Why Excel is not sufficient for CSRD reporting
Many companies use Excel as their first tool for approaching CSRD reporting. Spreadsheets are familiar, flexible, and quick to use. This can be useful for getting an initial overview.
However, practical implementation shows that the requirements of the CSRD go far beyond what Excel can deliver in the long term.
This article provides guidance on when Excel can be used effectively and when more structured solutions are necessary for businesses.
Excel vs. Software: Which solution is right for CSRD?
With the CSRD, sustainability reporting will become:
- more comprehensive
- more data-intensive
- relevant for examination
- annually recurring
Under the CSRD, companies must not only report results, but also transparently explain how they were achieved. This includes clearly defined processes, comprehensible evaluation logic, and documented decisions over time.
Especially at the beginning, it can be useful to work with Excel, for example to structure initial topics, collect data, or develop a basic understanding of the requirements. However, as the CSRD requirements become more detailed and complex, it quickly becomes apparent that Excel has its limitations.
As soon as multiple departments are involved, data needs to be updated regularly, or auditable documentation is required, table-based approaches reach their limits. CSRD is thus evolving from a one-time task to a continuous management process that requires long-term structured processes and suitable systems, not just individual Excel files.
Limitations of Excel in CSRD implementation
1. Limited transparency with growing amounts of data
With an increasing number of:
- Topics
- key figures
- departments involved
This quickly results in multiple tables and versions. This makes it difficult for companies to maintain a consistent overview and reliably track changes.
2. Traceability and audit requirements
CSRD reports are subject to external review. Reviewers expect:
- a clear derivation of the results
- documented evaluation criteria
- traceable changes over time
Excel offers only limited options for this. In particular, a continuous audit trail can only be mapped with a great deal of manual effort.
3. High coordination effort
CSRD affects numerous specialist areas. In Excel, data must:
- manually merged
- coordinated
- be checked
This increases the coordination effort and ties up internal resources, especially when processes are repeated annually.
4. Structured illustration of double materiality
Double materiality requires a clear separation of impact and financial perspectives, defined criteria, and transparent assessment decisions.
This is fundamentally possible in Excel, but often:
- difficult to understand
- not very standardized
- difficult to reproduce
This can be a challenge, especially during later audits or internal inquiries.
5. Scalability across multiple reporting years
CSRD is a long-term undertaking. Data, assessments, and processes must:
- updated annually
- comparable
- be further developed
Excel is only suitable for this to a limited extent, as historical data, changes, and responsibilities can only be managed in a structured manner to a limited extent.
When Software CSRD becomes useful
Many companies reach a point in their CSRD preparations where the effort involved increases significantly. The amount of relevant data grows, requirements become more complex, and the issue of verifiability increasingly comes into focus. At this point, at the latest, it becomes clear that manual, spreadsheet-based approaches can only be managed with a great deal of effort.
Software becomes virtually indispensable Software this point Software , especially for companies subject to CSRD. The directive requires not only complete content, but also traceable documentation of processes, assessments, and decisions across multiple reporting years. Specialized software solutions provide support here by centrally bundling data, standardizing processes, and clearly mapping responsibilities. Changes to content or assessments are automatically documented, which makes subsequent auditing much easier.
However, the use of Software can also be Software for companies that are not directly subject to CSRD requirements. Many of these companies are indirectly affected—for example, by customers, investors, or banks that are increasingly requesting structured sustainability information. Those who adopt a systematic approach at an early stage create transparency, reduce future conversion costs, and are better prepared for upcoming regulatory requirements.
Another advantage lies in cross-departmental collaboration. CSRD-relevant data is not generated in one place, but in different areas such as purchasing, HR, finance, or sustainability. Software collaboration by defining clear roles, simplifying coordination, and making information available in one central location.
Overall, the use of Software helps Software transform CSRD from a complex mandatory task into a manageable, repeatable process. This not only makes sustainability reporting manageable, but also ensures that it is efficient and future-proof in the long term.
Implement CSRD in a structured manner with cubemos
cubemos helps companies systematically map CSRD requirements—from double materiality to documenting results.
With cubemos, companies can:
- Structured recording of sustainability issues
- Assess impact and financial materiality transparently
- Document evaluation logic in a comprehensible manner
- Involve different departments
- Prepare for exams
This creates a clear, repeatable process that goes beyond individual Excel files.
Conclusion: Excel as a starting point – Software a long-term solution
Excel can be a useful starting point.
However, spreadsheets quickly reach their limits when it comes to implementing CSRD in a sustainable, auditable, and scalable manner.
Companies that view CSRD as an ongoing process benefit from investing in structured systems and suitable Software at an early stage.
