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Getting Started with CSRD

The Corporate Sustainability Reporting Directive (CSRD) requires companies to report on sustainability matters using the European Sustainability Reporting Standards (ESRS). Unlike other compliance frameworks, CSRD starts with a mandatory first step you cannot skip: the double materiality assessment (DMA). The DMA determines which topics you are required to report on. Everything else follows from it.
To activate CSRD in Matproof, go to Settings → Frameworks → CSRD and click Activate. This unlocks the DMA tab and CSRD Report tab under Vendors.

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Am I in Scope?

CSRD uses a phased rollout. Use this checklist to determine your reporting obligation: Wave 1 — Reporting from 2025 (FY 2024 data)
  • Large public-interest entities already reporting under NFRD
  • 500+ employees
Wave 2 — Reporting from 2028 (FY 2027 data)
  • Large EU companies not previously under NFRD
  • Meets 2 of 3: 250+ employees, €50M+ net turnover, €25M+ total assets
  • Postponed by 2 years under the Stop-the-Clock Directive (EU 2025/794)
Wave 3 — Reporting from 2029 (FY 2028 data)
  • Listed SMEs (with opt-out until 2030)
Wave 4 — Reporting from 2030 (FY 2029 data)
  • Non-EU companies with €150M+ EU net turnover and an EU subsidiary or branch
  • The EU Omnibus Simplification Package proposes raising this threshold to €450M. Check current status before planning.
Regulatory timeline alert: The Stop-the-Clock Directive (EU 2025/794), adopted April 2025, postponed Wave 2 and Wave 3 by two years. The EU Omnibus Simplification Package may further change scope and requirements. Always verify current timelines before planning your reporting cycle.
If your parent company is in scope, your entity may be required to provide data even if you individually fall below the thresholds. Check your group consolidation structure.

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The 6-Step CSRD Workflow in Matproof

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Step 1 — Complete the double materiality assessment
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Navigate to Vendors → CSRD DMA tab.
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The DMA evaluates each ESRS topic across two dimensions:
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  • Impact materiality — Does your business cause positive or negative impacts on people and the environment?
  • Financial materiality — Do sustainability matters create risks or opportunities that affect your financial position?
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    A topic is material if it is significant on either dimension. You must report on all material topics.
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    Work through each ESRS topic area in the DMA tab and record your assessment. Involve your CFO (financial materiality) and sustainability lead (impact materiality) in this step — regulators expect evidence of cross-functional input.
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    Start with the topics most likely to be material for your sector. For manufacturing, these are typically E1 (Climate Change), S1 (Own Workforce), and G1 (Business Conduct). For financial services, add E4 (Biodiversity and Ecosystems) and S2 (Workers in the Value Chain).
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    Step 2 — Identify your material ESRS topics
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    Once the DMA is complete, Matproof generates your material topic list — the specific ESRS disclosure requirements you are obligated to report on.
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    Review this list carefully. For each material topic you will need:
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  • A policy or target
  • Quantitative performance data (where required by the standard)
  • Supplier data for value chain topics (E1, S2, S3, S4)
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    ESRS 2 (General Disclosures) is mandatory for all in-scope companies regardless of DMA results. It covers governance, strategy, and risk management disclosures.
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    Step 3 — Map your suppliers
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    Go to Vendors and ensure all relevant suppliers are added to your vendor list. For CSRD purposes, “relevant” means suppliers that:
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  • Contribute to your Scope 3 emissions categories
  • Fall within material value chain topics (e.g., S2 if you have overseas manufacturing)
  • Are significant by spend or volume
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    Assign each supplier a CSRD relevance tag so questionnaires are targeted correctly.
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    Step 4 — Send supplier questionnaires
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    From Vendors, select the suppliers tagged for CSRD and send the CSRD Supplier Questionnaire.
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    The questionnaire covers:
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  • GHG emissions data (Scope 1, 2, and relevant Scope 3 categories)
  • Social metrics (workforce data, working conditions)
  • Governance disclosures if required by your material topics
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    Track response status in the Vendors → CSRD DMA tab. Matproof shows you a response rate per questionnaire batch.
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    Improving supplier response rates:
    • Send a personal email to your procurement contact before the automated questionnaire lands — a heads-up doubles response rates
    • Set a firm deadline (3 weeks works better than open-ended)
    • Offer a 30-minute call for suppliers who are confused — most questions come from the same 2-3 items
    • For non-responsive critical suppliers, escalate through your commercial relationship manager
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    Step 5 — Collect and validate Scope 3 data
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    Scope 3 has 15 categories. Most companies only need data for:
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    CategoryDescriptionTypical sourceCat 1Purchased goods and servicesSupplier questionnairesCat 4Upstream transportation and distributionLogistics providersCat 11Use of sold productsProduct lifecycle data
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    You are required to report on Scope 3 categories that are material under your DMA. If Cat 11 is not material for your business (e.g., you sell B2B services), you do not need to report it — but document your reasoning.
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    Enter or import your Scope 3 data in Vendors → CSRD DMA tab → Emissions Data. Matproof validates entries and flags gaps before report generation.
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    Step 6 — Generate the ESRS report
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    Once your DMA is complete, supplier data is collected, and Scope 3 is entered, go to Vendors → CSRD Report tab.
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    Click Generate ESRS Report. Matproof produces a structured report aligned to ESRS disclosure requirements for your material topics.
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    Review the generated report for:
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  • Missing data fields (shown in red)
  • Topics where you have a policy gap
  • Metrics that require additional narrative explanation
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    Export the report in PDF or XBRL-tagged format for your statutory filing.

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    The Four Things Teams Get Wrong

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    1. Not knowing if they’re in scope

    The phased rollout and group consolidation rules create genuine confusion. Before spending time on the DMA, confirm your wave and check whether your parent entity’s scope affects your obligations.

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    2. Starting the DMA without the right stakeholders

    The DMA is not a compliance checkbox — it is a business decision about what your company considers material. Completing it without input from Finance, Operations, and Legal produces assessments that won’t survive auditor scrutiny. Budget 2-3 working sessions with cross-functional leads.

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    3. Sending supplier questionnaires without preparation

    Suppliers receiving a sustainability questionnaire cold — no context, no deadline, no contact — respond at rates below 20%. A brief outreach from your procurement team before the questionnaire lands consistently achieves 50-70% response rates.

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    4. Reporting on all 15 Scope 3 categories by default

    Teams assume they need all 15 categories and get paralyzed. Your DMA determines which Scope 3 categories are material. For most companies outside heavy industry, three categories (Cat 1, Cat 4, Cat 11) cover 80-90% of the required disclosure.

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    What a Completed CSRD Module Looks Like

    A complete CSRD implementation in Matproof should have:
    • DMA completed with all ESRS topics assessed and materiality decisions documented
    • Material topic list reviewed and signed off by a senior stakeholder
    • All relevant suppliers mapped and tagged in Vendors
    • Supplier questionnaires sent with at least one follow-up round completed
    • Scope 3 data entered for all material categories
    • ESRS report generated with no red (missing data) fields remaining
    • Report exported and ready for external assurance review
    Limited assurance is required from the outset for all in-scope companies. The transition to reasonable assurance depends on the Commission adopting standards by October 2028. Matproof’s completeness tracking helps you prepare, but assurance levels are determined by your auditor’s methodology, not by a data completeness score.

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    ESRS Topic Reference

    ESRS StandardTopicCommonly Material For
    ESRS 2General DisclosuresAll companies (mandatory)
    E1Climate ChangeAll sectors
    E2PollutionManufacturing, chemicals, agriculture
    E3Water and Marine ResourcesFood, beverages, textiles
    E4Biodiversity and EcosystemsAgriculture, forestry, real estate
    E5Resource Use and Circular EconomyRetail, packaging, electronics
    S1Own WorkforceAll companies
    S2Workers in the Value ChainCompanies with global supply chains
    S3Affected CommunitiesExtractives, infrastructure
    S4Consumers and End-usersConsumer goods, financial services
    G1Business ConductAll companies

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    Next Steps