GenAI for CSRD Reporting: A Powerful Assistant, Not a Silver Bullet

While Generative AI (GenAI) holds promise for streamlining CSRD reporting, it's important to manage expectations.  Currently, GenAI can't fully automate CSRD submission creation due to the report's specific format and evolving regulatory landscape.

However, GenAI can be a valuable tool in several ways, so here are a few quick takeaways.

GenAI is a Valuable Tool for CSRD Reporting.

1. Data Gathering and Pre-population:

• Automating Data Collection: GenAI can gather relevant data for CSRD disclosures from diverse internal sources (financial records, energy consumption data, etc.), reducing manual effort and improving accuracy.
• Populating Templates: Leveraging pre-defined CSRD reporting templates, GenAI can populate sections with the extracted data, providing a solid foundation for the report.

2. Enhanced Narrative Generation:

• Drafting Initial Narratives: GenAI can generate initial narratives explaining the data and metrics presented in the CSRD report. Human experts can then refine and tailor these narratives to ensure clarity and alignment with the company's sustainability strategy.

3. Regulatory Compliance Assistance:

• Monitoring Regulatory Changes: GenAI can stay updated on evolving CSRD regulations and highlight potential gaps in a company's current reporting practices, prompting adjustments for compliance.
• Identifying Reporting Requirements: GenAI can analyse a company's operations and identify the specific CSRD reporting requirements that apply, ensuring all necessary information is included.

Here's why full automation isn't currently feasible:

• Specificity of CSRD Requirements: CSRD mandates specific data points and disclosures in a structured format. AI models require extensive training on vast amounts of formatted data to achieve high accuracy, and this specific CSRD data may not be readily available yet.
• Evolving Regulatory Landscape: CSRD regulations are still under development, and the required format might change in the future. GenAI models need to be adaptable to keep pace with regulatory updates.

Overall, GenAI can be a valuable tool to improve efficiency, accuracy, and compliance in CSRD reporting. However, human oversight and expertise remain crucial for finalising reports, ensuring regulatory compliance, and crafting impactful narratives around a company's sustainability efforts.