For years, the social-impact section of a company's reporting was a narrative. A few warm paragraphs and a photo.
CSRD changed that. Suddenly the figures behind those paragraphs need an audit-grade source, structured against the European Sustainability Reporting Standards.
The knock-on effect lands squarely on the grants team. The sustainability colleague who used to leave them alone now arrives asking for structured social data: beneficiaries reached, communities supported, types of intervention. Mapped to ESRS S3 on affected communities, and sometimes S1 where employees are involved.
The trouble is that most grant setups were never designed to produce data in that shape. Impact came back from grantees as free-text PDFs, each describing outcomes in its own way. Impossible to aggregate, and impossible to trace to a verifiable source.
We see teams scramble to retrofit this at reporting time. That is both painful and risky, because assurance means the numbers have to hold up under scrutiny.
The teams that handle CSRD calmly do one thing differently. They capture outcome data at the grantee level, in a structured and comparable form, throughout the year. So when the sustainability team asks, the report draws from program data directly, instead of being reconstructed under deadline pressure.