Congratulations on completing your double materiality assessment! Now that you've reached this significant milestone, you're probably wondering what comes next. Here's what you need to know.

Post-DMA Phase: Defining IROs and Data Points

After completing the Double Materiality Assessment (DMA) phase, you have identified the potential impacts, risks, and opportunities (IROs) for each sustainability topic. From these IROs, you can determine the data points you need to report to become CSRD (Corporate Sustainability Reporting Directive) compliant. This is where the real challenge begins.

Why Does This Matter?

Properly collecting data is crucial for CSRD compliance. ESG (Environmental, Social, and Governance) data needs to be as reliable as financial data. It is essential for:

• Reliability and Auditability: The data must be traceable and auditable by a third party.

• Goal Setting: Understanding the data is vital for setting impactful and achievable sustainability goals.

• Mandatory Reporting: The data will form the basis of your mandatory sustainability reports.

Challenges in Data Collection

Collecting data for CSRD compliance presents several challenges:

• Diverse Data Types: The scope of the CSRD is extensive, requiring data on a wide range of topics such as electricity consumption, salary gaps, and employee commutes.

• Inconsistent Data Formats: Data formats can vary greatly, with differences in thousands of separators (spaces, commas, apostrophes, dots) depending on the country of origin.

• Scattered Data Sources: Data must be collected from various sources, including ERP systems, energy management software, HR tools, and travel tools.

• Disaggregated Data: Data must be broken down by country, site, and activity.

• Hard to have verifiable Data: You need to be able to trace the origin of the data and aggregate it accurately. Any assumptions should be documented, and third parties should be able to replicate your results.

Tips for Easing the Process

Despite the challenges, there are strategies to simplify the data collection process:

• Start Early: You will need to report in 2026 on the data collected in 2025. Therefore, you should have a system in place by January 1, 2025. Addressing any gaps early in 2026 reduces the risk of missing crucial data points.

• Implement Repeatable Processes: Regular data collection is essential. Doing it once a year is probably not enough. You wouldn’t do this for your financial data, would you?

• Avoid Excel Templates at all costs: Using Excel will lead to errors and turn the project into a nightmare. Instead, opt for more reliable and efficient data management tools.

Best Practices for Success

To succeed in your CSRD compliance efforts, leverage all available resources:

• Hire Consultants: Consider hiring consultants to guide you through the process.

• Invest in Software: Equip yourself with dedicated software to manage data, reports, goals, and actions in one place. Make sure you opt for a tool that can work with the source files of your Information Systems (remember: Excel templates are hell). 

‍At ROSE, we believe the combination of human expertise and technology provides the best chance for success, helping you make a positive impact. This is why we gathered a team of sustainability experts while building our software. 

By following these guidelines, you can streamline your data collection process and ensure compliance with CSRD requirements, setting your organization up for long-term sustainability success.

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