The Corporate Sustainability Reporting Directive (CSRD) introduces mandatory sustainability reporting standards for organizations operating in or engaging with the European Union (EU) and European Economic Area (EEA). Affecting over 71,000 companies, it significantly expands the scope of entities required to report compared to its predecessor, the Non-Financial Reporting Directive (NFRD). Compliance with the CSRD relies on adherence to the European Sustainability Reporting Standards (ESRS).
CSRD compliance is phased in over several years, with reporting obligations tied to company size, operations, and geography. Here’s a breakdown of the timeline:
Under the CSRD, companies are required to identify and assess sustainability impacts, risks, and opportunities according to the European Sustainability Reporting Standards (ESRS). This includes evaluating the environmental, social, and governance (ESG) impacts of their operations, as well as their entire value chain — spanning both suppliers (upstream) and customers (downstream), including indirect relationships.
The ESRS framework includes five environmental, four social, and one governance standards. One Click LCA supports analysis in areas such as:
One Click LCA’s early-phase tool, Carbon Designer 3D provides a quick and seamless solution for quantifying whole business-level impacts for Architecture, Engineering, and Construction (AEC) companies. It generates construction projects of any type, anywhere in the world, in just minutes.
Companies establish their own thresholds for impact materiality. Any exclusions must be disclosed and are subject to audit.
Financial materiality is identified when an impact either triggers or is reasonably expected to trigger significant financial consequences. This includes risks or opportunities that could materially influence future development, financial position, performance, cash flows, access to finance, or cost of capital. All impacts must be evaluated over the following timeframes:
The process for identifying material impacts must be documented in accordance with IRO-1, which outlines the methodology for assessing material impacts, risks, and opportunities.
One Click LCA’s CSRD solution simplifies materiality determination based on your input. One Click LCA advises AEC and manufacturing businesses to include climate change, resource use, and circular economy as material impacts.
| Indicator | Reporting content | Quantification tools |
| ESRS E1-1 | Transition plan to reach climate neutrality by 2050, including mitigation actions and decarbonization levers | Carbon Designer 3D allows quick optioneering for various scenarios |
| ESRS E1-4 | Greenhouse gas (GHG) emission reduction targets for Scope 1, 2, and 3 GHG emissions, separately or combined | GHG Accounting Tool and Carbon Strategy Tool |
| ESRS E1-6 | Gross Scope 1, 2, 3, and total GHG emissions, including emissions from each significant Scope 3 category | GHG Accounting Tool and Carbon Strategy Tool |
| ESRS E2-4 | Pollution of air, water, and soil — quantification of pollutants (e.g., ozone-depleting substances, acidification, eutrophication) | LCA tools quantify internal and supply chain pollution. |
| ESRS E3-4 | Water consumption — quantify water use | LCA tools measure freshwater use and water scarcity |
| ESRS E4-5 | Impact metrics related to biodiversity and ecosystem changes, including land use and biodiversity stress | Biodiversity Supply Chain Tool and LCA tools support these calculations |
| ESRS E5-3 | Targets for resource use and circular economy—circular materials, primary materials, and sustainable sourcing | Building Circularity Tools and full-spectrum LCA tools quantify these targets. |
| ESRS E5-4 | Resource inflows — technical and biological masses; share of sustainably sourced materials; weight and percentage of secondary reused, recycled components, intermediary products, and materials | Building Circularity Tools and full-spectrum LCA tools quantify these targets. |
The following two standards are mandatory for reporting: ESRS 1 (General Requirements) and ESRS 2 (General Disclosures).
One Click LCA’s CSRD compliance solution guides users in answering specific questions about these standards. Additionally, ENVI-met facilitates the quantification of climate adaptation risks related to heat stress, heat waves, and temperature variability for ESRS 2 IRO-1.
ESRS specifies the minimum requirements and a standardized template for the sustainability statement. This statement must be published either concurrently with or as part of the company’s management report.
One Click LCA’s CSRD compliance solution automatically generates the required documentation based on your input.
Sustainability statements must undergo an audit, with the minimum level being limited assurance. The statutory auditor typically performs the audit, but other authorized auditors in EU member states may also undertake the task. The statutory auditor is required to present the findings in an assurance report, along with an opinion aligned with assurance standards adopted by the European Commission.
One Click LCA’s CSRD compliance software simplifies the audit process by ensuring a clear data trail, reducing communication overhead, and minimizing data transfer burdens.
CSRD reports must also be submitted in a machine-readable format with data tagged for automated processing. This technical format is based on XBRL and adheres to the European Single Electronic Format (ESEF) standards.
One Click LCA’s CSRD compliance software automatically generates these machine-readable files to ensure seamless submission.