CSRD Report

The Corporate Sustainability Reporting Directive (CSRD), published in December 2022, is a new EU regulation that requires companies to disclose their environmental, social, and governance (ESG) impacts, risks, and opportunities. Companies must follow the European Sustainability Reporting Standards (ESRS) to fulfill the requirements outlined in the directive. PayAnalytics now includes a CSRD report that supports two requirements included in the standard ESRS S1:

Requirements Overview

Requirement S1-6 - Characteristics of the Undertaking’s Employees:

• organizations must provide breakdowns of their workforce by country and contract type.

• reporting on full-time and part-time employees is voluntary.

Requirement S1-16 - Remuneration Metrics (Pay Gap and Total Remuneration):

• organizations must disclose the Male-Female pay gap and annual remuneration ratio.

• voluntary disclosures include the Male-Female pay gap by country or job category.

This is a warning message.

This summary does not constitute legal advice. For compliance-related matters, consult your legal team.

The following steps will guide your organization in leveraging PayAnalytics' CSRD report to fulfill ESRS S6 and S16 reporting requirements.

CSRD Report Details in PayAnalytics

The CSRD report in PayAnalytics is a downloadable Excel file containing several tabs. Each tab provides a breakdown or metric supporting requirements S1-6 and S1-16. The included features are:

Requirement S1-6 – Characteristics of the Undertaking’s Employees

• breakdown of the workforce by country, gender, contract type (permanent, temporary or non-guaranteed hours) and working time (when users want to disclose information related to their organization’s full-time and part-time employees).

• breakdown of employees where the undertaking has at least 50 employees representing at least 10% of its total number of employees.

• breakdown of employees by contract type, broken down by country and region (when users want to disclose information per region).

Requirement S1-16 – Remuneration Metrics

• Male-Female pay gap across the organization,

• annual remuneration ratio,

• Male-Female pay gap by country (optional),

• Male-Female pay gap by region (optional).

This is an attention message.

PayAnalytics does not currently generate pay gap metrics by job category.

Highlights and Prerequisites

• When scaling compensation for part-time employees, organization has to:

  • configure compensation settings in the employee dataset.

  • include the FTE proportion (e.g., 0.5 for part-time employees, 1 for full-time employees).

• If the dataset includes multiple currencies, organization hat to use the currency conversion tool.

Steps to Generate the CSRD Report

Prepare the Employee Dataset

The employee dataset must include the following columns (in any order):

1. Employee ID - unique identifier for each employee.

2. Country - used for generating employee breakdowns and Male-Female pay gap metrics.

3. Region (optional) - used for generating regional breakdowns.

4. Contract Type - required for categorizing employees as temporary, permanent, or non-guaranteed. Each contract type value must be unique and consistent throughout the dataset.

5. Annual Total Compensation - required for calculating the annual remuneration ratio.

6. Working Time (optional) - indicates full-time or part-time status.

7. Hourly Salary - required for calculating the Male-Female pay gap.

8. FTE Proportion (optional) - used for scaling part-time employee compensation

An exemplary table is illustrated in the following picture:

Employee dataset table

Configure the dataset

While configuring a dataset, ensure consistency in values. For example, if “Male” represents male employees, the entire dataset must use “Male” consistently (numbers or letters can be used too.)

Generate the Report

To generate a report, proceed as follows:

1. First, you must upload the dataset, navigate to the REPORT section on the left-side navigation bar and select the Reports button, as illustrated below:

Navigation bar

2. Click on Create New Report button located on the top of the page. A pop-up window appears with a list of templates, as shown on the illustration:

List of government mandated reports

3. Scroll down to the Government Mandated Reports section and choose the CSRD Report option by clicking on the Microsoft Excel icon on the right side.

4. To configure report settings, select the column that indicate country and add a regional breakdown by selecting the appropriate column (this step is optional). Map values for contract types ("Permanent",” “Temporary,” “Non-Guaranteed hours”) and choose columns for annual compensation and gross hourly earnings.

5. Click on the Generate Report button. An Excel file named "csrd_report" will be downloaded.

Review the Excel file

To review the downloaded Excel file, proceed as follows:

1. Open the downloaded file.

2. Check if each sheet is named descriptively to indicate its contents.

3. Review the title of each sheet. The title should summarize the breakdowns or metrics provided.