HR Under CSRD: What HR Leaders Must Know About New Reporting Requirements?

• Social dialogue practices, such as collective bargaining coverage and employee engagement structures.
• Training and development efforts aligned with the sustainability transition.

These requirements underscore that HR data is no longer peripheral but central to how companies demonstrate their social responsibility.

Importantly, CSRD also pushes HR to address stakeholders beyond direct employees. Contractors, gig workers, and agency staff must be considered part of the workforce picture. This broad lens means HR must redesign its data collection and reporting systems to capture the full spectrum of labor relationships within the enterprise.

These requirements underscore that HR data is no longer peripheral but central to how companies demonstrate their social responsibility. Importantly, CSRD also pushes HR to address stakeholders beyond direct employees. Contractors, gig workers, and agency staff must be considered part of the workforce picture. This broad lens means HR must redesign its data collection and reporting systems to capture the full spectrum of labor relationships within the enterprise.

The HR Challenge: Data Breadth and Qualitative Insights

The biggest hurdle for HR professionals under CSRD is not only the breadth of data but also the nature of the information required. Quantitative metrics such as headcount and wage distribution can be extracted from HR systems with relative ease. However, CSRD also demands qualitative disclosures: policies on diversity, communication practices, grievance mechanisms, and cultural alignment. These elements are not always structured within HR databases, making them harder to document and standardize.

For example, an organization may have robust policies on parental leave or anti-discrimination, but unless these are codified, consistently applied, and measurable, they cannot withstand audit scrutiny. Similarly, employee satisfaction surveys generate valuable qualitative insights but often remain isolated projects instead of being integrated into systematic reporting.

Another complexity arises from the inclusion of subcontractors and temporary workers. Many HR systems are designed to manage permanent employees but offer limited visibility into extended workforce arrangements. This creates blind spots that can undermine the completeness of CSRD disclosures. Bridging this gap requires HR departments to collaborate with procurement, legal, and compliance teams to ensure subcontracted labor is included in the reporting universe.

Ultimately, HR’s challenge is to move from reactive data gathering toward a proactive system of continuous data collection and qualitative policy evaluation. This transition requires not only technology but also a shift in mindset. HR leaders must view their departments as data owners and strategic custodians of workforce sustainability, not simply administrators of payroll and benefits.

The Role of Technology: From Fragmented Records to Integrated Reporting

Technology is emerging as the critical enabler for HR departments preparing for CSRD. Manual collection of workforce data across multiple systems, spreadsheets, and business units is neither efficient nor auditable. Integrated HR and ESG platforms provide the infrastructure to capture, manage, and report data seamlessly.

Modern HR systems can automatically track employee lifecycle data: contracts, onboarding, training, career progression, and exits. This provides a live repository of quantitative data that is continuously updated rather than retroactively collected at reporting deadlines. When integrated with ESG reporting platforms, this data can flow directly into CSRD-compliant disclosures, minimizing errors and audit risks.

Equally important is the ability to enrich HR data with qualitative insights. For example, survey tools integrated into HR systems can capture employee perceptions of workplace culture, diversity, and engagement. These qualitative inputs, when combined with hard metrics, create a holistic picture of workforce sustainability.

Delegation of responsibilities also becomes possible with the right systems. Instead of HR bearing the entire reporting burden, supervisors and managers can be enabled to document policies, incidents, and initiatives directly into the system. This distributes accountability across the organization, reduces bottlenecks, and ensures more accurate reporting.

Emerging integrations, such as linking HR platforms with risk management or compliance tools, are further enhancing the ability of HR teams to manage CSRD obligations. Automated data transfer eliminates reliance on manual exports, while dashboards provide real-time visibility into reporting readiness. For HR leaders, technology adoption is the only practical way to meet CSRD expectations without overwhelming the function.

Preparing for the Future: Practical Steps for HR Leaders

The transition to CSRD reporting is not a distant consideration; it is a current and urgent requirement. HR leaders should begin with three immediate priorities:

1. Evaluate data readiness: Conduct a gap analysis of existing HR systems against CSRD requirements. Identify missing data categories, particularly around contractors, qualitative policies, and workforce engagement.
2. Invest in integrated platforms: Adopt HR technology that enables continuous data collection, integrates with ESG reporting tools, and supports delegated documentation across departments.
3. Align policies with reporting: Ensure HR practices and policies are not only documented but also aligned with CSRD’s focus on workforce well-being, diversity, and social impact. Policies must be auditable and consistently applied.

In addition, HR teams should establish cross-functional governance structures to manage sustainability reporting. This means aligning HR, finance, legal, procurement, and sustainability departments under a unified CSRD reporting strategy. Training programs for HR staff and supervisors can further enhance awareness and improve data quality.

Finally, HR leaders must prepare for a new form of accountability. Regulators and auditors will expect HR to explain not only current metrics but also year-on-year changes. This requires narrative-building, contextual analysis, and the ability to link workforce trends to business performance. By adopting this forward-looking perspective, HR can elevate its role to that of a strategic partner guiding the company’s sustainability journey.

Conclusion: IFRSLAB as Your Partner for CSRD-Ready HR Transformation

The Corporate Sustainability Reporting Directive places HR departments at the center of corporate sustainability disclosures. The shift from basic workforce metrics to comprehensive, audited reporting on employee well-being, diversity, and labor practices is a profound change that requires both cultural adaptation and technological investment.

At IFRSLAB, we help organizations prepare their HR functions for this new landscape. Our services span ESG reporting alignment, HR data readiness assessments, system integration strategies, and workforce sustainability audits. We work with HR leaders to design reporting processes that are accurate, auditable, and strategically valuable.

The CSRD is an opportunity for HR to shape the social dimension of ESG and demonstrate its strategic contribution to the business. With IFRSLAB as your partner, your HR department can turn reporting requirements into a competitive advantage, strength.