Business Situation
With the introduction of the Corporate Sustainability Reporting Directive (CSRD), the client needed to transform its ESG reporting approach to align with the evolving European Sustainability Reporting Standards (ESRS).
Operating across multiple entities and geographies, the client aimed to:
- Align disclosures across E1–E5, S1–S4, and G1 standards
- Operationalize double materiality assessments (impact and financial)
- Build a scalable, audit-ready ESG data infrastructure
- Ensure year-on-year comparability across reporting cycles
Challenges included fragmented ESG data, inconsistent methodologies, and rapidly evolving EFRAG guidance, impacting the client’s ability to deliver timely and compliant disclosures.
SGA Approach
SGA partnered with the client to develop a scalable and regulation-ready CSRD reporting ecosystem, combining domain expertise with AI-enabled workflows.
Regulatory Alignment and Readiness
- Conducted workshops across multiple entities and regions
- Enabled end-to-end double materiality assessment aligned with ESRS
- Defined reporting scope, timelines, and assurance requirements
AI-Enabled Data Aggregation and Validation
- Aggregated 100+ ESRS-aligned data points across ESG themes
- Leveraged AI-powered data extraction to process large volumes of disclosures efficiently
- Implemented a Human-in-the-Loop (HITL) validation layer, where ESG domain experts reviewed complex, judgment-based datapoints
- Ensured high accuracy, contextual interpretation, and full source traceability
- Standardized historical ESG datasets for year-on-year comparability
Framework Development and Integration
- Developed ESRS-mapped datasets and reporting templates
- Integrated EU Taxonomy metrics into reporting workflows
- Delivered customizable SOPs and integration-ready outputs
- Provided real-time updates aligned with evolving EFRAG and ESRS guidance
Key Takeaways
Regulatory Alignment: Enabled full alignment with CSRD and ESRS requirements across multiple entities and reporting units.
Audit Readiness: Delivered 100% traceable, audit-ready ESG datasets – strengthened through expert-led validation.
Data Standardization: Standardized 100+ ESG data points, ensuring consistency and comparability across reporting cycles.
AI + Expertise: Integrated AI-led data extraction with expert-in-the-loop validation to ensure depth, precision, and reliable interpretation.
Operational Efficiency: Improved reporting efficiency through automation-led workflows, significantly reducing manual effort.
