PwC CEE CSRD Services

This analysis consists of three steps.

• The first step in analysing ESG projects is an examination of ESG regulations and potential legal loopholes. We offer extensive legal knowledge on key ESG regulations, including — taxonomy, CSRD, the draft Corporate Sustainability Due Diligence Directive (CSDDD) and the Sustainable Finance Disclosure Regulation (SFDR). This initial analysis encompasses regulations which cover a company directly and indirectly, such as — requirements regarding investor relations and on suppliers.
• Based on the findings of the initial application analysis, in the next step we conduct analysis of any legal gaps in the ESG area. We analyse the extent to which a company has fulfilled its ESG legal obligations, and provide directional comments or comprehensive support as appropriate. 
• Thirdly, analysis may cover both a single entity or an entire capital group, taking into account the obligations jointly performed by the group entity and the parent company.

CSRD/ESRS gap analysis

In developing a sustainability report in accordance with CSRD and European Sustainability Reporting Standards (ESRS), it is important that organisations are prepared and have conducted analysis of readiness for new obligations.

During this stage, we analyse the current reporting situation of a company, which encompasses topics historically assessed internally as important. The analysis provides knowledge about the level of the organisation's readiness to report in accordance with ESRS standards. This typically encompasseses listing and categorising gaps in relation to each information disclosure obligation. This might include elements of processes, procedures, quality or data availability that are missing and which are fully or partially available. Reporting gap analysis may also include the establishment of a further action plan.

The results also serve as a basis for discussion on a company’s existing risks and controls — or those which are lacking — in relation to sustainable development issues covered by the new standards.

The reporting gap analysis process is supported by PwC CSRD Quick Scan technology. This ensures the client receives a precise, interactive dashboard with a clear map of gaps.

Double materiality – business model and value chain analysis as an input to ESG strategy and reporting:

Double materiality analysis is the basis and starting point for sustainability reporting. It helps determine which ESG issues should be included in a company's report.

CSRD requires companies to adopt and apply the concept of double materiality. It is a multistage process that allows the definition, assessment and prioritisation of  sustainable development related issues in the context of impact, risks and opportunities. Double materiality comes from the perspective of the company itself and the entire value chain — including services and products offered. Of particular importance for enterprises is the analysis of negative impacts and associated risks that carry potentially negative financial consequences.

We support clients in conducting a double materiality analysis according to a methodology consistent with CSRD guidelines and ESRS standards. As part of this process, we analyse the company's operations, business model, business relationships and the value chain. We carry out the process of identifying and assessing current and potential ESG impacts, risks and opportunities from two perspectives: impact materiality (the impact of the company's activities on the environment) and financial materiality (the impact of the environment on the company).

We also support the consultation process with stakeholders in order to include them in the materiality assessment process and to determine which sustainability issues are important from their perspective.

The results of the materiality analysis provide a basis for reporting, operational and management activities. Materiality analysis provides a client company with an understanding of the connections between impact, risks, opportunities, strategy, and business models. This allows the company to plan actions to enable effective management of the highest priority ESG areas.

Development of an ESG/sustainability strategy

Preparing a comprehensive ESG/sustainability strategy is an integral step to embedding CSRD in a company’s business processes. An ESG strategy defines a company's goals and activities related to sustainable development. 

The strategy is likely to encompass: counteracting climate change, sustainable supply chain management, responsible investing, sustainable financing, regulatory compliance and diversity.

We advise on how to prepare an ESG strategy consistent with a company’s business model, but is also responsive to needs identified during stakeholder analysis. We also support the implementation of changes in the organisation to create value through all ESG activities in the ESG area.

We guide companies through the complex process of creating and implementing an ESG strategy. This starts with maturity assessment and materiality analysis , then defining and implementing ESG indicators and measurable goals (KPIs), as well as developing the company's approach to cooperation with contractors and clients and ESG communications.

Developing corporate governance and defining the role of management and supervisory bodies

New CSRD and ESRS reporting obligations compel companies to analyse existing processes and procedures. Obligations concern, for example, ESG management by administrative and supervisory bodies and their implementation into functioning management systems. Sustainability reporting processes should also be embedded in appropriate management structures. 

We support clients in defining the roles and responsibilities of supervisory and management bodies, including committees. The scope of support includes sustainability reporting, monitoring the organisation's impact and opportunities and setting and monitoring ESG goals and processes. 

New CSRD responsibilities also extend to audit committees, who are obliged to monitor reporting on sustainability as well as financial reporting.

This work on corporate governance and defining the role of management and supervisory bodies is built on close cooperation with PwC specialists. The outcome of this stage is that the ESGs that are particularly important from the client’s perspective are integrated into the existing management model. Additionally, PwC support will assist clients to be ready to respond to upcoming regulatory changes.

Incorporating ESG risks into risk management systems

We offer support in meeting CSRD and ESRS requirements on the disclosure of information on ESG risks — and their mitigation and management. We help companies with many aspects of ESG risk, such as:

• Designing and implementing risk management processes, incorporating ESG risks 

• Adapting current company risk management processes (or Enterprise Risk Management - ERM) to regulatory and methodological requirements related to ESG risks

• Identification and valuation of ESG risks 

• Establishing the resilience of business models and strategies to identified risks and, if necessary, prepare plans to ensure compliance in the transition to sustainable economy and climate neutrality goals

• Financial valuation of the impacts of physical risks and risks and opportunities of transformation in terms of asset impairment (or damage to assets) and decreases or increases in operating revenues.

The development of ESG processes, procedures, and policies

Appropriate processes and procedures are part of an effective ESG strategy that brings added value to an organisation and supports it in achieving long-term goals. We provide support in developing policies, procedures, practices and guidelines — which are consistent with legal requirements, standards and good market practices in these areas:

• Environmental — such as — procedures aimed at reducing resource consumption, waste and pollution and reducing emissions

• Social — including — remuneration policies, inclusion and diversity guidelines and procedures, improving working terms and conditions and respecting human rights

• Corporate governance — for instance — procedures and principles aimed at improving responsibility, transparency and ethical conduct, including codes of ethics and policies for stakeholder engagement and whistleblower protection.

We also provide guidance on creating a roadmap for ESG activities — combining the client's business goals and legal requirements with ESG outcomes. Developing an ESG roadmap helps manage ESG risk, attract investment and deliver long-term value to shareholders.

Value chain analysis and building a due diligence system (to manage negative impacts)

We offer support in adapting to current and upcoming regulatory requirements regarding the value chain, including:

• Conducting an analysis of the application and analysis of legal gaps regarding ESG requirements in the area of due diligence (CSRD, Taxonomy, CSDD)

• Developing a methodology for assessing and monitoring suppliers in terms of implementing environmental standards and protecting human rights

• Preparation of the reporting process of activities carried out

• Development and implementation of a due diligence system

• Value chain assessment using the PwC Sustainable Value Chain Checker tool;

• Assessment of risks resulting from the analysis and preparation of proposals for mitigating actions.

Preparing reporting processes and the implementation of supporting tools

The ESG reporting process should be placed on an equal footing with other key processes and embedded in appropriate management structures.

We support clients in creating an optimal ESG management and reporting model — including the assignment of roles and responsibilities. We also advise on data collection concepts for the periodic preparation of ESG reports, consolidation of this data and their verification. We assist in identifying appropriate indicators to be included in reporting. 

To optimise established processes, we prepare clients to implement reporting tools. This involves an analysis of current infrastructure and reporting and analytical tools that support the ESG area. It includes examining the structure and interconnections of current ESG data sources and evaluating data collection and reporting procedures.

Preparation of sustainability reports

Sustainability reporting is a complex process, regardless of the size of the organisation, and is subject to frequent changes. Producing accurate and transparent sustainability reports is becoming increasingly important, especially in the context of the regulatory changes brought by CSRD. Using recognised reporting standards ensures that the information provided to stakeholders is verified and comparable.

Annual sustainability reports provide each organisation with not only a reference point against which to measure progress in achieving its strategic goals, but also enable the identification of actions that should be taken to improve results and appropriately allocate resources. 

We assist you effectively prepare sustainability reports that meet international standards and the requirements of both internal and external stakeholders. We also use technological tools - both in cooperation with leading technology providers and with the support of our proprietary ESG Management Solution. 

Our support includes: defining the scope of reported information, dialogue with stakeholders, industry benchmarking, supervision of the data collection process and calculation of indicators, development of the structure and content of the report, as well as graphic design.

The sustainability reporting process implemented with us is comprehensive, effective and transparent.

Preparation of management reports

CSRD is changing the approach to ESG reporting. ESG should be incorporated into reporting on the company's strategy, priorities and values. The non-financial report should be correlated with the financial report and aimed at accounting for assumed goals and effectiveness of the company's activities. This brings the necessity to properly manage information and data related to ESG issues in companies.

ESG leaders, as well as supervisory and management bodies in companies, face challenges in adapting reporting and data management methods in a dynamically changing environment. Coupled with increasing stakeholder expectations — this combines to make appropriate management reports and control systems a necessity.

We offer services in development and improvement of management processes for effective data collection and analysis. We work with clients to improve their current ESG data collection models to adapt to new regulatory requirements, incorporating CSRD and ESRS. We assist professionals responsible for ESG to create conditions for quick access to the current and complete data required to monitor enterprise operations, make strategic business decisions and manage risks.

The technological transformation of data collection and sustainability reporting

The key to change in CSRD reporting lies in integrated and automated data management. Organisations are transitioning from inefficient manual systems to a modern ESG database environment. In this model:

• A central ESG Data HUB platform aggregates all ESG data

• Data collection processes are automated and precise

• Cloud technologies allow systems to scale easily

• Data has a complete audit trail

• There is a data-driven solution that feeds ESG reporting processes and the calculation of indicators such as the organisation’s carbon footprint — as well as other ESG KPIs.

At PwC, we offer support at every stage of this transformation, including:

• Audit of current systems for gaps and possible weaknesses

• Design of a new architecture and data model

• Consulting on the selection and implementation of systems dedicated to CSRD, to comply with and move beyond regulations

• Implementation of scalable and flexible data management methods

• Development of data quality verification procedures

• Creating an integrated ESG reporting ecosystem. 

As part of the new platform and data architecture, we integrate a dedicated PwC tool, ESG Management Solution, which precisely measures, among other ESG indicators, carbon footprint and other emissions, both for the entire organisation and for individual products.

Our cooperation with regulatory specialists ensures consistency and compliance with legal requirements.

Sustainability report certifications