The Corporate Sustainability Reporting Directive (CSRD) brings new challenges and opportunities for HR departments across Europe. We sat down with Toni Turunen, Head of Partnerships at Sympa, to discuss how HR professionals can prepare for these requirements and how the right tools can make the transition smoother. Remember to also read our side of the story from Sympa's blog.
Understanding CSRD
The Corporate Sustainability Reporting Directive represents a significant shift in how companies report their environmental, social, and governance (ESG) impacts. This EU directive expands the scope and depth of sustainability reporting requirements, affecting thousands of companies across Europe. While CSRD covers various aspects of corporate sustainability, it places particular emphasis on social factors, including workforce-related metrics and practices.
The HR Challenge
According to Turunen, HR departments are facing increasing pressure to maintain accurate and comprehensive data. "HR professionals must now take on an active role in sustainability reporting. With data readily available and needing to be up-to-date, this certainly puts some pressure on HR decision-makers," he explains.
One of the key challenges is the breadth of data required. "It's not just about direct employees anymore," Turunen points out. "We need to consider all stakeholders, including temporary workers and subcontractors."
Beyond Numbers: The Qualitative Aspect
The CSRD requirements go beyond simple quantitative data. As Turunen notes, "There are many aspects that need to be reported but aren't found in HR systems. These include qualitative practices and policies that aren't tied to individual employees - things like employee satisfaction measures and company-wide policies, and how these are communicated to staff."
The Role of Technology
The integration of HR systems with dedicated ESG reporting tools can significantly streamline the reporting process. "When using Sympa for daily HR work, a lot of employment-related data accumulates naturally through employee lifecycle management, which can be utilised in CSRD reporting," Turunen explains.
He emphasizes that this continuous data accumulation is a key advantage: "Since data is collected and updated throughout the entire employee lifecycle, HR departments don't need to scramble to gather information right before reporting deadlines. This proactive approach ensures that when CSRD reporting is due, most of the required data is already available and up-to-date."
Turunen also highlights the importance of distributing responsibilities: "Since Sympa is a tool for the entire staff, not just HR, HR professionals can reduce their workload by delegating some of this documentation to supervisors."
The Sympa-Falcony Integration
A more in-depth integration between Sympa and Falcony is currently in development, with resources allocated for the integration during the March-May 2025 development cycle. Once completed, this integration is expected to offer several key benefits:
- Automated data transfer without manual Excel exports
- Enhanced data enrichment capabilities
- Broader organisational involvement in the reporting process
"The integration will allow quantitative data from Sympa to automatically transfer to Falcony without any manual Excel transfers. Additionally, qualitative data not found in Sympa can be enriched with quantitative data from the system," Turunen explains.
Preparing for the Future
For HR departments looking to prepare for CSRD requirements, Turunen offers practical advice: "Now is an excellent opportunity to implement self-service features that allow HR personnel to delegate work to supervisors. It's also crucial to ensure that your company's HR practices truly align with CSRD requirements - not just focus on reporting."
He adds, "From an audit perspective, having all CSRD data in one place (Falcony) allows HR professionals to approach audits with peace of mind, knowing that everything is in the correct format and easily verifiable."
Looking Ahead
The implementation of CSRD presents an opportunity for HR departments to take a more strategic role in their organisations. As Turunen notes, "HR professionals must now be able to explain why HR-related CSRD metrics have changed over the years. This emphasises HR's role and enables different strategic dialogues with management."
By embracing the right tools and approaches, HR departments can turn these new reporting requirements into an opportunity for improving their practices and contributing to their organisation's sustainability goals.
Watch the Webinar Recording
Did you miss our webinar with Sympa on navigating CSRD requirements in HR? Do not worry! The recording is now available for you to watch at your convenience. Learn about practical strategies for HR professionals facing CSRD requirements, discover the benefits of integrated HR and ESG reporting solutions, and get answers to common questions about this topic. Access the recording now to ensure your HR department is ready for the CSRD journey ahead:
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