A CSR report is a cornerstone of transparent communication and a genuine credibility builder with stakeholders, alongside a broader CSR strategy across the company. For some organizations, producing a report on their CSR strategy and its results is a legal requirement.

How is CSR defined?

CSR definition

CSR stands for corporate social responsibility, sometimes also called corporate sustainability responsibility. The European Commission defines CSR as the voluntary integration, by companies, of environmental and social concerns into their business activities and stakeholder relationships. In short, CSR can be summarized as a company's contribution to sustainable development.

The 3 pillars of CSR

The scope of CSR is defined by the international standard ISO 26000, which covers 7 core subjects grouped under the three pillars of sustainable development: environmental, social and economic. In a CSR strategy, these are the three angles through which a company's overall performance should be assessed.

  • Environmental responsibility involves concrete action to reduce the carbon footprint of operations, use resources more efficiently, cut waste volumes and raise employee awareness of environmental issues.
  • Social responsibility covers a company's equal opportunity policy, respect for employee rights, working conditions and ethical relationships with suppliers worldwide.
  • Economic responsibility is measured by the quality of a company's services, its support for the local economy, the transparency it demonstrates, and good practices such as payment terms toward suppliers and other partners (subcontractors, etc.).

    • What is a CSR report?

    A CSR report is a periodic document, usually published annually, that presents a company's actions and performance regarding social and environmental responsibility. It describes the company's commitments and results in areas such as sustainable development, respect for human rights, anti-corruption measures, environmental management and stakeholder relations.

    The report is published either voluntarily or under a regulatory requirement, and aims to inform the company's stakeholders, shareholders, employees, customers, suppliers, local communities, about its sustainability performance. It can be drafted using different frameworks such as GRI or ISO 26000, and typically includes key indicators to measure results achieved and outlook.

    Why produce a CSR report?

    The value of a CSR report

    A CSR report improves transparency around the societal and environmental impact of a company's activities. It also helps companies better assess the consequences of their operations on society, the local economic ecosystem and the environment, and to take stock of their carbon footprint.

    Because a CSR report highlights the steps a company has taken to embed its activities within a sustainable development approach, it is also valuable to stakeholders already engaged with the company or considering working with it: employees, investors, suppliers, subcontractors and NGOs.

    The CSR reporting requirement

    The legal framework around CSR has tightened over time, making the production of a CSR report mandatory for certain companies. For a long time limited to financial matters, corporate reporting obligations have extended to non-financial disclosure. Today this covers a company's environmental, social and governance policy.

    The non-financial performance statement was introduced to present the environmental and societal risks tied to a company's activities, along with how those risks are managed, meaning identified, prevented and mitigated.

    Which companies must produce a CSR report?

    In France, the Grenelle II law established the principle that companies must take environmental and social issues linked to their activities into account. Since 2017, it has required certain companies to report on these issues.

    This French non-financial reporting requirement, also referred to as the non-financial performance statement, historically applied to:

  • publicly listed companies
  • SA, SAS and SE companies with annual revenue above a set threshold
  • companies with more than 500 employees and revenue above a set threshold
  • unlisted companies with more than 500 employees and revenue above a set threshold

    • This French regime is being progressively replaced by the EU's Corporate Sustainability Reporting Directive (CSRD). Following the EU Omnibus simplification package, the scope and thresholds that will determine which companies fall under the CSRD are currently under revision at EU level. Companies should check the applicable thresholds directly with EFRAG or their national regulator rather than rely on a fixed figure, since the criteria are still being finalized.

    Although smaller companies, including SMEs, are not legally required to produce a CSR report, they still have much to gain from communicating on their CSR commitments. A CSR report is a valuable document that any company can choose to produce voluntarily.

    How to build a CSR report

    A CSR report should be built with its various readers in mind: shareholders, employees, customers, suppliers, and more broadly citizens and public authorities. Its purpose is to inform them about the company's CSR strategy and the environmental impact of its products and services.

    Certain information is essential in a CSR report, in particular the carbon footprint, specifically in the form of a GHG emissions inventory. Only emissions directly caused by the company's own activities must be reported, not those originating from subcontractors or suppliers.

    A CSR report should account for the company's responsibility and commitments across the three dimensions of sustainable development. Information can therefore be structured into three sections:

    The social section

  • Workforce and employee breakdown, compensation, hiring and layoffs
  • Organization of social dialogue within the company
  • Health and safety conditions
  • Employee training initiatives
  • Diversity, inclusion and professional equality
  • Anti-corruption and human rights actions

    • The environmental section

  • How the company factors environmental issues into its decisions
  • Waste management and pollution control
  • Responsible use of water and raw materials
  • Measures to reduce greenhouse gas emissions from operations (for example, an employee mobility plan)
  • Biodiversity protection measures

    • The societal section

  • The company's local economic impact
  • Philanthropic actions and social partnerships
  • Consumer protection practices
  • Anti-corruption measures

    • DPEF or CSR report?

    DPEF stands for "Déclaration de Performance Extra-Financière," the non-financial performance statement. It is a French reporting mechanism that replaces the voluntary CSR report for companies subject to the French reporting obligation. It must be integrated into the annual management report.

    The DPEF is a French-specific regulatory instrument, not an international standard. It is more demanding than a standard CSR report: it covers the same type of content, social, societal and environmental information, but must also be reviewed by an independent third party, whose opinion is shared with shareholders.

    In short, companies subject to the French non-financial reporting obligation must produce a DPEF, while companies not subject to that legal obligation can produce a voluntary CSR report, the earlier version of the DPEF. The DPEF framework is itself being phased out and replaced by the CSRD, which requires reporting against the ESRS standards and, for many companies, a double materiality assessment.

    The content and structure of the DPEF are also defined by regulation: information must be organized under the plan: policy, action plan, results, key performance indicators.

    In conclusion

    Creating a CSR charter allows companies to communicate on their environmental and ethical commitments. Sharing it with employees, partners, investors and the general public is a key lever to build loyalty, provide reassurance and demonstrate the transparency now expected by both consumers and employees.

    Whether it takes the form of a mandatory DPEF or a voluntary CSR report, several distribution channels are worth considering. A dedicated website, video content, infographics: think about the most effective communication levers available today.

    To go further on the frameworks referenced in this article, see our guides on the GHG Protocol and on ISO 26000.

    Ready to structure your carbon and CSR data collection ahead of your next report? Get in touch with our team.