Case Study

Corporate Sustainability Reporting

How SOVERN transformed Directive (EU) 2022/2464 into a structured reporting framework

Overview

Transforming CSRD into a Structured Reporting Framework

The Corporate Sustainability Reporting Directive (CSRD) represents a significant expansion of sustainability reporting requirements for companies operating in the EU. It introduces detailed reporting standards across environmental, social, and governance topics, requiring companies to disclose their impacts, risks, and opportunities related to sustainability.

Implementing CSRD presents significant challenges for companies due to its comprehensive scope, detailed data requirements, and need for assurance. SOVERN was tasked with transforming this complex directive into a structured reporting framework that would streamline compliance while ensuring accuracy and completeness.

Project Highlights

500+

Data points standardized

60%

Reduction in reporting effort

100%

ESRS compliance

The Challenge

Complex Requirements, Diverse Data Sources

Implementing CSRD presented several significant challenges that needed to be addressed

Comprehensive Reporting Standards

CSRD introduces the European Sustainability Reporting Standards (ESRS), which include over 500 data points across environmental, social, and governance topics.

Key Challenges

  • Understanding and interpreting complex reporting requirements
  • Mapping requirements to specific data points and metrics
  • Ensuring consistency and comparability across reports

Diverse Data Sources

CSRD requires data from across the organization and value chain, including environmental, social, and governance data that may be stored in different systems.

Key Challenges

  • Collecting data from disparate systems and departments
  • Ensuring data quality and consistency across sources
  • Managing data collection from external partners and suppliers

Assurance Requirements

CSRD introduces mandatory assurance of sustainability information, requiring companies to obtain third-party verification of their reports.

Key Challenges

  • Establishing audit trails for all reported information
  • Documenting methodologies and assumptions for calculations
  • Supporting the assurance process with evidence and documentation

Double Materiality Assessment

CSRD requires companies to assess materiality from both financial and impact perspectives, considering both how sustainability issues affect the company and how the company affects society and the environment.

Key Challenges

  • Conducting comprehensive materiality assessments
  • Engaging with stakeholders to identify material topics
  • Documenting the materiality assessment process and results
The Solution

SOVERN's Regulation-as-Code Approach

How we applied our methodology to transform CSRD into a structured reporting framework

1

ESRS Decomposition & Mapping

Our experts analyzed the European Sustainability Reporting Standards to identify all disclosure requirements and map them to specific data points and metrics.

Key Outputs

  • Comprehensive ESRS requirement catalog with over 500 distinct data points
  • Detailed mapping of requirements to specific metrics and calculation methodologies
  • Dependency graph showing relationships between disclosure requirements
2

Data Model & Collection Framework

We developed a comprehensive data model and collection framework to standardize the collection and validation of sustainability data from across the organization and value chain.

Key Outputs

  • Standardized data model covering all ESRS disclosure requirements
  • Data collection templates with built-in validation rules
  • Integration connectors for common enterprise systems and data sources
3

Reporting & Assurance Platform

We implemented a comprehensive reporting and assurance platform that automates the generation of CSRD-compliant reports and supports the assurance process with audit trails and documentation.

Key Outputs

  • Automated report generation in XHTML format with XBRL tagging
  • Comprehensive audit trails for all reported information
  • Assurance workflow with support for evidence collection and review

Key Technical Components

Data Collection Engine

Standardizes data collection across the organization with built-in validation rules

Calculation Engine

Implements standardized calculation methodologies for all ESRS metrics

Reporting Engine

Generates CSRD-compliant reports with XBRL tagging and audit trails

The Results

Transformative Impact on Sustainability Reporting

How our solution transformed the CSRD compliance landscape

For Reporting Companies

Key Benefits

  • 60% reduction in time required for CSRD reporting activities
  • Standardized data collection across 500+ data points required by ESRS
  • Automated validation against regulatory requirements with real-time feedback
  • Comprehensive audit trails to support the assurance process

"SOVERN's CSRD solution has transformed our sustainability reporting process from a manual, resource-intensive effort to a streamlined, automated workflow. We've reduced our reporting time by over 60% while improving data quality and assurance readiness."

— Sustainability Director, European Multinational

For Assurance Providers

Key Benefits

  • Standardized assurance workflows with built-in evidence collection
  • Comprehensive audit trails for all reported information
  • Automated validation of calculation methodologies and data sources
  • Efficient review and sign-off processes with digital workflows

"SOVERN's approach to CSRD implementation has significantly enhanced our ability to provide assurance on sustainability information. The transparency, traceability, and standardization built into the system have been invaluable for ensuring the quality and reliability of reported information."

— Partner, Global Assurance Firm

Implementation Metrics

500+

ESRS data points implemented

60%

Reduction in reporting effort

25+

Integration connectors

100%

ESRS compliance

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