An article by the Competence Center for Business Controlling & Accounting published in the journal “PiR – International Accounting”, based on a study by FHWien graduate Katharina Reiner, examines companies’ experiences with the initial implementation of European sustainability reporting in accordance with the CSRD and ESRS. The study highlights the organizational, technical, and personnel challenges that are particularly relevant in this context.
Sustainability Reporting: Lessons from the First ESRS Reporting Season
The implementation of the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS) brings profound changes for companies. A recent article by Thomas Kaufmann-Lerchl, Christopher Liska, Clemens Löffler (Competence Center for Business Controlling & Accounting), Josef Baumüller (TU Wien), and FHWien graduate Katharina Reiner, published in the journal “PiR – International Accounting”, analyzes these experiences. The study was based on qualitative interviews with experts from ten large Austrian companies across various sectors.
The results show that sustainability reporting goes far beyond additional reporting requirements. Companies must create new organizational structures, clearly define responsibilities, and strengthen collaboration between different departments. Effective governance structures and support from top management are particularly important.
Data Collection and Resource Requirements as Key Challenges
To date, many companies do not have systems in place to collect all the sustainability data required for ESRS reporting. To ensure the quality and traceability of the data, the study recommends conducting early-stage GAP analyses to identify the discrepancy between the current state and the target state, as well as establishing clear responsibilities and multi-level control mechanisms. In addition, specialized software solutions for collecting and processing sustainability data are becoming increasingly important.
The resource requirements are also considerable. Investments in IT systems, training, and external consulting are often necessary. At the same time, companies must weigh which capabilities they want to build internally and which services they wish to source externally. The researchers point out that sustainability-related functions often compete with other business units for personnel and financial resources.
Sustainability Reporting as a Comprehensive Transformation Process
Another aspect concerns the future mandatory external audit of sustainability information. While many companies view this as an additional burden, they also see it as an opportunity to further develop their processes and improve the quality of their reporting. Overall, the study makes it clear that sustainability reporting should be understood as a comprehensive transformation process. Companies that establish appropriate structures, systems, and capabilities early on cannot only meet regulatory requirements but also achieve long-term strategic advantages.
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