Ma ince ic, I ana; P imo ac, Dinko; Do ic, Ba ba a
A icle
Co po a e Sus ainabili y Repo ing Di ec i e (CSRD):
Obliga ions, Challenges and Requi emen s o Companies
ENTRENOVA - ENTe p ise REsea ch InNOVA ion
P o ided in Coope a ion wi h:
IRENET - Socie y o Ad ancing Inno a ion and Resea ch in Economy, Zag eb
Sugges ed Ci a ion: Ma ince ic, I ana; P imo ac, Dinko; Do ic, Ba ba a (2025) : Co po a e
Sus ainabili y Repo ing Di ec i e (CSRD): Obliga ions, Challenges and Requi emen s o
Companies, ENTRENOVA - ENTe p ise REsea ch InNOVA ion, ISSN 2706-4735, IRENET - Socie y o
Ad ancing Inno a ion and Resea ch in Economy, Zag eb, Vol. 10, Iss. 1, pp. 317-327,
h ps://doi.o g/10.54820/en eno a-2024-0026
This Ve sion is a ailable a :
h ps://hdl.handle.ne /10419/317969
S anda d-Nu zungsbedingungen:
Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen
Zwecken und zum P i a geb auch gespeiche und kopie we den.
Sie dü en die Dokumen e nich ü ö en liche ode komme zielle
Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich
machen, e eiben ode ande wei ig nu zen.
So e n die Ve asse die Dokumen e un e Open-Con en -Lizenzen
(insbesonde e CC-Lizenzen) zu Ve ügung ges ell haben soll en,
gel en abweichend on diesen Nu zungsbedingungen die in de do
genann en Lizenz gewäh en Nu zungs ech e.
Te ms o use:
Documen s in EconS o may be sa ed and copied o you pe sonal
and schola ly pu poses.
You a e no o copy documen s o public o comme cial pu poses, o
exhibi he documen s publicly, o make hem publicly a ailable on he
in e ne , o o dis ibu e o o he wise use he documen s in public.
I he documen s ha e been made a ailable unde an Open Con en
Licence (especially C ea i e Commons Licences), you may exe cise
u he usage igh s as speci ied in he indica ed licence.
h ps://c ea i ecommons.o g/licenses/by-nc/4.0/
317
ENTRENOVA - ENTe p ise REsea ch InNOVA ion
Vol. 10 No. 1
Co po a e Sus ainabili y Repo ing Di ec i e
(CSRD): Obliga ions, Challenges and
Requi emen s o Companies
I ana Ma inče ić
Uni e si y No h, C oa ia
Dinko P imo ac
Uni e si y No h, C oa ia
Ba ba a Do ić
Fo eno a G oup, C oa ia
Abs ac
Today, companies should de elop and ope a e in a sus ainable and g een socie y
wi h he leas possible nega i e en i onmen al impac . A he global le el, i is
necessa y o awaken and de elop an awa eness o he need o accep he concep
o sus ainable de elopmen , hus he applica ion o he Co po a e Sus ainabili y
Repo ing Di ec i e (CSRD) and ESG (en i onmen al, social, and go e nance)
concep . The Co po a e Sus ainabili y Repo ing Di ec i e (CSRD) is he new EU
legisla ion equi ing all la ge companies o publish egula epo s on hei
en i onmen al and social impac ac i i ies. CSRD se s ou epo ing equi emen s and
obliga ions o companies and expands exis ing ules on non- inancial epo ing. CSRD
epo ing will help s akeholde s (in es o s, consume s, policymake s, and o he s)
e alua e la ge companies' non- inancial pe o mance. This pape aims o explo e he
a ea o sus ainabili y epo ing h ough CSRD epo ing and i s connec ion o he ESG
concep in oday's business wo ld.
Keywo ds: sus ainabili y epo ing, CSRD, ESG, business p ocess, accoun ing, audi ing
JEL classi ica ion: M00, M21, M40, Q56
Pape ype: Resea ch a icle
Recei ed: 11 June 2024
Accep ed: 30 Augus 2024
DOI: 10.54820/en eno a-2024-0026
Acknowledgmen s: The au ho s a e hank ul o he in e nal g an o Uni e si y No h,
“"En ep eneu ship and managemen in mode n business" o inancial suppo o
ca y ou his esea ch.
318
ENTRENOVA - ENTe p ise REsea ch InNOVA ion
Vol. 10 No. 1
In oduc ion
The aspi a ion and idea o achie ing a sus ainable economy began wi h he Pa is
Ag eemen on Clima e Change in 2015 and he adop ion o he Sus ainable
De elopmen Goals (SDGs) by he Uni ed Na ions (UN) when he Eu opean Union
c ea ed he ounda ions o igh he challenges posed by clima e change and all o
de elop and ensu e sus ainable de elopmen . The main goal o all egula ions and
di ec i es passed by he Eu opean Union (EU) is o make Eu ope he i s clima e-
neu al con inen by 2050 and o achie e 55% less g eenhouse gas emissions by 2030.
Companies, hei way o doing business, and hei impac on he en i onmen and
socie y play a majo ole in achie ing sus ainable de elopmen and s i ing o a
clima e-neu al con inen . The Co po a e Sus ainabili y Repo ing Di ec i e (CSRD)
was adop ed p ecisely o egula e he business amewo k o companies and hei
impac on he en i onmen and socie y, so ha he company could p esen uni ied
and s anda dized da a in he o m o non- inancial epo ing, i.e. sus ainabili y epo .
EU policymake s de ined and ag eed on The Co po a e Sus ainabili y Repo ing
Di ec i e (CSRD), which en e ed in o o ce on Janua y 5, 2023. Wi h his di ec i e, o
he i s ime in he his o y o epo ing, sus ainabili y epo ing is equalized and b ough
o he same le el as inancial epo ing, all wi h he aim o he Eu opean G een Plan
and he ans o ma ion o Eu ope in o he i s clima e-neu al economy by 2050. The
CSRD di ec i e is signi ican because i eplaces he p e ious Non-Financial Repo ing
Di ec i e (NFRD) and in o ma ion on he di e si y o ce ain la ge companies and
g oups. The new di ec i e is ela ed o epo ing on he social, en i onmen al, and
go e nance impac s o he company i sel . The NFRD (Non-Financial Repo ing
Di ec i e) is somewha simple and applied o a na owe ci cle o obliges. CSRD is a
mo e de ailed and demanding epo ing han he p e iously men ioned di ec i e,
which will ha e o be applied by a ound 50,000 companies, in con as o he p e ious
12,000 acco ding o NFRD. To c ea e a sus ainabili y epo , businesses will ha e o
publish in o ma ion by he Eu opean Sus ainabili y Repo ing S anda ds (ESRS). The
Eu opean Sus ainabili y Repo ing S anda ds (ESRS) aim o speci y all he in o ma ion
an en ep eneu should epo on, i.e. hey p esc ibe he con en and o ma o
in o ma ion ela ed o sus ainabili y. As companies ace inc easing sc u iny om
egula o s, in es o s, and consume s ega ding hei en i onmen al, social, and
go e nance (ESG) p ac ices, unde s anding he obliga ions, challenges, and
equi emen s associa ed wi h CSRD is c i ical o any o ganiza ion ha wan s o h i e
in his egula o y en i onmen . In es iga ing he legisla ion i sel in he a ea o he
Eu opean Union (EU) and ela ed o sus ainabili y i sel , he au ho s Hummel and Jobs
(2022:1) poin ou ha he EU is leading he way in in oducing legisla ion conce ning
sus ainabili y:“(i) companies’ sus ainabili y aspec s (Co po a e Sus ainabili y Repo ing
Di ec i e), (ii) he sus ainabili y o economic ac i i ies (Taxonomy Regula ion), (iii) he
sus ainabili y o inancial p oduc s (Sus ainable Finance Disclosu e Regula ion), and
(i ) he en i onmen al, social and go e nance isks o c edi ins i u ions (Pilla 3
disclosu es)”. This a icle explo es he key ea u es, objec i es, and implica ions o
CSRD in oday's business en i onmen as one o oday's main challenges in e ms o
sus ainable co po a e epo ing.
319
ENTRENOVA - ENTe p ise REsea ch InNOVA ion
Vol. 10 No. 1
Li e a u e Re iew
ESG c i e ia and epo ing
The esul o human ac ions and beha io has caused and con inues o cause global
wa ming and i e e sible changes in he en i onmen (ocean cu en s, ain all
pa e ns, wind cu en s, e c.). The en i onmen is changing signi ican ly, and
inc easingly ex eme wea he condi ions a e endange ing socie y i sel , as well as
en i e economies. Clima e change is isible h ough high empe a u es, d ough s and
o es i es, loods, ising sea le els, coas al a eas, e c. All his leads o disas e s in which,
o example, annual losses caused by d ough in Eu ope amoun o a ound 9 billion
eu os and mos ly occu in he ag icul u al and ene gy sec o s and he public wa e
supply sec o ,
1
wea he condi ions and clima e- ela ed phenomena caused mo e
han 487 billion eu os in inancial losses in he EU, e c. P ecisely o minimize he
men ioned h ea s o he en i onmen , business, and socie y, he Pa is Ag eemen on
clima e change and he Eu opean G een Plan a e he main d i e s owa ds c ea ing
sus ainabili y and p omo ing Eu ope as he i s clima e-neu al con inen by 2050. In
oday's wo ld and a socie y ha s i es o sus ainabili y, ESG c i e ia, i.e. he
applica ion o en i onmen al, social, and go e nance c i e ia, becomes a key
impe a i e in achie ing sus ainable business p ac ices, especially in he inancial
wo ld. In o de o be able o achie e sus ainabili y, i is c ucial o know how o assess
he isks ha he concep o ESG c i e ia ca ies wi h i and how hey a ec business,
bu also he p oduc s, se ices, and in es men s hemsel es (Oli e Yébenes, 2024).
The men ioned c i e ia in luence he amewo k o non- inancial in o ma ion. "Cu en
egula o y de elopmen s, such as he Eu opean Co po a e Sus ainabili y Repo ing
Di ec i e (CSRD), aim o make ESG indica o s (wi hin his iple pe spec i e: social,
en i onmen al and go e nance isks) a key se o in o ma ion o be used by epo e s
and in o ma ion use s" (Oli e Yébenes, 2024). ESG c i e ia a e becoming an absolu e
necessi y in he inancial wo ld in o de o assess all he po en ial isks ha his
componen en ails oday. The ESG concep is no new in he business wo ld, bu
ecen ly i is gaining mo e and mo e impo ance, especially in e ms o e alua ing he
pe o mance o companies in he con ex o sus ainabili y and u he decisions ha
e lec on esponsible and sus ainable co po a e managemen . “En i onmen al,
social, and go e nance (ESG) issues a e d i ing co po a e s a egy and pe o mance”
(A idsson and Dumay, 2021:1091). Acco ding o he au ho s o F ade and F oumou h
(2022), he epo ing ha becomes manda o y h ough CSRD becomes a powe ul
ool o imp o ing he e iciency o he capi al ma ke and p omo ing he dis ibu ion
o inancing o achie e ESG goals. Repo ing on sus ainabili y h ough he ESG
componen and showing non- inancial pe o mance a e necessa y c i e ia and
componen s in addi ion o inancial pe o mance o be able o e alua e he o e all
pe o mance o he business. “ESG epo ing is no longe jus a co po a e obliga ion; i
is a powe ul mechanism d i ing sus ainable de elopmen ” (Chop a e al., 2024:5).
The main goal ega ding ESG epo ing o companies should be in he con ex o
implemen ing ESG epo ing in co po a e s a egies and business ope a ions and
p ocesses o achie e long- e m sus ainabili y. In such an app oach o ESG epo ing,
g ea e anspa ency and accoun abili y a e achie ed, as well as be e
measu emen o e ec s and s imula ion o inno a ion o c ea e a mo e sus ainable
u u e (Chop a e al., 2024).
1
h ps://clima e.ec.eu opa.eu/clima e-change/consequences-clima e-change_h
320
ENTRENOVA - ENTe p ise REsea ch InNOVA ion
Vol. 10 No. 1
The Co po a e Sus ainabili y Repo ing Di ec i e (CSRD)
The Co po a e Sus ainabili y Repo ing Di ec i e (CSRD) ep esen s a majo s ep
o wa d and an upg ade in he p ocess o o mal epo ing in companies. The changes
in EU legisla ion ega ding he new Repo ing Di ec i e a e a majo mo e owa ds
ha monizing inancial epo ing wi h non- inancial epo ing, i.e. sus ainabili y epo ing
(CSRD), o achie e he Sus ainable De elopmen Goals (Ma ko a-Ka puzo a e .al.,
2024). The Co po a e Sus ainabili y Repo ing Di ec i e (CSRD) is a new EU egula ion
ha equi es all la ge companies o publish egula epo s on hei ac i i ies ha a ec
he en i onmen and socie y. Th ough his ype o epo ing, a mo e esponsible and
anspa en way o doing business is encou aged, and all in e es ed pa ies can ha e
insigh in o non- inancial pe o mance. I s adop ion will inc ease he ci cle o hose
obliged o apply, hus inc easing om he p e ious 12,000 companies o 50,000. In
addi ion o inc easing he numbe o use s, CSRD has expanded he con en o
sus ainabili y epo s, ca ies wi h i he obliga ion o e i y sus ainabili y epo s
(ex e nal audi ), de ines he Eu opean Sus ainabili y Repo ing S anda ds (ESRS) as well
as e i ica ion s anda ds and a unique elec onic o ma (ESEF egula ion) (digi al
publica ion epo s). Wha is impo an is ha h ough his di ec i e epo ing becomes
manda o y and a common epo ing amewo k o non- inancial da a is de ined.
CSRD aims o p ope ly, ho oughly, and conc e ely measu e and manage isks ha
a ec he en i onmen , socie y, and go e nance h ough he ESG amewo k
(men ioned in he p e ious chap e ). The CSRD is now in o ce h oughou he
Eu opean Union (EU), and membe s a es should ha e adop ed i in hei na ional
legisla ion by now. The Republic o C oa ia had o include his egula ion in he
Accoun ing Ac , he Audi Ac , and he Capi al Ma ke Ac by July 2024. CSRD equi es
companies ope a ing in he EU o publicly disclose and epo on en i onmen al,
social, and go e nance (ESG) issues. The new di ec i e ecognizes he impo ance o
he ESG concep , which is included in e e yday business ope a ions and now in he
e y concep o epo ing. CSRD ep esen s a g ea challenge o oday's companies
o inco po a e i in o hei ope a ions and ul ima ely c ea e a sus ainabili y epo .
Howe e , i is also a g ea oppo uni y o companies o be able o inc ease hei
anspa ency and build loyal and long- e m ela ionships wi h all in e es ed
s akeholde s, all wi h he aim o achie ing sus ainable business and sus ainable
business p ac ices. CSRD is eplacing he NFRD (2014/95/EU)
2
(Non-Financial Repo ing
Di ec i e) and widens he scope o manda o y sus ainabili y epo ing compa ed o
NFRD. The NFRD was in oduced in 2014 o inc ease anspa ency and publish non-
inancial in o ma ion ela ed o ESG issues, bu he e is no uni o m, s anda dized
amewo k o he same, no uni o m s anda dized s anda ds ha do no allow o
compa ison. When we alk abou NFRD „ he sus ainabili y issues alling wi hin he
scope o companies’ “non- inancial s a emen ” mus co e , as a minimum,
en i onmen al, social and employee ma e s, espec o human igh s, an i-co up ion
and b ibe y“(Dolmans e al., 2021). The goal o he new Di ec i e is o make company
announcemen s mo e comp ehensi e and mu ually compa able, such as inancial
and accoun ing epo s. The Co po a e Sus ainabili y Repo ing Di ec i e (CSRD) and
he Non-Financial Repo ing Di ec i e (NFRD) a e amewo ks es ablished by he
Eu opean Union o inc ease co po a e anspa ency and accoun abili y ega ding
sus ainabili y. Al hough he Di ec i es a e simila , he e a e di e ences be ween hem
(Table 1).
2
h ps://eu -lex.eu opa.eu/legal-con en /EN/TXT/PDF/?u i=CELEX:32014L0095& om=EN
321
ENTRENOVA - ENTe p ise REsea ch InNOVA ion
Vol. 10 No. 1
Table 1
CSRD s. NFRD
NFRD
CSRD
Adop ed
2014
2021
Applies
F om 2017 un il companies s a
o apply CSRD
F om 2025 ( epo ing on 2024
da a)
Scope
La ge public companies, wi h
mo e han 500 employees
Lis ed companies, banks,
insu ance companies
Focuses only on EU-based
companies
The di ec i e applies o 12.000
companies ac oss he EU
Applicable o all la ge
companies ope a ing in he EU
Ini ially, la ge companies ha
mee wo o hese h ee
c i e ia:
- €40 million ne u no e
- €20 million on he
balance shee
- 250 employees
Focuses no only on EU–based
companies bu also subsidia ies
o global non-EU-companies
ha a e no inco po a ed in
he EU bu ha e secu i ies on EU
ma ke s
The di ec i e applies o mo e
han 50.000 o ganiza ions
Repo ing and
o ma
Repo ing is no s anda dized,
companies may choose o use
any in e na ional, Eu opean, o
na ional guidelines o epo
Repo ing online on websi e o
a company (The e is no digi al
epo ing).
Repo ing is s anda dized, by
ESRS ( he manda o y EU
Sus ainabili y Repo ing
S anda ds)
Companies will ha e o
p epa e hei disclosu e in
XHTML o ma , a new digi al
epo ing o ma (acco ding o
Eu opean Single Elec onic
Fo ma (ESEF))
Fo m
A inancial s a emen is
included in he managemen
epo
(o in a sepa a e epo )
A inancial s a emen is
included in he managemen
epo (o in a sepa a e epo )
Audi
equi emen s
Audi ing is no manda o y
Audi ing is manda o y
Assu ance
S anda d
No speci ic assu ance
s anda ds
Limi ed assu ance on he
company’s sus ainabili y
epo ing, including
compliance wi h he epo ing
s anda ds (inc easing he
eliabili y and c edibili y o he
epo ed in o ma ion)
322
ENTRENOVA - ENTe p ise REsea ch InNOVA ion
Vol. 10 No. 1
Ma e iali y
Double ma e iali y – in o abou
how sus ainabili y issues a ec
hei inancial pe o mance
Double ma e iali y:
- The impac o he
ac i i ies o
en ep eneu s on
people and he
en i onmen
- The impac o
sus ainabili y issues on
he ac i i ies and
business i sel
- en ep eneu
Disclosu e
ma e s
En i onmen , social and
employee ma e s, espec o
human igh s, and
an ico up ion and b ibe y
ma e s
En i onmen al, social,
employee, human igh s,
co up ion, b ibe y
Disclosu e
equi emen s
- En i onmen al, social,
and employee ma e s
- Respec o human igh s
- An i-co up ion and
b ibe y ma e s
- Di e si y policy o boa ds
o di ec o s
- Desc ip ion o business
model and s a egy
- Desc ip ion o ela ed
a ge s, hei
achie emen p og ess,
and i hey a e based
on scien ific e idence
- Role and expe ise o
adminis a i e,
managemen , and
supe iso y bodies
- Sus ainabili y- ela ed
policies
- Sus ainabili y-linked
incen i e schemes
- Desc ip ion o due
diligence p ocesses
and PAIs (p incipal
ad e se impac s) and
mi iga ing ac ions
- Sus ainabili y- ela ed
isks and isk
managemen
Sou ce: modi ied by au ho s acco ding o Hummel, K., & Jobs , D. (2024:6,12). ,
h ps://www.quen ic.com/a icles/in og aphic-cs d- s-n d/,
h ps://www.c ediblesg.com/blogs/unde s anding- he-eu- axonomy-di e ences-be ween-
n d-cs d-and-s d /
323
ENTRENOVA - ENTe p ise REsea ch InNOVA ion
Vol. 10 No. 1
To da e, i has been di icul o companies o compa e and measu e sus ainabili y
epo s because he published in o ma ion di e s widely in he mul i ude o epo ing
s anda ds and amewo ks, bu wi h he de elopmen o ESRS s anda ds and he
o ma ion o CSRD, his epo ing will be la gely s anda dized and uni ied. The e o e,
sus ainabili y epo ing is now egula ed h ough manda o y (equal) epo ing
s anda ds (ESRS), and companies a e obliged o epo by he ESRS adop ed by he
Eu opean Commission. The e a e h ee ESRS ca ego ies: c oss-cu ing, opical
s anda ds (en i onmen al, social and human igh s, and go e nance), and sec o -
speci ic s anda ds.
3
The di ec i e wan s o ensu e he publica ion o quali y
in o ma ion on sus ainabili y, and o achie e his, he s anda ds, i.e. ESRS, ha e a g ea
ole and impo ance. The main pu pose o ESRS is o enable a simple and logical
s uc u e o sus ainabili y in o ma ion. The i s sus ainabili y epo s compiled
acco ding o ESRS s anda ds will be published in 2025 o he inancial yea 2024. The
main goal o CSRD is o de ine a s anda dized and common language ela ed o
sus ainabili y in o ma ion, b inging sus ainabili y epo ing o he same le el as inancial
epo ing. O g ea impo ance and g ea inno a ion in he new CSRD is he concep
o double ma e iali y men ioned p e iously and h ough Table 1. Al hough he
concep o double ma e iali y is al eady men ioned and appea s in he NFRD h ough
he CSRD, i appea s in he o m o “Ou side-Inside" and "Inside-Ou side" pe spec i es.
„Acco ding o he i s pe spec i e, he goal will be o look a how sus ainabili y ac o s
a ec he company's de elopmen , pe o mance, and business posi ion. In he
second pe spec i e, he goal will be o obse e wha is he impac o he company's
ac i i y on i s su ounding en i onmen and people. This dual, and simul aneous, ocus
would be able o ensu e, om he Eu opean legisla o 's pe spec i e, a comple e and
mo e accu a e pic u e o sus ainable issues“(Celli e al., 2024:47).
CSRD cu en ly includes and e e s o he ollowing business en i ies ha a e obliged
o apply he new ules, i.e. he new di ec i e:
4
• All en ep eneu s lis ed on he egula ed EU ma ke (including SMEs lis ed on he
as ack, bu excluding mic o-en ep eneu s)
• All la ge en ep eneu s who exceed wo o he h ee ollowing c i e ia (in
acco dance wi h he Accoun ing Di ec i e 2013/34/EU)
- 250 employees du ing he inancial yea ;
- To al asse s EUR 20 million;
- Ne income EUR 40 million(CSRD-2022/2464/EU).
The applica ion o he new ules, i.e. he applica ion o he new Di ec i e, is as ollows:
• F om Janua y 1, 2024 ( i s epo s in 2025) o en ep eneu s al eady co e ed by
he scope o The Di ec i e on non- inancial epo ing (NFRD) 2014/95/EU;
• F om Janua y 1, 2025 ( i s epo s in 2026) o o he la ge en ep eneu s;
• F om Janua y 1, 2026 ( i s epo s in 2027) o SMEs lis ed on he s ock exchange;
• F om Janua y 1, 2028 ( i s epo s in 2029) o non-EU en ep eneu s wi h
b anches/subsidia ies (CSRD-2022/2464/EU) (Figu e 1).
3
h ps://accoun ancyeu ope.eu/publica ions/ aqs-on-co po a e-sus ainabili y- epo ing-
di ec i e/#wha -is- he-scope-o - epo ing- equi emen s-?
4
h ps://accoun ancyeu ope.eu/publica ions/ aqs-on-co po a e-sus ainabili y- epo ing-
di ec i e/#wha -is- he-scope-o - epo ing- equi emen s-?
324
ENTRENOVA - ENTe p ise REsea ch InNOVA ion
Vol. 10 No. 1
Figu e 1
Timeline o epo ing ega ding CSRD
Sou ce: Au ho s acco ding o CSRD (CSRD-2022/2464/EU)
Impac o CSRD on business
CSRD's impac on business will ce ainly be signi ican . In luences on companies, bo h
in e nal and ex e nal, will ce ainly be easons o companies o s a in oducing
sus ainable p ac ices and epo ing. S ic EU ules will also demand sus ainable clien s,
sus ainable plans, and sus ainable in es men s om companies, so he companies
hemsel es will ocus on eaching new and sus ainable cus ome s, supplie s, in es o s,
and o he s akeholde s. E en he au ho s Odobaša and Ma oše ić (2023) unde s and
he impo ance o he new Di ec i e in e ms o s eng hening he esponsibili y o
companies o c ea e a sus ainable economy and socie y as one o he key goals o
he EU, all o educe he nega i e ecological and social oo p in on he sus ainable
ope a ions o companies and he economy as a whole. Wha he new Di ec i e b ings
is an expansion o he in o ma ion i p o ides in epo ing, which is a ocus on business
plans and s a egies, analysis o double ma e iali y, due diligence, policies ela ed o
he de elopmen o sus ainabili y, isks, oppo uni ies, e c., all o which a e connec ed
o he en i e supply chain included in he en i e business p ocess o he company (Celli
e al., 2024). Fo companies o success ully implemen all he equi emen s o he
Co po a e Sus ainabili y Repo ing Di ec i e (CSRD), i is necessa y o es ablish a
amewo k o i s implemen a ion h ough he Sus ainabili y Balanced Sco eca d
(SBSC) (H is o and Sea cy, 2024). The challenge was pu be o e he companies
ega ding he implemen a ion and u he ope a ions by CSRD. Companies mus
de ine and es ablish business p ocesses wi h a ocus on sus ainabili y, whe e hey mus
use all necessa y in e nal and ex e nal in o ma ion and esou ces, and include all
in e es ed s akeholde s o achie e he ul ima e goal, which is he achie emen o
sus ainable de elopmen h ough an e ec i ely implemen ed di ec i e and
con ibu e o posi i e changes (S aud e al., 2023). CSRD is ce ainly an oppo uni y
o companies o achie e and imp o e hei sus ainabili y p ac ice, bu as al eady
men ioned he e a e challenges ha companies ace in he con ex o i s ecogni ion
and implemen a ion i sel . Some o he challenges and implica ions aced by
companies a e he in eg a ion o CSRD in o he business s a egy, along wi h he
impo ance o ecognizing and unc ioning acco ding o he ESG concep as a new
model o sus ainable business. Fu he mo e, changing he business p ocesses
hemsel es and aligning hem wi h he Di ec i e equi es companies o ha e
p ocesses ha will collec and analyze sus ainabili y da a, as well as ained and
