How to Convince Your Board to Prioritize the CSRD

The CSRD isn’t just another box to tick. It’s a game-changer that redefines how companies operate.

The EU’s aim with this directive is clear: to ensure that sustainability reports match the rigor, reliability, and auditability of financial reports.

We’re not talking about a minor adjustment, like GDPR. This is as significant as introducing VAT or filing annual accounts.

One key change: sustainability reporting must now be integrated into your consolidated management report, held to the same standards and audits as financial statements.

Is your leadership team ignoring the CSRD? Here’s how to change that.

The CSRD: A Cross-Department Challenge

Quality, IT, HR, Marketing, Legal, Procurement, Compliance, Finance — everyone has a role to play in the CSRD. This is no longer just a Sustainability team task.

What does this mean? It can’t be tackled in isolation. The CSRD impacts the entire organizational structure, and if your leadership team doesn’t see its company-wide importance, they won’t prioritize it.

Here’s a snapshot of how each department contributes:

• Sustainability, Environment, or ESG: Likely responsible for the report itself, including nearly half (544) of the CSRD’s data points focused on environmental topics such as pollution and biodiversity.
• Human Resources: Critical for social and governance data, with 448 data points tied to diversity, training programs, wages, and employee well-being.
• Legal or Compliance: Ensures the accuracy and validity of all data submitted.
• Finance: Plays a key role in aligning financial information with non-financial disclosures, ensuring a comprehensive ESG strategy.
• Quality or Audit Teams: Validates data and conducts ESG risk assessments.
• Communications: Crafts campaigns to showcase the company’s commitment to sustainability.
• IT: Helps choose sustainability management tools and manage data exports.
• Procurement: Gathers critical supplier-related data for the CSRD’s stakeholder focus.

Yes, You Need Leadership Buy-In

Now that you know the CSRD impacts the entire company, you might wonder: How do I get leadership on board?

The key is securing their buy-in. Without it, there’s no budget, no visibility, and—most importantly—no commitment.

If you’ve tried but feel stuck, you might not be speaking their language. Leadership isn’t typically focused on compliance—it’s not their priority. That’s your expertise.

Their focus? Growing revenue, increasing market share, and improving customer satisfaction—all while reducing costs and risks. Right now, the CSRD likely feels like just another expense.

Your challenge is to show them that investing in the CSRD doesn’t just minimize risks and enhance reputation—it opens new opportunities and revenue streams. Sound more interesting now?

The CSRD isn’t just about sustainability; it’s strategic. And leadership understands strategy.

4 Reasons Leadership Should Prioritize the CSRD

Penalties Are Real:

Look, we're going to be honest with you: although the financial penalties for not submitting the CSRD report are serious (up to 2% of turnover or €1M), we know that no company will risk not submitting the information. And this is not just about financial penalties, but also administrative ones, individual responsibility, and reputational risks.

The real trap lies in the lighter penalties, those for minor mistakes or delays. And yes, that can — and will — happen. Do you think they aren't that important? They are, and very much so.

Errors like incorrect data, miscalculations, or insufficiently justified information can result in fines of up to 1% of turnover. I’m sure that both you and your management committee would prefer to protect that value, especially knowing that there are clear and accessible solutions.

It can affect your revenue:

Restrictions on public contracts and tax benefits, lower scores compared to other companies when it comes to securing financing… Yes, all of this can happen if you fail to submit or improperly submit a CSRD report.

Furthermore, complying with the CSRD is not only important for regulatory bodies, but also for investors, employees, and stakeholders. Companies that do not align with ESG regulations will lose business opportunities.

You are late:

The clock is ticking, and the longer you delay, the harder it will be to meet the deadlines for reporting in the first quarter of 2026.

The average time companies take to manage the entire CSRD project is approximately 13 months. Yes, more than a year.

Based on our experience, here are the estimated timeframes for each stage:

• Double Materiality Assessment and IROS: 3 months (may vary depending on the ease of involving the value chain).
• Gap Analysis: 1 month.
• Creation of policies, actions, metrics, and targets (PAMT): 5 months. (Do you already have everything measured and policies created? Great! If not, this process can take quite a while. The sooner you start measuring your environmental metrics, the better).
• Completing datapoints and drafting the report: 2 months.
• Taxonomy and verification: 2 months.

Reputation:

In an increasingly aware market, failing to comply with sustainability and transparency no longer goes unnoticed. Companies that do not comply with the CSRD may see their public image affected.

It’s not just a matter of complying with the law; it’s a matter of transparency and social responsibility. Consumers and investors already value these types of practices.

Do You Really Need an ESG Data Solution?

As Talgo’s Management Systems Leader said, “The CSRD is no longer a sustainability issue — it’s a data issue.”

If your leadership team questions the need for a solution, here’s how to justify it:

• As we have discussed, an error in the data of your CSRD report is not just a technical failure, it is a serious risk of fines and damage to your reputation. Errors that are minimized and reliable in an ESG solution.
• Build on solid foundations: A clear and well-structured database will make reporting each year easier and safer.
• The CSRD Directive is complex and requires data from your entire value chain. It can be slow and complicated. Having a clear and centralized solution helps you manage that information efficiently, without losing control.
• Do you remember your Annual Accounts Audit, the one that always drives you crazy? Here is a key difference with the EINF: the CSRD requires your report to be verified by ICAC auditors, the same body that conducts the account audit. If the report doesn’t pass verification… you know what happens: more time and, as always, time is money. With a comprehensive ESG solution, you guarantee the quality of your data throughout the process, allowing you to face the audit successfully.

Tips for Speaking Leadership’s Language

Getting leadership buy-in isn’t easy, but here’s how to make your case effectively:

1. Find a champion within the committee: if you manage to get at least one member of the committee to be your advocate, you’ll have an ally to open doors.
2. Inspire and share: you are the expert. The key to convincing them is to continuously train them. Give brief presentations on specific topics to show what other companies are doing and how it has benefited them.
3. Don’t talk about costs, talk about investment: The CSRD is an investment that will protect the company from penalties, improve the image, and open new business opportunities. Replace the words cost with investment and probability with risk.‍
4. Turn risks into opportunities: directors want to minimize risks. If you explain how the CSRD helps reduce legal, reputational, and financial risks, they will see it as an opportunity rather than a burden.
5. Use data and metrics: show with numbers how implementing the CSRD will help achieve the company’s objectives.

We Can Help Your Leadership Team Get It

Convincing your leadership team to prioritize the CSRD doesn’t have to be a challenge. With the right arguments, a clear approach, and consistency, you can help the team understand that this isn’t just a regulation but a strategic opportunity to move forward.

If this resonates with you and you’re looking for support to tackle the CSRD Directive, we’re here to help. We know the language of leadership, your situation, and what this directive entails. What else do you need?

We’ll come to your office, have a coffee with your leadership team, and I promise they’ll leave as true CSRD experts. Talk to us through this form. Let’s go together.