Context and background
Two years ago, the EU introduced the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS), which are a tremendous step forward in the standardization of non-financial reporting. The new standard is very comprehensive but also presents an important risk for companies, especially the middle-sized ones, since important resources will be needed to produce these reports, of which a significant part will go into consulting, report creation and auditing. These resources are therefore potentially diverted from actual sustainability projects — initiatives that aim to genuinely mitigate environmental and social impact or create positive value. In response, we are developing solutions to reduce the efforts and the cost of reporting. Our main target group is a broad range of SMEs from 10 to 3000 employees, as larger companies will have different needs. We have already developed the software in CSRD ESRS Set 1 and VSME format, as well as a software to help companies with their Double Materiality Assessment (DMA). Nevertheless, we know that we need to go beyond the core functionalities that we currently have to streamline the process. That’s where you would come into play.
Project description
We propose rethinking the sustainability reporting process by using the current technological tools. While advanced solutions involving data analytics will undoubtedly play an important role, we believe that simplifying the overall process is equally critical. Alternative approaches, such as streamlining the way the reporting is done and improving information accessibility, can be just as effective in helping businesses meet the growing demand for reporting. This Transformative Project invites you to explore how to best achieve this. While the key ingredients are known, the way you combine and enrich them is up to you. Potential avenues include the use of advanced data analytics (AI, machine learning), data collection systems, template toolkits, user guides, or short videos to guide the SMEs (or video scripts). Whereas large consulting firms often produce lengthy, complex manuals to guide companies on how to produce CSRD reports — making their business out of complexity — our ambition is the opposite: to cut through the reporting jungle and create a process that is as clear, simple, and as actionable as possible. Making our business out of simplicity! The main research question therefore is: How to reduce the needed efforts to report under CSRD for (swiss) SMEs?
This project is part of the Transformative Projects: teams of 3-4 SMT students from different disciplines work together over three months on a topic developed by a company with the objective to propose new perspectives and solutions that can have the potential to transform industry or societal practices.