European Companies Focus on Transparency and Risk Management in First CSRD Reporting Exercise

European companies placed value chain analysis and supply chain risk assessment at the center of their sustainability reports. Deloitte’s study, “Beyond compliance: Observations on practices following Wave 1 of CSRD reporting”, shows that eight out of ten organizations included these tools in their first mandatory reports under the Corporate Sustainability Reporting Directive (CSRD).

On average, companies reported 7.6 material topics, with report sizes ranging from 50 to 400 pages. Many organizations faced difficulties in structuring sustainability data, particularly in their relationships with indirect suppliers. This outcome highlights a clear need for transparent mechanisms to engage with stakeholders.

Different Directions Across Industries

The report highlights significant variations across sectors. Fast-moving consumer goods (FMCG) companies emphasized supply chain transparency and circular economy practices. Among the 62 companies analyzed, more than 90% included policies on recycling and waste management, while 79% announced deadlines for implementing these measures.

In the energy and industrial production sectors, the central theme was the reduction of Scope 3 emissions. Of the 55 companies assessed, 30 set net-zero targets and outlined roadmaps for energy transition and electrification of processes.

Financial institutions integrated ESG criteria into lending and investment practices. Seven out of ten banks established emissions targets for at least five sectors, while all 20 banks in the study applied the Partnership for Carbon Accounting Financials (PCAF) methodology to calculate financed emissions. Eleven out of twelve insurers also relied on this framework.

Sustainability Reporting as a Strategic Process

“The experience of companies that reported in the first CSRD wave provides a valuable reference framework, governed by three essential principles — structure, transparency, and collaboration,” said Ovidiu Popescu, Partner at Deloitte Romania. According to him, reporting must be seen as a repeatable and strategic process, not simply as an administrative exercise.

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A central element of reporting is the double materiality assessment, which allows companies to evaluate both their impact on the environment and society, and the risks external factors pose to their own operations. Deloitte notes that this tool, together with stakeholder engagement policies, supports decision-making and strengthens trust.

Corina Dimitriu, Partner Audit and ESG Assurance Leader at Deloitte Romania, emphasized the difference between financial and sustainability reporting. “The outcome of the process is not only an audit opinion but a set of performance arguments and sustainable development directions, convincing for clients, partners, financiers, and investors,” she explained.

Digitalization of Reporting

The study shows a clear orientation toward digitalization. Companies highlighted the need for technical solutions to collect and consolidate data. Some invested in new systems, while others adapted their existing IT infrastructure.

A key step is digital tagging of content, which allows automated reading of information. This practice will become mandatory with the adoption of the eXtensible Business Reporting Language (XBRL) format at the European level. Deloitte sees this standardization as a path to greater efficiency and comparability between reports.

An outlook for the European Market

Deloitte’s study analyzed 200 reports from companies in France, Germany, the Netherlands, Spain, the United Kingdom, and 13 other European countries. The industries represented included FMCG, energy and industrial production, financial services, technology, and healthcare.

The results show that CSRD reporting extends beyond a legal obligation. The process requires companies to redefine their role as part of a broader ecosystem with multiple responsibilities toward stakeholders. Organizations that combine compliance with a clear sustainability strategy gain a competitive advantage and greater appeal to investors.

The first CSRD reports mark the beginning of a phase where data serve as tools for development and as indicators of credibility. Deloitte anticipates that as digitalization progresses, reporting will become less burdensome and more focused on added value.

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