Today, we’re launching Watershed for CSRD, a new intelligent software solution to help companies comply with ESG reporting requirements under the EU’s Corporate Sustainability Reporting Directive, or the CSRD. More comprehensive and transparent ESG reporting will accelerate the transition to a net zero economy, but for many companies around the world, the CSRD initially presents a massive challenge. They must collect an abundance of data points across dozens of teams, answer hundreds of detailed questions, and compile everything into a cohesive report that will be held to the same standards as their financial reports. Watershed for CSRD helps companies take control over the entire process: control over data collection and measurement; control over report authoring; control over assurance management—all on one complete platform.
The CSRD is the broadest sustainability disclosure requirement in history—consisting of more than 1,100 data points—and will impact more than 50,000 companies around the world. Beginning in early 2025, approximately 12,000 companies will be tasked with publishing CSRD reports based on 2024 data. This leaves less than a year for thousands of companies to prepare these extensive disclosures.
“The CSRD gives no roadmap for how to calculate many of the metrics companies need to disclose. My team helps companies prepare these metrics by developing, standardizing, and validating methodologies that build on the data available to companies today.”
—Dr. Marvin Bachmann, Watershed environmental expert and researcher on climate, pollution, and plastics.
The CSRD holds corporate sustainability data to the same standard as financial data and requires companies to include sustainability metrics in their annual reports. The challenge is that many companies are using spreadsheets and disparate platforms to compile data; in fact, “over one-third of firms do not have the data management capabilities for investor-grade ESG reporting and disclosures'' according to research firm. To comply, finance and sustainability teams will need to work closely together to get clarity on what they must report, manage the data collection process, and have confidence they can pass an external audit. The fastest, most scalable way to meet these challenges is with software.
Watershed named a leader in sustainability management software
Designed with our in-house climate, environmental, and policy experts, Watershed for CSRD is already in use at leading global organisations. With this new solution, companies can:
- Take control over sprawling data collection on one complete platform. Companies will need to start the CSRD reporting process with a double materiality assessment (DMA), which identifies the data that are “material” to your business and, therefore, must be reported. Once you’ve completed your DMA, Watershed for CSRD accelerates your path to compliance by helping you identify gaps between your current dataset and what’s required. Our guided workflows and built-in project management tools streamline collaboration across sustainability, finance, compliance, audit, IT and supply chain teams to ensure you’re collecting all the right ESG data. Watershed’s automated report builder, designed specifically for CSRD disclosure, helps you spot data gaps or inaccuracies, identifies which data types and estimation options (where data isn’t available) are applicable, and tracks progress against each standard within the CSRD, so you can stay on track to meet deadlines.
- De-risk assurance with powerful data governance and audit tools. The CSRD requires limited assurance for all reported data—a baseline level of assurance, wherein an independent audit provider gathers evidence, tests procedures, and evaluates data management processes. Watershed comes with powerful data governance tools, so you can assign roles by data type, set up manual approval chains, and configure automated checks. You can also grant access to external auditors, so they can view data lineage, inspect supporting evidence, review calculation chains, and verify audit trails. Watershed has successfully completed SOC1 and SOC2 examinations, which are critical for financial reporting, and so you can trust your information is managed securely.
- Leverage embedded expertise from Watershed’s policy advisors, partners, and environmental scientists. Watershed has the most comprehensive global emissions database in the market and best-in-class, verified methodologies, so you can calculate reliable metrics. Within the Watershed platform, you’ll find question-by-question guidance from Watershed’s climate, environmental, and policy experts to help you write your answers. You’ll also get access to educational resources and support from our policy team and trusted partners so you can navigate CSRD requirements with ease while building your team’s expertise. Our built-in regulatory check-up also helps you stay ahead of new and upcoming regulations that impact your organisation.
- Maximise value with high-quality interoperable data. With less than 12 months until the first CSRD reporting deadline, efficiency is crucial. Once you’ve collected quantitative data and qualitative responses for your CSRD report, Watershed makes it easy to repurpose them for reports like CDP, ISSB, SEC, and California SB 253/261. This saves you time, ensures you don’t duplicate work, and minimises the risk of mistakes. Watershed also includes tools to help you create custom reports for investors, customers, or annual reporting. Crucially, Watershed for CSRD goes beyond reporting and empowers companies to take action—from analysing sustainability data to inform a decarbonisation strategy, to forecasting the path to net zero, to operationalising sustainability across your business.
“With Watershed, we avoid regulatory risk. We will face much more strict reporting requirements in the EU with CSRD requiring businesses to demonstrate the credibility of data, and having a tool that is audit-ready is a huge asset.”
—Kerri Robinson, Sustainability (ESG) Program Manager at TIP
Hundreds of companies—like BBVA, Spotify, ISS, and General Mills—trust Watershed’s platform and expert network for high-quality emissions tracking, reporting, and decarbonisation. With the addition of Watershed for CSRD, customers are now equipped to meet the most stringent sustainability reporting standards—with the data they need to future-proof their business.
“After decades working in climate, I’m excited at the opportunity that the CSRD presents to companies. The private sector is a pivotal force in mitigating environmental impacts at the speed and scale that we need. As companies begin to understand their data, they will be able to unveil the opportunities to accelerate the transition towards a sustainable economy.”
—Dr. Sangwon Suh, Watershed's Head Scientist and co-author of the Greenhouse Gas Protocol and IPCC Report
