CSRD Demands A Digital Platform: Why Dairies Need to Get Started Now
The Corporate Sustainability Reporting Directive (CSRD) is a European Union (EU) directive that obligates large and listed companies to share information on how they monitor a wide range of Environmental, Social and Governance (ESG) issues and their impact on the planet.
Dairies need to act now to make a significant change in their reporting. The pace of change in reporting requirements is challenging the dairy industry to adapt and comply with new requirements.
The CSRD is another catalyst for change within dairy operations and dairies need to see it as a driver for digitalisation.
If dairies don’t move away from legacy reporting methods, they will fall behind competitors, lose out on investors and risk not having a future-proofed business model.
Now is the Time for Change
Traditional methods of reporting means dairies are facing challenges when complying with the CSRD. These challenges include accurately collecting and managing data, integration with existing operations, supply chain coordination and a lack of in-house technical expertise.
As reporting requirements around ESG have increased, dairy companies have to move beyond legacy approaches to reporting. Spreadsheet-based reporting or software tools that are not purpose-built for dairies are inefficient, complicated to manage and no longer align with regulatory requirements.
Most legacy reporting tools were not developed to deliver corporate sustainability disclosures and are generic rather than specific to the dairy industry. Dairies now need to go beyond the basics to ensure they’re compliant with the CSRD.
Sustainability Success Isn’t An Option, It’s A Requirement
The fastest, simplest way, to be CSRD compliant and optimise reporting is to adopt a digital solution purpose built for ESG in dairy.
Dairies need to have the right platform and partner to transform their approach to reporting and ensure that their journey to CSRD compliance is simple and seamless.
A partner can:
Automate Data Collection and Integration
Integrate existing systems to ensure a seamless data flow end-to-end, with hardware and software installed for real-time data collection. A partner will help to upskill employees on using new digital tools.
Standardised Reporting Frameworks
A partner with a digital platform will have pre-built templates and frameworks to align with the CSRD requirements. These templates guide dairy businesses on how to structure reports correctly, ensuring all the required metrics are covered and presented in a standardised format.
Provide Real-Time Monitoring and Analytics
Real-time monitoring capabilities allow dairy businesses to track their sustainability performance continuously. Advanced analytics can identify trends, highlight areas for improvement and provide actionable insights which enables dairies to make data-driven decisions that will enhance their sustainability efforts.
Audit and Verification Support
Third-party auditors will verify the accuracy and completeness of sustainability reports. A partner will support dairies in obtaining certifications and endorsements that demonstrate compliance and enhance the business’s reputation.
Accelerate Stakeholder Engagement
A partner can help to develop a communication plan for sharing progress with stakeholders and use digital tools to create accessible reports. The dairy business can then define sustainability practices further with feedback from key stakeholders.
By complying with CSRD, dairy businesses can support the entire ecosystem and enable farmers to help them to meet sustainability KPIs and reduce the overall environmental impact of the dairy industry.
Going Digital Delivers Long-Term Dividends
A digital platform for sustainability will increase transparency and visibility, enhance reputation, improve operations, and mitigate risks.
AgrosMilk is ready to help your dairy business become CSRD compliant. Our seven-step roadmap to sustainability success ensures you meet all the regulations while expanding stakeholder relationships.
CSRD and ESG have to be a priority, are you ready? Get started with our CSRD eGuide: