Electrex - Corporate Sustainability Reporting Directive (CSRD): A Game-Changer for Business and sustainability reporting in the EU

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Starting from 1st January 2025 Corporate Sustainability Reporting Directive (CSRD) significantly expands the number of companies required to report on sustainability.

More than 50,000 companies must include a sustainability report in their management reports as part of their financial statements. The directive mandates detailed disclosure of energy consumption, emissions, renewable energy use, and other environmental and social factors.

Companies may face considerable challenges in meeting these comprehensive and specific requirements.

At Electrex, we see this change as a crucial moment to support companies on their sustainability journey.

Our advanced energy monitoring and management solutions are well-positioned to help organizations meet these new demands efficiently and effectively.

What is the CSRD, and Who Will Be Impacted?

The CSRD replaces the Non-Financial Reporting Directive (NFRD) and introduces stricter reporting requirements. It applies to:

  1. Large Companies
    • Employing over 250 staff, or
    • Generating €40 million in turnover, or
    • Holding €20 million in total assets.
  2. Listed Small and Medium Enterprises (SMEs)
    While smaller private companies are exempt for now, listed SMEs will also need to comply with simplified reporting standards.
  3. Non-EU Companies with EU Activities
    Companies generating significant revenue in the EU (over €150 million annually) must report on their sustainability impact within the EU market.

The directive mandates detailed disclosure of energy consumption, emissions, renewable energy use, and other environmental and social factors, significantly broadening the scope compared to its predecessor.

CSRD: A Driver for Corporate Change

The directive isn’t just a compliance requirement—it’s a driver for change. It compels companies to adopt a data-driven approach to sustainability, ensuring their business practices align with global climate and social goals. However, gathering, analyzing, and reporting such granular data can be challenging. This is where Electrex steps in.

CSRD vs ESG

ESG reporting practices have historically varied, leading to inconsistencies.

The CSRD addresses this by requiring companies to follow European Sustainability Reporting Standards (ESRS), which provide a clear, standardized methodology for ESG disclosures.

By linking ESG data with financial reporting, the CSRD emphasizes the material impact of sustainability on business performance and long-term value creation.

CSRD can be viewed as a regulatory backbone for ESG reporting, ensuring that organizations not only disclose their sustainability efforts but also adopt a structured, transparent, and comparable approach.

Electrex: Your Partner in Sustainability Compliance

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Electrex offers a suite of solutions tailored to address the challenges posed by the CSRD. Here’s how we add value:

1. Seamless Data Collection and Monitoring

Our advanced energy analyzers and IoT-enabled devices provide real-time monitoring of:

  • Energy consumption across sites.
  • Emissions and carbon footprint metrics.
  • Environmental factors like temperature, humidity, and air quality.

With multiple communication ports and seamless integration with your PLC, SCADA and enterprise software, our devices simplify the collection of comprehensive data across diverse systems.

2. Reporting Made Easy

CSRD-compliant reporting requires precise, organized data. Electrex solutions feature:Electrex-Software-Cloud

By streamlining reporting, we reduce the administrative burden on businesses.

3. Energy Efficiency and Decarbonization

Electrex solutions go beyond compliance:

  • Optimize energy efficiency through detailed analysis and actionable insights.
  • Support the adoption of renewable energy systems like photovoltaics (PV), with specialized monitoring tools for industrial applications.

These capabilities not only fulfill CSRD requirements but also improve cost efficiency and environmental performance.

4. Industry 4.0 / 5.0 Integration

Incorporating process and environmental data into sustainability strategies is key to aligning with CSRD. Electrex devices seamlessly integrate into Industry 4.0 / 5.0 systems, enabling a smarter, connected approach to energy and resource management.

Why Act Now?

  1. Future-Proof Your Business
    Preparing for CSRD compliance now ensures a smooth transition while avoiding potential penalties and reputational risks.
  2. Gain a Competitive Edge
    Sustainability reporting is more than a regulatory hurdle—it’s a chance to showcase leadership in corporate responsibility and attract environmentally conscious stakeholders.
  3. Achieve Cost Savings
    Electrex solutions not only simplify compliance but also identify opportunities to cut energy costs and optimize operations, delivering a strong return on investment.

Contact me to schedule a call! I will be glad to answer any questions you may have.

Skender Musaj
Skender MusajExport Manager

    Energy-Related Data Requirements in CSRD

    ENERGY AUDITS & ENERGY MANAGEMENT SYSTEMS - Two complementary energy efficiency measures

    Under the CSRD, companies must disclose detailed metrics related to their energy consumption and emissions. This includes:

    1. Energy Consumption Data

    • Total energy consumption: Measured across all operations, including facilities, production processes, and transportation.
    • Breakdown by energy source: Usage of renewable energy (solar, wind, hydropower) vs. non-renewable sources (coal, natural gas, oil).
    • Energy intensity: Energy used per unit of output (e.g., kWh per product produced or revenue generated).
    • Energy efficiency improvements: Changes over time to reduce energy consumption.

    2. Greenhouse Gas (GHG) Emissions

    • Scope 1 emissions: Direct emissions from owned or controlled sources (e.g., fuel combustion in company vehicles, on-site manufacturing processes).
    • Scope 2 emissions: Indirect emissions from purchased electricity, heating, or cooling.
    • Scope 3 emissions (where relevant): Emissions from the value chain, such as supplier operations, product use, and transportation.
    • Carbon intensity: GHG emissions per unit of output or revenue.

    3. Renewable Energy Data

    • Proportion of energy derived from renewable sources.
    • Certification of renewable energy use (e.g., guarantees of origin).
    • Investments in on-site renewable energy systems (e.g., solar panels, wind turbines).

    4. Energy Transition Plans

    • Targets for energy consumption reduction.
    • Plans to switch to renewable energy.
    • Investments in energy-efficient technologies or systems.

    5. Climate Risk Assessment

    • Impact of energy use on climate risks.
    • Energy-related strategies to mitigate climate risks (e.g., reducing dependency on fossil fuels).

    How Energy Data is Used in CSRD Reports

    1. Environmental Impact Disclosure
      • Energy data highlights a company’s contribution to climate change through its energy consumption and emissions.
      • It provides transparency on how sustainable the company’s operations are.
    2. Performance Tracking and Benchmarking
      • Companies use energy data to compare their performance against industry benchmarks and regulatory standards.
      • Progress toward emissions reduction targets (e.g., net-zero goals) is assessed using historical energy and emissions data.
    3. Compliance with Climate Goals
      • CSRD reporting ensures alignment with EU climate goals, such as the Fit for 55 package and the European Green Deal.
      • Data on renewable energy use demonstrates a company’s contribution to decarbonization.
    4. Stakeholder Communication
      • Energy data is used to inform investors, customers, and other stakeholders about the company’s environmental responsibility.
      • Accurate reporting builds trust and demonstrates accountability.
    5. Cost and Efficiency Analysis
      • Energy data helps identify inefficiencies, leading to operational improvements and cost savings.
      • It supports decision-making for investments in energy-efficient technologies and renewable energy systems.

    How Electrex Can Help Companies Meet These RequirementsElectrex: Unlocking Energy Efficiency with MQTT and WEB APIs

    Electrex offers solutions to collect, monitor, and analyze energy and emissions data for seamless integration into CSRD reports:

    1. Real-Time Energy Monitoring
      • Track total and segmented energy consumption (by source, location, or process).
    2. Emissions Calculations
      • Automate Scope 1, 2, and 3 emissions tracking based on energy data.
    3. Renewable Energy Management
      • Monitor on-site renewable energy systems and track their contribution to overall energy use.
    4. Customizable Dashboards and Reports
      • Generate CSRD-aligned energy and emissions reports with clear, actionable insights.
    5. Integration with ESG Frameworks
      • Align energy data collection and reporting with GRI, TCFD, and other ESG standards.

    In summary, energy and emissions data are foundational for CSRD compliance. Companies must disclose detailed metrics that illustrate their energy use and environmental impact, and tools like Electrex’s solutions make this process efficient, reliable, and insightful.

    SMEs are Indirectly Impacted by CSRD

    Small and Medium-sized Enterprises (SMEs) will be impacted by the Corporate Sustainability Reporting Directive (CSRD).

    The CSRD specifically requires listed SMEs (those with shares traded on EU-regulated markets) to comply with sustainability reporting requirements, albeit with simplified standards.

    Even unlisted SMEs and those outside the CSRD’s direct scope will feel the ripple effects due to their role in supply chains and relationships with larger companies.

    Key Impacts on Unlisted SMEs:

    • Supply Chain Pressure
      • Large companies subject to the CSRD must disclose Scope 3 emissions, which include emissions from their suppliers.
      • SMEs in these supply chains may be required to provide detailed energy and emissions data to their larger partners.
    • Increased Expectations from Stakeholders
      • Banks, investors, and other stakeholders are increasingly demanding sustainability data, even from smaller companies, as part of ESG assessments.
    • Competitive Advantage
      • SMEs with robust sustainability practices and the ability to provide relevant data may gain a competitive edge in securing contracts with larger, CSRD-compliant companies.

    Opportunities and Challenges for SMEs

    Challenges:

    • Resource Constraints
      • Many SMEs lack the financial, technical, and human resources to invest in sustainability reporting systems.
      • Navigating reporting standards and implementing energy monitoring or emissions tracking may require significant initial investments.
    • Knowledge Gap
      • SMEs may need external expertise or training to understand sustainability reporting requirements.

    Opportunities:

    • Access to New Markets and Funding
      • Adopting sustainability practices can open up opportunities for partnerships, contracts, and access to ESG-focused investors or green financing.
    • Cost Efficiency through Energy Management
      • Tracking energy consumption and emissions can identify inefficiencies, leading to cost savings and improved operational performance.
    • Enhanced Reputation
      • Sustainability efforts can improve brand image, attracting environmentally conscious customers and partners.

    How Electrex Can Support SMEs with CSRD

    Electrex offers tailored solutions to help SMEs address CSRD-related challenges efficiently:

    1. Affordable Energy Monitoring Solutions
      • Real-time monitoring of energy use, emissions, and renewable energy integration designed for smaller-scale operations.
    2. Simplified Data Reporting
      • Tools to automate data collection, reduce administrative workload, and create reports aligned with simplified ESRS.
    3. Scalable Solutions
      • Systems that can grow with the SME’s needs, providing a cost-effective entry point into sustainability management.
    4. Training and Support
      • Guidance on sustainability practices, compliance, and using Electrex tools to achieve reporting goals.

    Conclusion

    The CSRD represents a monumental shift in corporate accountability and sustainability. For businesses, it’s both a challenge and an opportunity to align with global climate goals while enhancing operational efficiency.

    At Electrex, we are committed to empowering companies to navigate this transition. Our comprehensive energy monitoring and management solutions are designed to simplify compliance, drive efficiency, and create long-term value.

    Get in touch with us today

    to learn how Electrex can help your business turn CSRD compliance into a strategic advantage!

    About us

    Since 1993 Electrex designs, develops, manufactures and markets, Made in Italy, instruments and software for energy  management and control.

    The Electrex solutions are used in the Energy Efficiency and Energy Automation applications, for the industrial, commercial, public, civil, and renewable energy sectors allowing a rapid return on investment.

    The solutions provided up to now allow the management of over 505,000 measuring points and more than 910,000 points are controlled via Energy Automation applications.

    Electrex, one of the first companies to operate in these sectors, has acquired over the years a considerable experience and competence that few other companies can claim to have. With over 40% of the staff dedicated to R & D, we demonstrate our strong commitment to innovation and continuous improvement in order to anticipate the needs of our customers.