Automated ESG Reporting and CSRD Compliance

Environmental, social, and governance (ESG) reporting is a complex and vital task. Avoiding regulatory fines and reputation risks is an ongoing challenge—due to insufficient data quality, numerous information silos, etc. Streamline your compliance with Corporate Sustainability Reporting Directive (CSRD) by automating sustainability data collection, analysis, and reporting.

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How can we help?

Our services cater to EU-based and third-country enterprises with subsidiaries in the European Union subject to CSRD but lacking a compliant ESG reporting system.

ESG reporting software development

Altoros can help you to build a reporting system that facilitates the transparent disclosure of nonfinancial data related to your environmental impact, social responsibility, governance practices, etc. By employing these tools, businesses can effectively track, measure, and analyze key sustainability metrics, making data-driven decisions that align with ESG goals.

Integration

Seamlessly integrate a newly created ESG reporting system with your financial infrastructure, connecting disparate sources. Enhancing your ESG reporting accuracy and transparency, leverage your existing system's strengths while adapting it to fulfill financial data requirements.

Data analytics

With custom data analytics tools, you can unlock invaluable insights from your business’s ESG data to fuel well-informed sustainability strategies. With a data-driven approach, confidently steer your organization toward responsible practices that resonate with stakeholders and enhance your environmental impact.

Cloud-enabled development

Altoros develops cloud-based sustainability solutions to set up robust ESG programs—while streamlining data collection, reporting, and risk management. Embrace scalability and agility, customized to align with your unique sustainability goals.

Why does CSRD compliance matter?

Improved transparency and trust

By providing detailed ESG information disclosure, you can establish increased trust with stakeholders.

Decreased costs

Adopting sustainable practices helps to cut energy and waste expenses, as well as steer clear of potential fines.

Competitive advantage

CSRD compliance can differentiate companies, attracting more investors, customers, or talent, and potentially positioning organizations ahead of future regulations.

Better risk management

By effectively identifying and managing ESG risks in advance, you can safeguard your business.

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Overcoming CSRD compliance challenges

Problem #1: Data handling complexities

Numerous firms face difficulties in meeting CSRD's requirements related to gathering, management, and reporting nonfinancial data due to the lack of an integrated solution. This can complicate compliance and lead to errors or delays.

Solution: Efficient data collection and management

Advanced cloud-based CSRD compliance systems can help businesses to timely gather, organize, and report data, in a scalable way. By focusing on data quality and ensuring proper visibility, we will assist you in minimizing inaccuracies, fostering more efficient data collection and management.

Overcoming CSRD compliance challenges

Problem #2: Integration struggle

Incorporating new ESG reporting systems into existing environments may require restructuring IT infrastructures and costly upgrades, leading to disruptions and resource constraints.

Solution: Seamless integration

Utilize API-based connections to effortlessly pull information from existing systems, such as ERP and CRM platforms, ensuring smooth ESG data flow without disruptions. Create a unified view of your corporate data, avoiding inconsistencies and making sure you report reliable, up-to-date information.

Overcoming CSRD compliance challenges

Problem #3: Resource-intensive learning curve

New ESG reporting standards demand staff education to understand, implement, and maintain these requirements, posing a time-consuming and resource-intensive challenge.

Solution: Training and support for CSRD compliance

We provide comprehensive training and ongoing assistance to your teams, ensuring they grasp CSRD compliance complexities and handle reporting efficiently. Rely on our solid data integration and reporting expertise gained from numerous financial and business intelligence (BI) projects.

Overcoming CSRD compliance challenges

Problem #4: Ensuring data validation

Nonfinancial CSRD statements require rigorous auditing by independent third parties, which can be complex and resource-demanding to guarantee the validity and reliability of the data. However, without these, an organization can be accused of reporting false information or greenwashing.

Solution: Automated verification minimizing human error

Advanced algorithms can help you to cross-reference ESG data with authoritative sources in real time, ensuring accuracy and reliability without excessive resource demands.

Overcoming CSRD compliance challenges

Problem #5: Noncompliance risks

Noncompliance with the CSRD regulations exposes companies to severe penalties, including fines, reputational damage, and legal actions. Staying compliant is crucial to safeguarding your business from financial and other risks.

Solution: Mitigating risks in advance with compliance tools and strategy

We assist in implementing a comprehensive strategy that ensures strict compliance with the CSRD regulations. Utilize real-time monitoring and predictive analytics to proactively identify potential breaches and anomalies in financial and ESG data patterns, taking corrective actions before issues escalate.

Overcoming CSRD compliance challenges

Problem #6: Tight timelines

As CSRD reporting deadlines rapidly approach, companies must submit their reports starting from January 1, 2025, which leaves little time to enact the necessary changes.

Solution: Timely implementation and automation

Following Agile practices and ensuring effective communication, we work in frequent iterations. By combining automated BI reporting via real-time API-based integration with established development practices, you can expect first deliverables within 4–6 weeks from the project start. Implementing CI/CD pipelines, automated testing, and cloud-based tools, Altoros will accelerate the development and deployment of necessary changes. After delivery, our experts are available to provide ongoing support and maintenance for your system.

Why choose Altoros as a CSRD compliance solution provider?

PROVEN TRACK RECORD

With 350+ experts and 20 years of experience working with cutting-edge technologies, Altoros can deliver development services tailored to your specific business needs. Having worked with hundreds of projects either for the financial/banking sector, or for the reporting needs (or both), we have an established methodology aimed to maximize delivery.

SOLID BI AND DATA MANAGEMENT EXPERTISE

Our track record includes successful projects handling up to hundreds of different data sources. This included enterprise reporting systems, data warehouses, ETL tools, data quality initiatives, migration strategies, etc.

SECURITY AND PRIVACY COMPETENCE

Altoros has vast experience in implementing measures to prevent data breaches, leaks, or corruption. Our experts will help you to utilize robust encryption, firewalls, intrusion detection systems, role-based access control, and automated backups to keep your information safe.

PROFICIENCY IN REBUILDING LEGACY SYSTEMS

We have decades of expertise in refining and integrating existing legacy software systems, ensuring seamless implementation of the new solution.

TRACKING CUTTING-EDGE TECHNOLOGIES

Altoros utilizes the latest technology and tools to develop advanced CSRD compliance solutions helping you to enhance your operational efficiency and data management/reporting.

SCALABILITY IN MIND

Using cloud-based architectures, we’ve been designing reporting systems that efficiently handle growing data volumes and dynamically scale to accommodate increased loads. Having worked with modular systems and microservices for years, our experts will help you to effortlessly add new data sources or adjust reporting tools as your needs evolve.

MAINTENANCE AND SUPPORT

With every project, Altoros is committed to providing ongoing maintenance and support, ensuring that your compliance solutions remain current and in line with any CSRD updates.

Related cases

With 1,420 projects delivered across 30+ countries, we have the expertise to help your company achieve CSRD compliance. Get in touch with us to start your transformation journey.

12m→10s

cutting analysis time

99%

automated report precision

Energy

Internet of Things

Utility

New-Generation Energy Management System

Altoros assisted Galtronics Group in developing symHome, an energy management system that can record, store, and process power consumption data from every major appliance in a house.

4,000

houses connected to the system

50,000

records processed every 15 sec

FinTech and Banking

Using ML, OCR, and RPA to Automate the Processing of Financial Reports

Developers at Altoros implemented a searchable database to easily access and search through the information contained in PDF reports.

450,000

vendors' database managed

100%

contract compliance accuracy

Government

Legal Services

A Compliance Monitoring, Reporting, Search, and Project Management System

The solution enables compliance monitoring by providing an easy way for contractors to submit periodic invoices/reports to compliance checking officials.

$10M+

funding raised with our system

Oil and Gas

Improving Equipment Monitoring and Maintenance

A provider of process safety solutions turned to Altoros to build a system for efficient monitoring and maintaining of equipment at a gas plant.

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Frequently asked questions

What is the CSRD?
The Corporate Sustainability Reporting Directive (CSRD) is a regulation imposed by the EU that obliges companies to collect, analyze, and report sustainability data. The goal is to provide stakeholders, including investors, with better insight into organizations' environmental, social, and governance (ESG) performance. A successful ESG report should encourage companies to develop more responsible approaches to business, boiling down to efficient data collection—a task that many organizations find challenging. Similar to the financial reporting process, ESG disclosures entail both quantitative and qualitative data, such as metrics on carbon emissions and energy usage, as well as narratives about employee well-being initiatives and community engagement.
Which companies must comply with CSRD?
The directive applies to listed companies, large companies with €40 million turnover and/or €20 million total assets and/or 250 or more employees, and third-country companies with subsidiaries in the EU. The CSRD increases the number of companies required to comply with ESG reporting from nearly 12,000 to 50,000.
When do companies have to start complying with CSRD?
Existing companies under the Non-Financial Reporting Directive (NFRD) will start reporting under the CSRD from January 1, 2025 on data from 2024. Large companies not currently subject to will start reporting from January 1, 2026 on 2025 data. Listed SMEs, small and noncomplex credit institutions and captive insurance undertakings will start reporting from January 1, 2027 on data gathered in 2026. Finally, third-country undertakings with net turnover above €150 million in the EU will start reporting from January 1, 2029 on 2028 data.
What are the penalties for noncompliance with the CSRD?
Noncompliance with the CSRD could result in significant penalties—including fines, imprisonment, reputational damage, and potential legal actions. Companies that fail to report and comply with the CSRD face fines of up to €10 million or 5% of their annual revenue.
How can Altoros help in achieving CSRD compliance?
Altoros offers the development of custom software that automates the collection, analysis, and reporting of sustainability data, ensuring compliance with CSRD standards. Coupled with expert consultancy and strategic analysis, we offer seamless integration and adaptation to evolving regulations.
Will the software have the capability to adjust to future changes in CSRD regulations?
Absolutely. Altoros can design CSRD applications to be flexible and adaptable by introducing approaches such as a modular architecture, domain-driven design, 12-factor apps (microservices), etc. This ensures easier incorporation of future updates and modifications to accommodate evolving CSRD compliance regulations or your company’s requirements.