Implementing the CSRD in practice : a multiple-case study on challenges and learning

Abstract

This thesis examines how Finnish firms implemented the EU’s Corporate Sustainability Reporting Directive (CSRD) in its first cycle. Building on the Non-Financial Reporting Directive (NFRD), the CSRD adds mandatory double materiality assessments and ESRS requirements. A qualitative multiple-case study of four Nasdaq Helsinki–listed early adopters (energy, forestry and paper, consumer goods, and heavy equipment) was conducted through semi-structured interviews with senior sustainability leads and one manager. Three key themes emerged: (i) governance restructuring—firms created or upgraded sustainability governance bodies and cross-functional CSRD teams to support “finance-grade” ESG data and ESRS compliance; (ii) technical and practical challenges—standardizing data architectures, operationalizing double materiality, and institutionalizing upstream stakeholder engagement amid evolving assurance expectations; (iii) lessons learned—developing flexible ESRS processes, embedding sustainability in risk management, transitioning from one-off compliance to lasting practices, and enhancing upstream collaboration. Using Institutional and Stakeholder theories, the study explains the adoption of CSRD. It offers a playbook, including early cross-functional governance, IT–finance data alignment, formal stakeholder processes, and stronger board expertise. It recommends clearer EU guidance on double materiality and phased assurance. Limitations are single informants and a first-cycle focus; future research should track long-term outcomes.