?
Gap
: Absence of defined data collection standards, quality assurance measures, and data governance procedures.
Recommendation:
Define and implement data collection standards, quality measures, and governance procedures.
Resources:
https://www.pwc.com/us/en/services/esg/library/esg-data-collection-reporting.html
Priority
: Medium
Have you conducted a third-party assurance of the sustainability reporting processes?
Have you conducted a third-party assurance of the sustainability reporting processes?
Have you conducted a third-party assurance of the sustainability reporting processes?
Gap
: No third-party assurance of sustainability reporting processes conducted.
Recommendation:
Consider conducting third-party assurance for enhanced credibility.
Resources:
https://sustainabilityknowledgegroup.com/the-value-of-external-assurance/
https://www.accountancyeurope.eu/wp-content/uploads/2022/12/220401-Sustainability-assurance-under-the-CSRD-1-1.pdf
Priority
: Medium
Is there a communication plan in place to effectively communicate sustainability performance to stakeholders?
Is there a communication plan in place to effectively communicate sustainability performance to stakeholders?
Is there a communication plan in place to effectively communicate sustainability performance to stakeholders?
Gap
: Absence of a communication plan for sustainability performance.
Recommendation:
Develop a communication plan for effective stakeholder engagement.
Resources:
https://sustenuto.com/insights/the-five-foundations-of-sustainability-communications/
Priority
: Medium
Is a continuous improvement process established for sustainability reporting practices?
Is a continuous improvement process established for sustainability reporting practices?
Is a continuous improvement process established for sustainability reporting practices?
Gap
: Absence of a continuous improvement process for sustainability reporting.
Recommendation:
Establish a continuous improvement process for sustainability reporting.
Resources:
https://www.mdpi.com/2199-8531/5/3/49
Priority
: Medium
Does ongoing training and education on sustainability reporting principles and ESRS requirements occur for employees?
Have you conducted a comprehensive assessment of your company's value chain to identify sustainability impacts?
Have you conducted a comprehensive assessment of your company's value chain to identify sustainability impacts?
Gap
: Lack of ongoing training and education on sustainability reporting principles and ESRS requirements.
Recommendation:
Provide ongoing training and education for employees on these topics.
Resources:
https://www.tunley-environmental.com/en/insights/5-key-benefits-of-sustainability-training
Priority
: Medium
Is there proactive monitoring of emerging sustainability trends and regulatory developments for ongoing compliance?
Does ongoing training and education on sustainability reporting principles and ESRS requirements occur for employees?
Does ongoing training and education on sustainability reporting principles and ESRS requirements occur for employees?
Gap
: Lack of proactive monitoring for emerging sustainability trends and regulatory developments.
Recommendation:
Establish a process for ongoing monitoring of emerging sustainability trends and regulatory changes to ensure continuous compliance.
Resources:
https://www.imd.org/ibyimd/2024-trends/sustainability-trends-shaping-corporate-priorities-in-2024/
3
Low
priority action items
Priority
: Low
Do you understand the reporting deadlines and frequency for your company's sector?
Do you understand the reporting deadlines and frequency for your company's sector?
Do you understand the reporting deadlines and frequency for your company's sector?
Gap
: Lack of understanding regarding reporting deadlines and frequency.
Recommendation:
Conduct a thorough review of sector-specific reporting timelines and requirements.
Resources:
https://www.brightest.io/csrd-corporate-sustainability-reporting-directive
Priority
: Low
Do you utilize data analytics tools to extract meaningful insights and track sustainability progress?
Do you utilize data analytics tools to extract meaningful insights and track sustainability progress?
Do you utilize data analytics tools to extract meaningful insights and track sustainability progress?
Gap
: Lack of utilization of data analytics tools for sustainability progress tracking.
Recommendation:
Implement data analytics tools for extracting insights and tracking sustainability progress. We also recommend contacting our team to receive expert consultation and guidance on this specific section to ensure comprehensive understanding and implementation.
Resources:
https://www.linkedin.com/pulse/esg-reporting-tools-data-your-fingertips-banetti-inc/
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