The Corporate Sustainability Reporting Directive (CSRD), implemented by the European Union in line with Green Deal objectives, represents a revolution in the world of non-financial reporting. Sustainability is no longer an optional annex to a company's annual report; it has become a mandatory requirement that must be presented with the same level of auditability, transparency, and seriousness as financial data. For exporting companies in Turkey and supply chain partners of multinational corporations, CSRD is not just a matter of compliance, but also a strategy to maintain competitiveness in the global market. In this guide, we will examine the scope of CSRD, the ESRS standards, and the concrete steps to be taken during the first year of preparation through the perspective of WorkyBe’s energy management solution, etta.

What is CSRD and Who Does It Cover?

CSRD (Corporate Sustainability Reporting Directive) is a regulation that directly affects approximately 50,000 companies and significantly expands the scope of reporting compared to the previous NFRD. Its primary goal is to ensure that investors and stakeholders can evaluate a company's sustainability performance through comparable data.

Companies Within the Scope

  • Large-Scale Companies: Companies listed on EU stock exchanges with more than 500 employees (reporting in 2025 based on 2024 data).
  • Other Large Companies: All companies exceeding 250 employees, with a turnover of more than 50 million Euros or a balance sheet total exceeding 25 million Euros.
  • SMEs: Listed SMEs (subject to simplified standards).
  • Non-EU Companies: Turkish firms that exceed a certain turnover threshold (150 million Euros) within the EU and have a branch/subsidiary in the EU may also fall under this scope.

ESRS Standards: The Backbone of Reporting

CSRD compliance is carried out through the European Sustainability Reporting Standards (ESRS). These standards consist of 12 main modules under the headings of Environmental (E), Social (S), and Governance (G).

Environmental Standards and Energy Data

The sections most relevant to energy managers, ESRS E1 (Climate Change) and ESRS E2 (Pollution) standards, require direct data on energy consumption, emissions, and resource efficiency. In particular, reporting Scope 1, 2, and the most challenging, Scope 3 emissions, is nearly impossible without a digital infrastructure.

First Year Roadmap: Step-by-Step Preparation

The CSRD compliance process is a marathon. To ensure a successful first year, the following four-stage strategy should be followed:

1. Double Materiality Analysis

Your company must report not only its impact on the environment but also the effects of climate change on its own financial performance. For example, physical risks that extreme weather events may pose to your production facility and the impact of carbon taxes like CBAM (Carbon Border Adjustment Mechanism) on your costs must be included in this analysis.

2. Data Inventory and Gap Analysis

How much of your current data is ESRS compliant? Is your meter data instantaneous or invoice-based? AI-powered platforms like etta analyze your historical data at this stage to identify missing points and create regulation-compliant data sets.

3. Identification of Scope 3 Emissions

Measuring emissions coming from the supply chain is the most critical item of the CSRD. You need to standardize the energy data received from your suppliers.

Case Study: An Energy-Intensive Production Facility

Scenario: A textile factory consuming 100 GWh of electricity annually must report its Scope 2 emissions under CSRD.

  • Case A (Manual): The factory manager enters monthly invoices into Excel. They get emission factors from outdated sources. The margin of error is 15%. The auditor marks this data as "high risk."
  • Case B (Digital with etta): etta pulls data instantaneously from main meters and sub-meters. It automatically calculates the carbon footprint using up-to-date national emission factors obtained from the EPİAŞ (Energy Exchange Istanbul) Transparency Platform. The auditor accesses verifiable, transparent data within seconds.

The Role of Digital Transformation: Why is etta Critical?

CSRD expects data to move from a "limited assurance" level to a "reasonable assurance" level. This requires the source of the data to be provable. etta turns energy management into a compliance center rather than just a savings tool:

  • Automated Reporting: Creates energy and carbon reports compliant with ESRS E1 standards with a single click.
  • Forecasting: Simulates your future energy costs and potential carbon taxes like ETS (Emissions Trading System) or CBAM with artificial intelligence.
  • Real-Time Monitoring: Minimizes compliance risks by providing instant notifications of deviations from targets.

Frequently Asked Questions (FAQ)

Is CSRD reporting mandatory for companies in Turkey?

Turkish firms that do business directly in the EU market or are suppliers to EU-based companies fall into this scope either indirectly or directly due to turnover thresholds. Additionally, the TSRS (Turkish Sustainability Reporting Standards) regulations published by the KGK (Public Oversight, Accounting and Auditing Standards Authority) are largely aligned with CSRD/ESRS.

Can we track our data via Excel?

Technically yes, but manual errors pose a serious risk during the assurance process. For CSRD compliance, it is recommended to keep data in a digital system that is traceable, transparent, and retroactively queryable.

What is the penalty for not reporting?

While legal sanctions vary from country to country, the biggest penalty is being excluded from financial markets and eliminated from supply chain tenders. Investors classify companies that do not submit a CSRD report as "high risk."

Can the etta system work integrated with our existing ERP system?

Yes, thanks to API support, etta can communicate with your existing ERP and SCADA (Supervisory Control and Data Acquisition) systems to transform energy data into sustainability performance indicators.