CSRD Business Case Study: Idiro Analytics

Many businesses are struggling to understand the requirements of legislation such as the Corporate Sustainability Reporting Directive (CSRD). The challenge can be particularly daunting if your business is not directly within scope of the legislation. You may be wondering how it affects your business? If you are a supplier to a large organisation, you may be requested to submit sustainability data as part of the supply chain of an organisation that does have to comply. To find out who has to comply with the Corporate Sustainability Reporting Directive read our previous article Decluttering ESG.

Idiro Analytics, a data analytics consultancy business, is an SME and a supplier to large organisations that have to comply with CSRD. They are not in scope of CSRD but like many Small and Medium Enterprises (SMEs) are in the supply chain of companies that are obligated to submit an annual sustainability report under CSRD. Idiro Analytics have shared their experience in this case study to highlight some of the challenges currently faced by SMEs, particularly those of an office based business who may not have ready access to some of the data and metrics requested.

The Idiro Analytics experience

In June 2023, as part of our commitment to a client, a large financial institution, we undertook a carbon audit to support their CSRD reporting obligations. The process, carried out using the not-for-profit CDP’s (Carbon Disclosure Project) tool, proved to be a challenging task, replete with complexities and technical jargon that were unfamiliar to us as an SME.

The audit required us to engage with new concepts and metrics that were outside our usual scope of expertise. This included calculating the carbon footprint of various aspects of our operations, such as our electricity consumption and the carbon cost of our cloud compute usage – neither of which were readily at hand for us to access. We had our client’s understanding with this, a new process for all stakeholders.

For example, the challenge in calculating our electricity consumption arose from the fact that we operate in a serviced office where electricity is included in the overall fee. Our landlord could not provide a breakdown of our specific electricity usage because the building has multiple tenants but only one electricity meter. This lack of detailed data made it difficult to accurately assess our electricity-related emissions, adding a layer of ambiguity to the audit. To meet this challenge, we ascertained typical average electricity consumption levels from sources including ICT equipment guides.

Other challenges included understanding the specific metrics required for reporting and the methods for accurately calculating emissions from various sources. For instance, determining the carbon footprint of employee commutes involved collecting detailed data and applying calculation methods that were not straightforward.

Overall, the process was time-consuming and stretched over six weeks. Much of this time was spent seeking information and guidance online, often hitting roadblocks that required additional research to overcome. Available support and information from some online resources included limitations in terms of our specific needs, further compounding the difficulty of the task.

While we support government and EU initiatives to move towards net zero, our experience highlighted several areas for improvement in the carbon auditing process for SMEs. Firstly, more comprehensive support and clearer guidance would significantly ease the burden on small businesses.

Additionally, a simplified reporting framework and more accessible information could help SMEs better manage their environmental reporting obligations.

Aidan Connolly

CEO

Idiro Analytics

Resources to assist you

Ibec Toolkit on CSRD

Unpacking CSRD: A Guide for business [2024]

Ibec partnered with Davy Horizons to create this toolkit for business. The toolkit serves as a comprehensive resource for understanding and implementing the Corporate Sustainability Reporting Directive requirements. It offers valuable insights and guidance for both the organisation ‘in scope’ looking to refine their reporting practices, as well as the small enterprise beginning their sustainability journey who may not be ‘in scope’ directly but is in the supply chain of an organisation that is.

Ibec Webinar

CSRD: From Strategy to Implementation

Overview of Ibec’s CSRD toolkit to help businesses integrate sustainability, enhance compliance, drive innovation, and engage stakeholders including latest updates on proposed changes as a result of EU omnibus. 

View the recording here

Ibec Training: upcoming Ibec Academy courses

The following courses will be very beneficial for anyone who wishes to become more knowledgeable on what sustainability means for their business and how corporate sustainability/ESG (environmental social and governance) will impact and benefit their business and future operations.

1 day course: Foundations in Sustainability and ESG for business

• Wednesday 11 June 2025 (full day, online)
• More information and how to book can be found here.

1 day course: CSRD Readiness

• Wednesday 30 April 2025 (full day, online)
• More information and how to book can be found here

4 day course: CPD Certificate in Corporate Sustainability ESG

• Tuesday 6 May 2025 (4 day, blended)
• More information and how to book can be found here