CSRD Reporting in 2025: What Ireland’s Construction Sector Needs to Know

The Corporate Sustainability Reporting Directive (CSRD) is set to transform sustainability reporting across Europe, and Ireland’s construction sector is no exception. With mandatory reporting beginning in 2025 for qualifying companies, it’s time for construction businesses to prepare for what’s coming.

Here’s everything you need to know about who needs to report and how to get ready.

Who in the Construction Sector Needs to Comply?

The CSRD applies to large companies, including those in construction, that meet at least two of the following criteria:

1. More than 250 employees.

2. Annual turnover exceeding €50 million.

3. Total assets over €25 million.

This scope includes many of Ireland’s top construction firms, as well as others that meet the thresholds. Companies already subject to the Non-Financial Reporting Directive (NFRD) must also transition to CSRD standards.

What Does CSRD Reporting Require for Construction Companies?

Under the CSRD, construction companies must report on their environmental, social, and governance (ESG) impacts, risks, and performance. Key areas of focus include:

1. Environmental Reporting:

• Scope 1, 2, and 3 Emissions:

• Scope 1: Direct emissions from your operations (e.g., fuel usage).

• Scope 2: Indirect emissions from purchased energy.

• Scope 3: Indirect emissions from supply chains, transport, and materials.

• Circular Economy and Resource Use:

• Track material flows such as muckaway, aggregates, and demolition waste.

• Demonstrate efforts to reduce, reuse, and recycle materials to align with EU circular economy goals.

2. Social Reporting:

• Workforce Well-Being:

• Include metrics on worker health, safety, and well-being on-site.

• Supply Chain Transparency:

• Collaborate with suppliers to gather and verify sustainability data.

3. Governance Reporting:

• Risk Management:

• Disclose how environmental and social risks are managed across projects.

• Compliance:

• Provide proof of adherence to EU sustainability laws and demonstrate accountability for ESG performance.

What Construction Companies Need to Do for 2025

Step 1: Assess Your Current Position

• Identify Reporting Gaps:
  Review your current data collection and reporting systems to identify areas that need improvement.

• Understand Materiality:
  Conduct a double materiality assessment to determine your company’s ESG impacts and risks.

Step 2: Start Collecting Data Early

• Scope 3 Emissions:
  Work closely with suppliers and subcontractors to collect data on materials, transport, and logistics.

• Circular Economy Metrics:
  Monitor materials used, reused, and recycled to meet EU circular economy goals.

Step 3: Invest in Technology

• Digital Solutions:
  Implement systems that automate data collection and reporting, ensuring compliance with CSRD requirements.

• Centralised Dashboards:
  Use tools that provide real-time insights into emissions, materials, and project impacts.

Step 4: Build a Cross-Functional Team

• Form a team with representatives from sustainability, operations, finance, and supply chain departments to coordinate reporting efforts.

Step 5: Prepare for Third-Party Audits

• Ensure your data is verifiable and audit-ready. The CSRD requires sustainability reporting to meet the same rigor as financial disclosures.

Why Construction Companies Need to Act Now

1. Avoid Non-Compliance Penalties

Failing to meet CSRD requirements could result in financial penalties and reputational damage.

2. Unlock Green Funding Opportunities

Demonstrating sustainable practices can open doors to green financing and public contracts tied to ESG performance.

3. Enhance Competitive Advantage

Early adopters will position themselves as industry leaders, winning trust from clients, investors, and stakeholders.

How Hub360 Can Support Ireland’s Construction Sector

Hub360 is tailored to meet the unique challenges of the construction industry under the CSRD:

• Real-Time Emissions Tracking:
  Simplify Scope 3 data collection for materials, transport, and subcontractor activities.

• Material Flow Monitoring:
  Track waste and resources to ensure compliance with circular economy goals.

• Audit-Ready Reports:
  Generate reports aligned with the European Sustainability Reporting Standards (ESRS).

• Supply Chain Collaboration:
  Engage suppliers to ensure accurate sustainability data across your value chain.

The Countdown to 2025 is On

The CSRD is fast approaching, and construction companies in Ireland must start preparing now. By acting early, you can ensure compliance, secure funding opportunities, and strengthen your reputation as a sustainability leader.

Contact Hub360 today to learn how we can help your company prepare for CSRD reporting in 2025.