CSRD Reporting for CFOs: Financial Metrics and Integration

Introduction

The Corporate Sustainability Reporting Directive (CSRD) is transforming how European companies manage and disclose non-financial information — and Chief Financial Officers (CFOs) are at the centre of that change.

Sustainability reporting is no longer just an environmental or communications issue. It’s an integrated financial process that connects ESG data, accounting controls, and risk management.

This guide explains what CFOs need to know to align financial and sustainability data, what metrics fall under CSRD, and how to build governance structures that support credible, audit-ready reporting.

1. Why CSRD Matters for CFOs

The CSRD expands sustainability disclosure requirements to over 50,000 EU companies and their value chains. It requires data that’s:

• Comparable with financial reporting,
• Auditable under assurance standards, and
• Linked to strategic and financial outcomes.

For CFOs, this means sustainability reporting now shares the same expectations as financial statements: reliability, traceability, and internal control.

Key CFO responsibilities under CSRD

• Ensure governance and internal control for sustainability data.
• Integrate ESG disclosures into annual financial reporting cycles.
• Oversee data accuracy and assurance readiness.
• Align sustainability metrics with financial KPIs such as cost, investment, and risk exposure.

2. Financial Metrics Now Tied to CSRD

Several financially material metrics must now be disclosed under ESRS (European Sustainability Reporting Standards), linking ESG to core accounting figures.

The CFO’s finance function plays a key role in verifying these metrics and ensuring they reconcile with audited financial data.

3. Integrating Financial and ESG Data Systems

CFOs should aim to merge financial systems (ERP, accounting) with non-financial data sources (energy meters, HR systems, supplier databases).

Integration Steps:

1. Map financial and ESG data flows — identify overlaps (e.g. energy bills, travel costs).
2. Standardise units and timeframes — align sustainability data with financial periods.
3. Use shared data governance tools — apply the same validation and approval steps.
4. Automate data collection where possible through ERP or sustainability software.
5. Reconcile sustainability KPIs with financial statements before disclosure.

This integrated approach supports audit readiness and makes assurance smoother for both sustainability and financial auditors.

For help setting up efficient systems, see How to Integrate CSRD Data Collection into Existing Workflows.

4. Linking Sustainability to Financial Planning and Risk

Under CSRD, CFOs must ensure that sustainability risks and opportunities are reflected in financial planning, capital allocation, and forecasts.

Examples:

• Climate risks (e.g. energy price volatility) linked to cost projections.
• ESG CapEx and OpEx included in budgets and management reports.
• Carbon pricing or emissions costs integrated into investment decisions.
• Sustainability KPIs tied to executive remuneration.

These linkages demonstrate that sustainability is financially material — a key focus area for auditors and investors.

5. Governance and Internal Controls for ESG Data

Just like financial reporting, sustainability data needs:

• Defined ownership (who reports what),
• Internal validation (review and approval), and
• Documentation of sources and calculations.

Recommended governance practices:

• Assign ESG data owners within finance, HR, and operations.
• Include CSRD reporting in the Audit Committee’s annual agenda.
• Create a Sustainability Reporting Policy aligned with IFRS and ESRS principles.
• Use version-controlled templates for data collection.

Strong governance not only improves accuracy but also demonstrates accountability — a core requirement under ESRS G1 (Governance and Conduct).

6. Preparing for Assurance and Verification

From FY2025 onward, all CSRD reports will require limited assurance, transitioning later to reasonable assurance. CFOs will oversee both the internal preparation and the external review process.

Key preparation steps:

• Maintain evidence trails for all sustainability metrics.
• Ensure alignment between ESG and financial disclosures.
• Involve auditors early to test your data control systems.

For a deeper overview, see Who Can Verify My CSRD Report? and Does CSRD Reporting Need to Be Audited for SMEs?.

7. CFO Checklist for CSRD Integration

Frequently Asked Questions

Do CFOs need to sign off on CSRD reports?

Yes. Under CSRD, the management board collectively approves the report, meaning CFOs share accountability for sustainability data accuracy.

How are CSRD metrics linked to financial statements?

ESRS requires disclosures on the financial impacts of sustainability issues — including how risks and opportunities affect cash flow, valuation, and profitability.

Can finance teams use existing accounting software for CSRD?

Yes. Most systems can be adapted by adding ESG data fields, categories, or API connections to sustainability data sources.

What if the ESG data is estimated?

Estimates are acceptable under CSRD if the methodology is transparent and consistent. Document all assumptions for assurance purposes.

Key Terms

• CSRD – Corporate Sustainability Reporting Directive, EU regulation linking ESG and financial reporting.
• ESRS – European Sustainability Reporting Standards defining disclosure requirements.
• Materiality – The significance of an ESG issue to financial or stakeholder impact.
• Limited assurance – Moderate verification level required for sustainability data.
• ESG governance – Systems and controls ensuring responsible sustainability reporting.

Conclusion

For CFOs, CSRD is an opportunity to strengthen the bridge between financial and sustainability data — transforming ESG reporting from a compliance exercise into a value management tool.

By integrating systems, aligning financial metrics, and implementing strong internal controls, finance teams can lead the organisation toward credible, audit-ready sustainability reporting.

To plan your finance and sustainability reporting cycle, consult the Annual CSRD Reporting Calendar.

To understand which sustainability topics are most relevant to your financial reporting, use our industry topic selector:

This tool will help you determine which ESRS topics are most material to your business, making it easier to prioritize financial and sustainability metric integration.