CSRD Reporting Starting in 2027: Is Your JD Edwards Environment Ready?

The rules governing sustainability reporting are changing once again. As a result of the European Omnibus Directive, the group of companies subject to the Corporate Sustainability Reporting Directive (CSRD) has shrunk. However, for organizations that are required to report, complying with the requirements remains just as important.

In fact, reliable ESG data is becoming an essential part of business operations.
What we’re seeing is that many organizations still approach sustainability reporting as a standalone compliance project. That’s precisely where the biggest challenge often lies: without a reliable data foundation, reporting quickly becomes a manual process involving spreadsheets, checks, and a lot of extra work.

It is precisely in this area that ERP plays a much greater role than many organizations realize.

In this article, you’ll learn what changes are coming in 2027, which organizations will be affected, and how the JD Edwards Sustainability Framework helps make sustainability reporting part of day-to-day operations.

Following the implementation of the Omnibus Directive, CSRD requirements will apply exclusively to the largest companies starting with the 2027 fiscal year. Organizations with more than 1,000 employees and net revenue exceeding €450 million must report in accordance with the European Sustainability Reporting Standards (ESRS) starting at that time.

Although the target audience has shrunk, the content of the reports remains comprehensive. Among other things, organizations must provide insight into their impact on people and the environment, the financial consequences of sustainability risks, and sustainability performance throughout the supply chain. In addition, external assurance remains part of the reporting process.

The new regulations are not limited to European companies.

International organizations, including U.S. companies with a substantial presence in Europe, may also fall under the CSRD if they meet the established revenue and establishment criteria.

But perhaps even more importantly, even companies that are not required to report are increasingly receiving inquiries from customers and supply chain partners.

In our practice, we’ve noticed that these requests for information are increasingly becoming part of tenders, supplier evaluations, and contract negotiations. The question, therefore, is not just whether you need to report, but more importantly, whether you have the right data available when customers ask for it.

More and more large organizations are asking suppliers for information on, among other things:

• CO₂e emissions
• energy consumption
• waste streams
• sustainable procurement
• social performance within the supply chain

In other words: even without a legal reporting requirement, the need for reliable sustainability data is growing.

Many organizations do not realize that JD Edwards EnterpriseOne already offers functionality for this.

With the JD Edwards Sustainability Framework, you can capture sustainability data directly within your existing ERP processes. Instead of collecting data after the fact, you create a single, central source where operational processes and ESG data converge: the Sustainability Ledger.

With this, you can, among other things:

• Centrally manage sustainability data within JD Edwards;
• gain real-time insight into CO₂e emissions, energy consumption, and other ESG indicators;
• integrating sustainability into processes such as procurement, manufacturing, and logistics;
• prepare reports in accordance with international standards such as ESRS, CSRD, and GRI;
• Create transparent audit trails for accountants and auditors.

The result is not only better compliance, but also greater insight into where sustainability efforts actually make a difference.

Sustainability reporting has long since ceased to be merely a mandatory requirement for the finance department. Organizations that invest in reliable ESG data now will soon have much more than just a report for regulators.

They gain insight into energy consumption, emissions, waste streams, and operational performance, making sustainability an integral part of daily decision-making.

In our experience, most of the value comes not from the report itself, but from the insights organizations gain along the way. Once energy consumption, emissions, and operational data are brought together, it becomes clear which sustainability initiatives are most effective and where further optimization is possible.

This makes sustainability not only a compliance issue, but also an opportunity to further optimize processes.