Sustainability Reporting in 2025: How CSRD Will Reshape Business Strategy

As the end of the year approaches, many companies are taking stock and planning for the future. This time of year, traditionally associated with strategic reflections, now takes on an even greater significance due to the regulatory changes coming into force in 2025. These include the Corporate Sustainability Disclosure Directive (CSRD), which is transforming the way organizations communicate their performance in environmental, social and governance (ESG) areas.

The CSRD not only increases the number of companies covered (including large companies and listed companies), but also requires a much higher level of detail in the information provided. From 2024, companies with more than 250 employees or with certain financial thresholds (revenues of more than 40 million euros or assets of more than 20 million euros) will have to disclose precise information on environmental impact, social practices, corporate governance and sustainability-related risks.

With CSRD, companies face a new level of transparency and accountability, but also significant challenges related to data collection and analysis, the implementation of processes and the associated costs.

What does CSRD mean for companies?

The CSRD requires companies to disclose detailed data on the impact of their activities in areas such as carbon footprint, gender diversity, working conditions and supply chains. For example, in the fashion sector, some brands are already facing significant challenges in reporting the full traceability of their supply chains.

This initiative aims to harmonize ESG reporting, allowing investors and stakeholders to better understand the risks and opportunities related to sustainability.

According to PwC's Global CSRD Survey, companies are generally aware of the importance of the CSRD and the need to adapt to the new requirements. However, the survey reveals that many still face significant difficulties in implementing the changes required by the directive.

The Main Challenges Identified

One of the biggest difficulties reported by companies is the ability to collect and analyze ESG data effectively and accurately. CSRD requires a high level of detail and precision, which implies setting up robust systems to monitor and report on their activities.

Another challenge is the lack of standardization in ESG data. Although there are frameworks like the UN’s Sustainable Development Goals (SDGs), the absence of a single methodology creates compliance complexity.

In addition, many companies need to invest in technology to support CSRD requirements. However, the costs and complexity of implementing technological systems are a major barrier — especially for SMEs.

Figure 1: Obstacles to implementing CSRD

The PwC survey shows over 90% of companies still use spreadsheets for ESG reporting. Advanced tools like carbon calculators, data lakes and sustainability platforms remain underutilized.

Figure 2: Few companies are already using specialized technological solutions for sustainability reporting

This highlights the urgent need to adopt automated tools to improve reporting accuracy and support ESG integration in business strategy.

AI-based tools like Nextbitt’s EMS platform are expected to grow. Predictive analytics and machine learning will provide deeper insights, reduce reporting time, and support regulatory compliance.

Opportunities for companies

Despite the challenges, the CSRD brings opportunities for transformation and market differentiation. Companies that adapt early will strengthen their reputation, attract investors, and promote sustainable business models.

Strengthening Corporate Reputation

CSRD provides an opportunity to improve brand perception. Transparent ESG reporting builds trust with stakeholders and proves commitment to sustainability.

Improving Risk Management

ESG reporting enables companies to monitor risks proactively — such as overuse of resources or unethical labor practices — leading to more resilient operations.

Increasing Competitiveness in the Global Market

Companies with embedded ESG strategies gain a competitive edge. Responsible business practices are a key differentiator as consumers favor ethical brands.

How to prepare for the CSRD

1. Carrying out an Initial Diagnosis

Evaluate your current ESG maturity and identify gaps versus CSRD standards.

2. Investing in technology

Adopt digital tools for automated ESG reporting, such as specialized software that reduces errors and improves efficiency.

3. Empowering Teams

Invest in training your staff and hiring ESG experts to lead compliance and reporting initiatives.

4. Establish partnerships

Work with consultants and collaborative networks. Create synergies with suppliers and customers to align sustainability efforts.

The Future of Sustainability Reporting: Transparency and Opportunities

With CSRD, sustainability reporting shifts from a compliance task to a strategic opportunity. Companies that implement digital and automated ESG systems will improve credibility, reduce risk and gain a long-term market advantage.

Transparency and ESG integration are now essential for business resilience. The future lies in digital-first, reliable and strategic ESG reporting.

Prepare your business today. Contact Nextbitt to discover how our platforms can help you align with CSRD and build a more sustainable future.