Sustainability is no longer just a strategic pillar, but an indispensable element to ensure competitiveness in the European Union. The Corporate Sustainability Reporting Directive (CSRD) seeks to embed this perspective in the business fabric, while the new Draghi Report proposes a transformative vision for Europe’s sustainable competitiveness. Both frameworks stress the importance of aligning economic, social and environmental interests, underlining that sustainability is not a burden, but a competitive advantage.

This article shows how the recommendations of the recent Draghi Report contribute to strengthening the implementation of the CSRD, offering European companies a path towards a more competitive, ethical model aligned with sustainable development goals.

The vision of the new Draghi Report

Regulatory simplification to boost sustainability

The report highlights the need to simplify current regulations, a task that translates into a concrete proposal: the creation of a Vice-Presidency for Simplification in the European Commission. This measure aims to reduce administrative barriers to compliance, particularly for small and medium-sized enterprises (SMEs). In the context of the CSRD, this recommendation is crucial, as it helps companies to adopt sustainable practices without affecting their competitive capacity.

Technological innovation as a driver of change

Technology is an indispensable ally on the road to sustainability. According to the Draghi Report, artificial intelligence and other digital tools should be integrated into business management to optimise the collection, analysis and presentation of ESG (environmental, social and governance) data. This strategy not only reduces costs, but also allows companies to leverage data to improve their sustainability performance, aligning with the requirements of the CSRD.

Multi-sectoral partnerships for collective impact

The report emphasises the importance of collaborating with governments, NGOs and other private actors to establish coherent and effective regulations. These partnerships are key to implementing the CSRD, as they ensure a collective approach that accelerates the transition to a sustainable economic model.

The CSRD: a policy framework for corporate sustainability

The CSRD obliges European companies to report their sustainability performance with greater transparency and rigour. With specific requirements for reporting on environmental impact, labour practices and governance structure, the CSRD not only encourages accountability, but also incentivises the adoption of sustainable strategies; an essential aspect is the external auditing of these reports, which ensures the credibility of the data and prevents greenwashing practices. By adopting these measures, companies can enhance their reputation, attract responsible investment and strengthen their market position.

1. Objectives and scope of the CSRD

The CSRD aims to broaden the number of companies subject to sustainability regulations, covering not only large listed companies, but also small and medium-sized enterprises (SMEs) that meet certain criteria. Unlike its predecessor, the Non-Financial Reporting Directive (NFRD), which only applied to large companies, the CSRD broadens the requirements to include a wider range of organisations. This approach aims to get more companies to adopt responsible practices.

Unlike its predecessor, the Non-Financial Reporting Directive (NFRD), which only applied to large companies, the CSRD broadens the requirements to include a wider range of organisations. This approach responds to the need for structural change in the European economy, in line with the recommendations of the Draghi Report on sustainable competitiveness.

2. Reporting requirements

The CSRD introduces more stringent requirements on how companies should report their sustainability performance, ensuring that information is clear, comparable and detailed. Reporting must cover three main areas:

• Environmental aspects: Impact of the company’s operations on the environment, natural resource management, and strategies to mitigate climate change.
• Social aspects: Labour practices, human rights, and how the company interacts with the communities in which it operates.
• Governance aspects: Corporate structure, management practices and regulatory compliance.

These requirements reflect an ambitious standard that places sustainability as a strategic focus within organisations, aligning with the Draghi Report’s vision of innovation and efficient management.

3. Importance of external audit

A key element of the CSRD is the need for sustainability reports to be verified by external auditors. This ensures the quality and accuracy of the data, strengthening the credibility of companies in the eyes of their stakeholders. Furthermore, this measure is crucial to combat greenwashing, preventing companies from making misleading claims about their commitment to sustainability.

External audits are not only a regulatory requirement, but also a strategic tool that can position companies as leaders in accountability and transparency. As highlighted by the Draghi Report, adopting advanced technologies in ESG data management facilitates both regulatory compliance and continuous improvement of business performance.

4. Implications for business

Implementing CSRD requires companies to adapt their internal processes and reporting systems, which represents a significant change. However, it also creates opportunities to strengthen reputation, improve stakeholder relations and strategically position themselves in an increasingly sustainability-oriented market.

For example, a company that optimises its sustainability practices and integrates advanced technological tools, such as artificial intelligence-driven software, will not only comply with the CSRD, but will also be able to differentiate itself as a leader in its sector. This proactive approach, aligned with the Draghi Report’s recommendations, can reduce administrative costs, improve ESG performance and attract responsible investment.

In the end, CSRD compliance should not only be seen as a regulatory obligation, but as a platform to innovate, collaborate and generate sustainable value in a global marketplace.

Synergies between the Draghi Report and the CSRD

The recent Draghi Report and the CSRD share a common vision: integrating sustainability as a core element of business competitiveness. While the report proposes to reduce barriers and foster innovation, the CSRD provides the regulatory framework needed to consolidate this transformation. Together, they chart a path towards a future in which European companies not only comply with regulations, but also lead in social, environmental and economic responsibility. With the combination of simplification, technology and strategic alliances, companies are called to see sustainability not just as a duty, but as an opportunity to create value and make a difference in a global marketplace.

The path set out by the new Draghi Report and the CSRD reinforces a key trend: sustainability as a driver of business competitiveness in Europe. In this context, meeting sustainability criteria is no longer just a matter of regulatory compliance, but a strategic opportunity to enhance reputation, attract responsible investment and strengthen global market position.

With an advanced platform for managing and integrating ESG criteria, companies have the ideal tool to adapt to these requirements, ensure compliance and take advantage of the opportunities that sustainability offers. We are Maska, shall we talk?