Success on CSRD S1-compliance: From uncertainty to confidence
With a legislative landscape as dynamic and complex as CSRD, reporting on workforce data is very challenging. To tackle this problem, an international insurance leader reached out to Highberg to guide and help them through this new challenge ahead. Fast forward, the first reporting period has been completed as a success, with a trusted, smooth and accurate report on CSRD S1 as the result.
When approaching Highberg for help regarding CSRD S1 reporting, the goal for the client was to get a helping hand on the operational part of reporting, ultimately resulting in a trusted process of retrieving, manipulating and promoting the required data. After assessing the situation, it quickly became clear that the client faced several hurdles that made the reporting challenging.
What is CSRD S1?
The Corporate Sustainability Reporting Directive (CSRD) is a new European Union regulation that requires companies to disclose detailed information about their environmental, social, and governance (ESG) practices. The S1 section focuses specifically on reporting related to the company’s own workforce. This includes data on workforce composition, diversity, working conditions, training and development, and other factors that demonstrate the company’s commitment to social responsibility and transparency. For large organizations with complex structures, fulfilling these requirements is both a challenge and an opportunity to improve workforce management.
Fragmented Data Systems
- The organization’s global operations meant workforce data was dispersed across multiple subsidiaries and systems. Many of these systems were not integrated into the central HR platform, creating silos of unstandardized information. For parts of the organization not covered by the central HR system, data had to be delivered manually—a task complicated by the already high workloads of HR professionals.
Legislative Complexity
- The newness of the CSRD’s S1 requirements left even experienced HR teams navigating uncharted territory.
Stakeholder Coordination
- With multiple internal and external stakeholders involved, ensuring alignment and accountability was critical.
Evolving Requirements
- Looking ahead, the demands for 2025 reporting promised to be even more rigorous, necessitating proactive preparation.
Highberg’s approach
Our mission at Highberg PAR is to empower organizations to become more data-driven in HR. For this client, our approach combined strategy, analytics, and hands-on support to deliver results. Following this strategy the process consisted of 4 steps.
1. Creating a Centralized Data Framework
We began by assessing the client’s existing data landscape, identifying gaps, inconsistencies, and opportunities for integration. Working closely with their HR and IT teams, we helped develop a streamlined framework to gather the necessary data points for S1 reporting. This included integrating data from various subsidiaries into a more cohesive system while accommodating regional nuances.
2. Ensuring Data Accuracy Through Rigorous Testing
Accuracy is at the heart of compliance. To ensure the gathered data met the necessary quality standards, we designed and carried out thorough testing protocols. For data delivered manually by HR professionals, we created a standardized process with built-in validity checks. This not only ensured data accuracy but also saved valuable time for the HR teams, allowing them to focus on their core responsibilities.
3. Stakeholder Engagement and Management
CSRD compliance is not just an HR responsibility; it requires collaboration across functions and geographies. We facilitated communication and alignment between key stakeholders, from subsidiary leaders to compliance officers, ensuring everyone understood their role in the reporting process.
4. Completing the First Annual Run
The first reporting period for 2024 was a critical milestone. By the time the reporting cycle concluded, the client had a robust process in place, giving them confidence in the accuracy and completeness of their data.
The results
- Improved Data Quality
The client achieved significantly higher levels of data accuracy and consistency across their global operations.
- Streamlined Processes
With a centralized framework and clear workflows, the reporting process is now more efficient.
- Enhanced Stakeholder Alignment
Improved communication and collaboration have reduced bottlenecks and ensured accountability at all levels.
- Future-Ready Compliance
The groundwork laid in 2024 positions the client to meet the more stringent requirements of 2025 with confidence.
What this means for your organization
As the complexities of CSRD compliance unfold, organizations are faced with critical questions about their workforce data. Are your systems equipped to handle evolving requirements? Can you confidently verify the accuracy of your data? How well is your organization prepared to foster collaboration across teams and regions to meet reporting demands?
Whether your organization is navigating fragmented data systems, struggling to ensure accuracy, or needing support in managing stakeholders, Highberg can help.
Our expertise enables us to:
- Design tailored solutions to integrate and standardize your workforce data
- Implement rigorous testing protocols to ensure compliance
- Facilitate seamless collaboration across teams and regions
Related Insights
