[00:00:00] Delfin Vassallo:
Welcome to The Urbanista, where we discuss water management challenges in Nordic cities. From safe drinking water distribution to stormwater collection and building sustainable urban living environments, I’m your host, Delfin Vassallo.
Today, we’re revisiting the European Union’s Corporate Sustainability Reporting Directive—CSRD. It’s been a hot topic throughout 2024, and now, as the year wraps up, the discussion is only growing.
We last talked about CSRD in February during Episode 25. But with ongoing developments, we thought it was the perfect time to revisit the topic and explore how companies are adapting. Joining us again is our go-to expert on CSRD, Ella Tanskanen. Ella, welcome back!
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[00:01:15] Ella Tanskanen:
Thanks, Delfin! I’m Ella Tanskanen, Head of Sustainability Services at Greenstep, and I’m thrilled to be here again. CSRD is definitely a crucial topic for many businesses right now, especially as they prepare for mandatory reporting.
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[00:01:45] Delfin Vassallo:
Ella, let’s start by addressing how this year has been for sustainability professionals. With CSRD preparation well underway, what has stood out the most?
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[00:02:00] Ella Tanskanen:
It’s been an intense year, and 2025 will be equally challenging. CSRD introduces new regulations and concepts, such as double materiality and mapping the value chain, which are both critical for compliance. It’s a steep learning curve for businesses, but the effort is essential to ensure they’re on the right track.
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[00:03:00] Delfin Vassallo:
For listeners who are new to CSRD, can you briefly explain what it is and who it impacts?
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[00:03:15] Ella Tanskanen:
Sure! CSRD stands for the Corporate Sustainability Reporting Directive. It establishes a more structured, transparent, and comparable way of sustainability reporting.
Initially, it applies to large listed companies, banks, and insurance entities. By 2025, it will also include large non-listed companies that meet two of the following criteria:
• Over €50 million in revenue
• Over €25 million in balance sheet total
• More than 250 employees
Additionally, smaller companies working with these large entities will be indirectly affected as they may need to share sustainability data.
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[00:04:45] Delfin Vassallo:
Let’s dive into the steps for CSRD compliance. How should companies start preparing?
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[00:05:00] Ella Tanskanen:
The first step is mapping your value chain. This involves identifying upstream and downstream impacts, as CSRD requires companies to consider their entire value chain, not just their direct operations.
Next is conducting a double materiality assessment. This means evaluating:
1. Impact materiality: How your company impacts the environment, society, and people.
2. Financial materiality: How external factors like climate change affect your business.
Finally, a gap analysis helps identify what data you already have and what you still need to collect for compliance.
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[00:06:30] Delfin Vassallo:
Some CEOs I’ve spoken with feel they’re spending more time on reporting than acting. How can companies balance compliance with meaningful action?
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[00:06:45] Ella Tanskanen:
That’s a common challenge. Companies should allocate both internal resources—those who understand the business—and external advisors who can guide them through the complexities of CSRD. Starting early ensures a smoother process and helps build internal expertise for long-term success.
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[00:08:15] Delfin Vassallo:
Once companies complete their reports, how can they use them beyond compliance?
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[00:08:30] Ella Tanskanen:
These reports are valuable internally and externally. They provide clarity on sustainability goals, enhance employer branding, attract investors, and help benchmark progress against industry peers. They’re also great tools for internal engagement, showing employees the company’s commitment to sustainability.
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[00:09:45] Delfin Vassallo:
That’s a fantastic perspective. As we wrap up, can you summarize the steps companies should take to prepare for CSRD?
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[00:10:00] Ella Tanskanen:
Of course! Here’s a quick recap:
1. Map your value chain—upstream and downstream.
2. Conduct a double materiality assessment, considering both impact and financial materiality.
3. Perform a gap analysis to identify the data you need versus what you already have.
4. Start collecting and aligning your data now, keeping in mind the grace period for some data points.
Starting early will save time and effort in the long run.
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[00:11:30] Delfin Vassallo:
Thanks so much, Ella. Your insights have been incredibly helpful. We’ll definitely revisit this topic in 2025 as new updates roll out.
To our listeners, thank you for tuning in to The Urbanista. If you found this episode useful, share it with your colleagues. Together, we can move the industry forward.
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Outro:
The Urbanista Podcast is a production of Uponor Infra, the leader in sustainable infrastructure solutions.
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