Those who do a test ESG report will not be surprised. The auditors are already asking for them

For holding companies with complicated structures, getting the 2025 ESG reports right will be challenging, which is why in recent weeks we have heard calls from a number of auditors for early preparation in the form of an unregulated 2024 sustainability report now.

The CSRD (Corporate Sustainability Reporting Directive) on sustainability reporting affects more than a thousand large companies in the Czech Republic alone, which will have to report for the first time in 2025. However, auditors are already asking large holding companies in particular for documents, finding out how they are preparing and often recommending that they try everything out in 2024.

Such a move is not just about meeting future obligations, but also about effectively managing business and reputational risks and seizing opportunities related to climate change and sustainability. Early and quality preparation will help keep pace with the market and meet the expectations of investors and other stakeholders. 

But the reporting experts at Frank Bold Advisory warn - if you don't start preparing by the end of the year, you won't have enough room for a trial run the following year. 

What now?

1. Make an unregulated report. Allows you to prepare for the demands of hard-hitting reporting

Get a head start and take inspiration from market leaders such as Philip Morris International or CEZ, who are already being helped by our experts at Frank Bold Advisory to prepare their sustainability reporting in advance.

Early preparation will allow holding companies to better prepare for the demanding requirements of the regulated sustainability report, which will be mandatory from 2025. The 2024 test report will provide sufficient lead time for implementing the necessary processes and data collection, minimizing the risk of conflicts, time delays and other issues in preparing the sharp report.

2. Getting auditors involved early in the test reporting will give you a head start

The requirements for a regulated sustainability report with respect to consolidation will be challenging, so early involvement of auditors in the process from pre-exit is essential. Auditors often require precise preparation of ESG reporting in accordance with ESG and EFRAG implementation guidance. It is also not uncommon to be asked to familiarise themselves with dual materiality and sustainability reports in preparation, even though companies will not be required to report until 2025. 

3. You have the last three to five months, then you have to prepare a regulated report

Time is running out to prepare the test report and if you don't start group reporting in the next 3 to 5 months, you won't have the time to create the 2024 unregulated test report next year. Working on the trial report later could conflict with producing the regulated report, which must cover the entire 2025 financial year. 

4. Put yourself in the hands of experts. We've been there for standards and major projects

Preparing a sustainability report is extensive and complex, so don't be afraid to enlist the support of experts in the field. Whether you need to consolidate dual materiality across the group, even from different sectors, create a consolidated sustainability report or set up an efficient management of the entire sustainability reporting process across the group, you can turn to us. 

Our team includes, among others, EFRAG Sustainability Reporting Board member Filip Gregor, a senior ESG expert at Frank Bold who has been directly involved in the development of standards at European level, and we also work with ESG consultant Mike Jennings, who has implemented major projects together with Filip Gregor.

Frank Bold Advisory's experts have backed up their expertise with a range of practical experience in consolidating reporting for large companies, both at the Czech and global level. Our clients with whom we work on early preparation for sustainability reporting include ČEZ, Shimano, Teplárna České Budějovice, Philip Morris International and Yara International.

Get ahead with ESG reporting

We help companies set up an ESG strategy and prepare ESG reporting in accordance with the new European legislation, thus obtaining key data for their clients, business partners and financial institutions.