The world of corporate reporting is facing a significant transformation, driven further by the latest draft bill from the Federal Ministry of Justice (BMJ) to transpose the Corporate Sustainability Reporting Directive (CSRD) into German law. Five Glaciers Consulting offers you a detailed insight into the key aspects of this draft and its implications for your company.

The innovations at a glance

Integration into the management report

A key element of the draft is the integration of the sustainability report into the management report. This underlines the importance of sustainability reporting and ensures coherent reporting. Particular attention is paid to the role of the "auditor of the sustainability report", who acts as an auditor with specific additional qualifications and ensures the credibility of sustainability reporting. The integration of the sustainability report into the management report signals a decisive shift: sustainability is a central component of corporate strategy and communication.

‍Simplificationthrough clarity

One significant change concerns the avoidance of duplication in reporting. Information on non-financial performance indicators, which previously had to be included in both the management report and the report in accordance with the German Supply Chain Sustainability Act (LkSG), is now only consolidated in the sustainability report. This creates clarity and enables companies to communicate their sustainability performance more effectively. This strategic clarity allows companies to focus on the presentation of their sustainable performance.

Consideration of intangible resources

The draft also introduces new reporting requirements for narrative disclosures on material intangible resources. This change recognizes that intangible assets such as employee skills and intellectual property are central pillars of sustainable value creation. Companies must now explain how these resources influence their business model and sustainability strategy. This reporting promotes a more comprehensive understanding of corporate values.

Recommendations for action: A guide for companies

Early preparation

Start adapting your internal processes and systems now. Dealing with the new requirements at an early stage will give you a head start and minimize future challenges.

Education and qualification

Invest in training your teams and especially the auditors responsible for the sustainability reports. Building the right expertise internally will be crucial to meet the new standards.

Stakeholder communication

‍Informall relevant stakeholders, including employee representatives, about the planned content of the sustainability report at an early stage and involve them in the process.

Strategic integration

Take the opportunity to establish sustainability reports as an integral part of your corporate strategy. Coherent reporting that takes equal account of financial and non-financial performance indicators strengthens stakeholder confidence and positions your company as a pioneer in sustainability.

Conclusion: Reduce effort through structured preparation

The draft bill on CSRD implementation represents a turning point for corporate reporting in Germany. The changeover to the new CSRD guidelines means an increase in administrative tasks for many companies. Nevertheless, the German legislator aims to minimize these burdens through a direct 1:1 implementation of the CSRD guidelines. Proactive preparation and strategic planning can make this transition much easier.

Five Glaciers Consulting is ready to help you navigate through these ongoing changes, adapt your processes and take advantage of the opportunities that the expansion of reporting content presents for companies. Contact us for a no-obligation initial consultation.