Preparing your organisation for CSRD through strategic scenario planning

Organisations across Europe are navigating a pivotal moment. The accelerating pace of change, driven by political shifts, economic uncertainty, social transformation, rapid technological advances, and intensifying environmental pressures (PESTLE), is demanding bold and resilient leadership. The EU’s Corporate Sustainability Reporting Directive (CSRD),¹ alongside sister directives such as the EU’s Pay Transparency Directive² and the Corporate Sustainability Due Diligence Directive (CSDDD),³ adds to this urgency by setting new benchmarks for how companies account for their social and environmental impacts.

The CSRD calls for greater transparency around how businesses are measuring and addressing material sustainability risks and impacts, including those related to diversity, equity, inclusion (DEI), and human rights across the value chain. Complying with CSRD requires more than meeting reporting obligations; it demands a deeper understanding of how sustainability and inclusion intersect with business performance and long-term risk.⁴ But many organisations struggle to build this understanding and embed CSRD’s principles into strategies and practices.

At the same time, European organisations are keeping a close eye on developments across the Atlantic, where evolving regulatory frameworks — whether directly applicable or indirectly influential — are creating ripple effects that further complicate the compliance landscape. For global organisations, this transatlantic dynamic adds another layer of complexity, reinforcing the need for strategic clarity and adaptive leadership.

If you are a leader responsible for CSRD, this tool provides a structured way for you to bring together key stakeholders — across HR, DEI, legal, finance, and sustainability — to align priorities and co-develop strategic responses. It supports organisational efforts to address compliance requirements and go further, enabling scenario-based planning that is inclusive, forward-looking, and grounded in cross-functional collaboration.

This tool will enable you to:

• Navigate the “S” in ESG through structured scenario planning that aligns with CSRD requirements.
• Identify and prioritise material social risks and opportunities across the value chain.
• Stress-test organisational readiness through three future-facing scenarios:
  • Mandatory CSRD disclosures expose existing diversity, equity, and inclusion gaps.
  • AI bias in ESG tools skews CSRD disclosures.
  • Divergence in regulations and budgetary commitment to inclusion across markets complicates CSRD compliance.

How to cite: Smith, E. & Penda, V. (2025). Preparing your organisation for CSRD through strategic scenario planning. Catalyst.