The Corporate Sustainability Reporting Directive (CSRD) requires companies to disclose detailed sustainability and ESG (Environmental, Social, and Governance) data. Suppliers are the heart of this process, as their contributions directly impact the quality and accuracy of your data and thereby sustainability reporting.
We have outlined eight steps for how to prepare your suppliers for the CSRD data collection.
Step 1: Educate suppliers about CSRD
Start by ensuring your suppliers understand what CSRD is and why their role is critical. Tailor the message to their perspective:
- What is CSRD? A regulation requiring detailed sustainability reporting that involves supply chains.
- Why does it matter to suppliers? Compliance ensures ongoing business relationships, avoids risks, and enhances their market competitiveness. And if they cannot share the data that you need to report, you might have to find another partner.
- How does it impact suppliers? Suppliers must provide accurate data on metrics like emissions, energy usage, and labor practices.
Tip: Create supplier-friendly guides, short videos, or FAQs to explain CSRD and their role in clear and simple terms.
Step 2: Identify and prioritize key suppliers
Identify which suppliers are most relevant to your CSRD reporting by:
- High-impactsSuppliers: Target suppliers where you know most of your business is placed or where there is a higher risk of issues or large emissions.
- Critical smaller suppliers: Include smaller partners whose data might disproportionately affect your reporting.
Tip: Share a prioritized roadmap with suppliers, showing where they fit in and how they can contribute effectively.
Step 3: Set clear and specific expectations
Define what you need from suppliers in practical terms:
- Data categories: Specify the exact data required, such as CO2 emissions, energy use, waste output, workforce distribution or audit and SAQ results.
- Frequency: Outline how often data should be reported and when the final deadline is.
- Format: Provide standardized templates to ensure consistency.
Tip: Offer suppliers a checklist that clearly outlines their data submission responsibilities.
Step 4: Equip suppliers with tools and training
Help suppliers succeed by providing the right tools and support:
- Workshops and webinars: Host sessions tailored to suppliers’ specific challenges and industries. If you don’t have the resources to do that yourself, find high quality online resources to share.
- Step-by-step templates: Simplify reporting by giving them pre-formatted templates with examples.
- Digital tools: Introduce platforms that automate data entry and flag errors in real time.
Tip: Create an online package where suppliers can access training materials, submit data, and track their progress.
Step 5: Simplify data submission processes
Remove barriers that might discourage suppliers from participating:
- User-friendlyiInterfaces: Use tools that make data input intuitive and quick. Consider using platforms and tools they already knowand are familiar with.
- Automated reminders: Set up notifications to prompt timely submissions.
Tip: Pilot your data submission process with a small group of suppliers and incorporate their feedback before scaling up.
Step 6: Validate supplier data
Work with suppliers to ensure the data submitted is accurate and reliable:
- Spot audits: Select random submissions for detailed verification.
- Collaborative reviews: Offer suppliers a chance to clarify or correct data if discrepancies are found.
- Feedback reports: Share insights with suppliers about their performance and suggest improvements.
- Visual proof: Collect real-time images and videos along data points where visual proof is needed.
Step 7: Recognize and reward supplier efforts
Motivate suppliers by acknowledging their contributions:
- Incentives: Offer incentives for accurate and timely reporting.
- Public recognition: Highlight top-performing suppliers in sustainability reports or at industry events.
- Collaborative projects: Partner with proactive suppliers on joint sustainability initiatives.
Step 8: Maintain ongoing communication
Keep suppliers engaged and informed about changes to CSRD or your processes:
- Regular updates: Send newsletters or host calls to share updates.
- Feedback loops: Encourage suppliers to share their challenges and insights.
- Iterative improvements: Work collaboratively to refine data collection processes over time.
Empower your suppliers
Suppliers are pivotal in colleting the data needed for CSRD compliance. By focusing on education, clear communication, and continuous improvement, you can empower your suppliers to provide the high-quality data needed for successful sustainability reporting.
How can Qarma support you?
Using Qarma Supplier Compliance and Audits tool, multiple steps becomes easier. We supply a platform for easy submission of data, easy planning of Self-assessments, immediate feedback and of course – validation of input with visual proof and GPS coordinates.
If you’d like to know more about how you can get started with our Audits & Supplier Compliance tool for this process, book a demo right here.
