A key question for many companies in scope for the Corporate Sustainability Reporting Directive (CSRD) is: when is the right time to start preparation? This question is particularly relevant for more than 38,000 large companies required to report for the first time in 2026. Although 2026 might appear sufficiently far into the future to warrant starting later, preparation is key to success as CSRD is a substantial undertaking that can’t be tackled overnight. Below we present the key reasons you should start the CSRD journey now to ensure your organization is ready in time. 

1. The large volume of requirements results in managing multiple sizable projects

The CSRD encompasses a wide range of responsibilities including performing a double materiality assessment, data collection and reporting in line with the European Sustainability Reporting Standard (ESRS), reporting against the EU Taxonomy, publishing electronically tagged information, and having sustainability information externally assured. In practice, this means implementing several workstreams that can each take months to complete.

For instance, we have seen the double materiality assessment alone taking between 2 and 12 months to complete, depending on the size and complexity of the business involved. Considering that many companies have few (or even no) fully-dedicated resources working on sustainability, projects must be well sequenced to ensure progress alongside other responsibilities.   

2. There is no single path to compliance with CSRD

Understandably, we often hear organizations asking for a concrete list of actions that will result in compliance with CSRD. Unfortunately, there is no single set of repeatable actions set out in CSRD that will work for every organization, and parts of the requirements are abstract or not finalized yet. For instance, the latest guidance from EFRAG on double materiality explains that the rules “do not mandate a specific process or sequence of steps to follow when performing the materiality assessment, and so this is left to the judgement of the undertaking”. Requirements for reporting against sector standards have been postponed until mid-2026.

The XBRL taxonomy required for organizations to digitally tag their sustainability information is still being finalized and will not be in force until 2025. Additionally, it’s worth noting the journey to compliance also significantly depends on the organization’s own structure and strategy, including how sustainability responsibilities are allocated and resourced. As a result, organizations should factor time to stay informed of regulatory and market developments that emerge mid-process, and find their unique path to CSRD compliance. 

3. Data reflects the previous year’s performance, and it might not be available

Just like financial reports, sustainability reports cover data from the previous year. For instance, organizations reporting in 2026 would cover the period of January to December 2025 (if following the calendar year for reporting). Therefore, data systems should already be in place to track all required data over the course of 2025. However, if you are setting up a sustainability data system for the first time, you are likely to have significant data gaps especially for harder to measure metrics like carbon emissions. In this scenario, 2024 is effectively the last opportunity for a ‘trial run’ that can allow you to learn and close any gaps before the real exercise. 

4. True sustainability requires urgent action beyond compliance

Companies that are committed to making real progress on sustainability will have to go beyond reporting obligations and invest effort into driving measurable changes. For instance, companies that seek to rapidly decarbonize could consider delving deeper into planetary boundaries and science-based target-setting, increasing their use of renewable energy, engaging deeply with suppliers to reduce emissions in the supply chain, redesigning products or services, and so on. Behind the scenes of any sustainability report demonstrating real and measurable progress is a story of team collaboration, personal commitment, and continual hard work to drive meaningful outcomes.  

5. Demand for your sustainability data is already high

In addition to incoming regulatory requirements, demand for sustainability data is already originating from key stakeholders like investors and customers, typically with a fast turnaround expectation. Investors in scope for the Sustainable Finance Disclosure Regulation are often requesting data from portfolio companies to help meet their own reporting obligations, with common metrics being GHG emissions, the gender pay gap, and energy consumption. Companies which form part of the supply chain of large publicly-listed companies are also frequently requested to respond to extensive surveys and data collection requests. Proactively preparing for these inevitable requests for sustainability information will dramatically ease the process and avoid a last-minute rush to respond.   

Overall, our recommendation is to start your CSRD journey as early as possible, factor time for a practice run to generate learnings, and break down the requirements into manageable steps. In our experience, companies that start early are significantly better positioned for both compliance and advancing their overall sustainability performance.