The EU’s Corporate Sustainability Reporting Directive (CSRD) requires companies to report on the environmental and climate impacts of their activities. A new feature in Business Central now makes it easier to comply with these requirements.
Companies can now map data records in Business Central to the required taxonomies to prepare their data for reporting in accordance with the Corporate Sustainability Reporting Directive.
Business Central thus supports companies in the European Union in complying with the CSRD by providing taxonomy elements for the European Sustainability Reporting Standards (ESRS) and other frameworks. This feature helps ensure an accurate, transparent, and comprehensive sustainability reporting. The integration of these taxonomy elements ultimately simplifies the reporting process, saves time, and reduces the risk of regulatory violations.
Taxonomies in Business Central can be set up using various transaction data sources. The initial setup is based on sample data, which can be customized to meet specific requirements. Once the taxonomies have been configured, existing data can be aggregated.
When data is aggregated for a specific reporting period, it can be integrated with the ESG reporting tool to prepare it for reporting. Since Business Central does not contain all the data required for CSRD reporting, you can switch to the ESG reporting tool, which provides a preconfigured CSRD template. There, you can add any missing metrics to generate the report file.
This integration is planned to be expanded to other ESG reporting standards in the future.