ALAN DEANE, Head of Quality, BC(A)R & Sustainability, Vision Contracting Limited, writes that the CSRD isn’t just a regulatory hurdle—it’s a strategic opportunity for early adopter contractors to gain a competitive edge, secure key projects, and futureproof their businesses in an increasingly ESG-focused market.
The Corporate Sustainability Reporting Directive (CSRD) is a European Union (EU) legislative framework that mandates certain companies to report on their environmental, social, and governance (ESG) impacts and risks. It is a key part of the EU’s “Green Deal” and aims to standardise and improve the quality, transparency, and comparability of sustainability information.
It replaces the previous Non-Financial Reporting Directive (NFRD) and significantly expands the number of companies required to report, as well as the scope and detail of the information they must disclose.
Double Materiality
A core concept of the CSRD is “double materiality,” which requires companies to report on both how sustainability issues affect their business (financial materiality) and how their business activities affect people and the environment (impact materiality).
The European Sustainability Reporting Standards (ESRS) are the detailed, technical standards that companies must use to fulfil their reporting obligations under the CSRD. Developed by the European Financial Reporting Advisory Group (EFRAG), the ESRS provide a comprehensive framework for disclosing specific information on a wide range of sustainability topics, including climate change, pollution, biodiversity, labour rights and business conduct.
In essence, the CSRD is the legal directive that sets the reporting requirements. The ESRS provide the specific “how-to” guide, ensuring that companies report consistently and comparably across the EU.
CSRD Compliance
The timeline for CSRD compliance has been subject to proposed amendments and “stop the clock” directives. It’s important to note that the timetable has been in flux. The current understanding is that companies that are not currently subject to the NFRD but are classified as “large undertakings” will likely be required to begin reporting on their sustainability data for the financial year starting on or after 01 January 2026. This means they will be publishing their first CSRD-compliant reports in 2027.
Large undertakings are generally defined as companies that meet at least two of the following three criteria:
– More than 250 employees
– A net turnover exceeding €50m
– A balance sheet total exceeding €25m
However, there have been recent proposals and amendments to simplify and postpone some of the reporting requirements. The stop-the-clock directive effectively delays the reporting deadlines for the second and third waves of companies. While the initial schedule would have had listed SMEs reporting in 2027, this has been pushed back. Therefore, the group primarily affected by the 2027 reporting deadline are the large companies (not previously under the NFRD) that will be reporting on their 2026 financial year.
CSRD Requirements
The CSRD requires main contractors such as Vision Contracting Ltd (Vision Contracting) to be more transparent and report publicly on how their business and industry impact people and the environment. It also highlights how current and future sustainability issues, such as climate change, human rights and governance, will impact their businesses. This is where the ‘double materiality assessments’ come into play. As already stated, a double materiality assessment is a process companies use to identify and evaluate the significance of both the impact of sustainability issues on the company’s financial performance and the company’s impact on the environment and society. It’s a dual-lens approach required by the CSRD for comprehensive sustainability reporting.
Understanding the Context
The CSRD requires large companies to report on ESG impacts in a consistent and transparent way. For Vision Contracting, this means enhancing our ability to track emissions, resource use, social practices, and governance systems across diverse project sites. Even if we’re not the reporting entity, our data will likely feed into a client’s disclosures.
Client-driven reporting requirements
The CSRD is transforming the construction industry as a whole, as well as the mindset of companies that fall under its scope or not.
Large clients, such as life sciences, pharma and public works frameworks, which form a substantial proportion of Vision Contracting’s customer base, must now report their ESG data and comply with the CSRD. This requires us to supply accurate data as part of the value chain, which we now provide, giving transparency and proof of sustainability performance to our clients.
Standardised ESG expectations
As explained at the beginning of this piece, the CSRD is formed by the ESRS, which facilitates the construction industry in having consistent tracking of carbon emissions, waste, labour practices, and governance — areas where construction has historically been fragmented.
Greater pressure on environmental and social performance
Qualifying companies must demonstrate their roadmaps, targets and KPIs to reduce the carbon footprint of their business operations, minimise waste and improve the welfare of employees and their supply chains.
Impact on tendering
In tendering processes, particularly public frameworks, potential clients are now looking to see how contractors manage their ESG metrics and green procurement within their supply chain. Failure to show this clearly could result in contractors losing out on bids or frameworks because they lack strong sustainability credentials.
Need for better systems and training
The CSRD and ESRS have placed greater demands on contractors to engage with digital platforms or consultants to implement systems that enhance their sustainability reporting processes. This has also brought an additional requirement for training or educating employees.
Opportunity for competitive advantage
Contractors who are early adopters of the CSRD have a clear opportunity to gain a competitive edge in a rapidly evolving market. By proactively aligning their operations with CSRD principles, contractors can build greater transparency, win the trust of environmentally conscious clients, and position themselves as leaders in sustainable construction.
Clients are increasingly prioritising sustainable design and aiming to achieve third-party green certifications such as BREEAM and LEED. These frameworks assess not only environmental impact but also health, wellbeing, energy efficiency, and materials usage across a building’s lifecycle. Achieving such certifications typically requires engaging a qualified BREEAM/LEED consultant to manage the process from early design through to postconstruction performance validation.
To meet these expectations, contractors like Vision Contracting must work collaboratively with clients, design teams, and consultants from the earliest project stages. These collaborations include working together to select low-embodied carbon materials, incorporate passive and energy-efficient design strategies, minimise waste, and embed responsible (Green) procurement practices across the whole project supply chain.
Furthermore, demonstrating a robust understanding of sustainability metrics – such as lifecycle carbon, water use, and circularity – can differentiate contractors during tendering. Early CSRD adoption not only ensures compliance with future regulatory requirements but also enables contractors to integrate sustainability into their core value proposition, making them more attractive partners for forward-thinking developers and public sector clients alike.
Carbon tracking for specific projects
For Irish construction contractors navigating diverse client requirements for carbon tracking, early engagement is paramount. By initiating discussions with clients at the project’s inception, contractors can align on specific carbon accounting methodologies, data collection protocols, and reporting formats. This proactive approach enables the integration of established frameworks, such as BREEAM or LEED, or the development of a bespoke system that meets both the client’s sustainability goals and the contractor’s operational capabilities. Crucially, this early dialogue should extend to the entire supply chain, including key suppliers and subcontractors, to ensure they understand their role in providing data and adhering to carbon reduction targets. Internal training programmes are essential to equip project teams with the knowledge and tools required for effective carbon data capture and management throughout the project lifecycle.
Implementing a robust carbon tracking framework also necessitates a strategic approach to value engineering, identifying opportunities to reduce embodied and operational carbon without compromising project quality or cost. This involves setting clear, measurable carbon reduction targets for each project, which should be regularly monitored and reported against. Furthermore, contractors should integrate carbon tracking into their overarching ESG policy and procedures, ensuring it’s not an isolated task but a fundamental aspect of their business operations. This holistic integration fosters a culture of sustainability, enabling contractors to demonstrate tangible progress in carbon reduction, meet regulatory obligations, and enhance their reputation as environmentally responsible partners in the Irish construction sector
Internal readiness and strategy
Vision Contracting has proactively initiated internal preparations to ensure we are well-positioned ahead of the regulatory deadlines. Our current programme will see us produce our first CSRD Report in 2026.
Recognising the strategic importance of sustainability, we are laying the groundwork for robust internal reporting systems and recently completed a detailed engagement with both internal and external stakeholders to arrive at a double materiality assessment—an essential step in aligning with CSRD requirements.
Our roadmap and strategy development are already underway, focusing on building the necessary capabilities and systems to collect reliable, project-level sustainability data. This includes improving site-level data capture related to waste generation, fuel consumption, and materials usage – critical metrics for both compliance and performance improvement.
ESG systems and processes
At present. Vision Contracting prepares a monthly carbon report using Excel. At the same time, we are exploring the available platforms and their services to determine which ones are financially beneficial for the business and facilitate ease of data processing.
Vision Contracting also currently gathers data monthly from our vendors and suppliers for the key criteria that fall under Scope 1, 2, and 3 emissions.
We utilise Bamboo HR for any social data requirements and Hammertech for Safety Performance and KPI’s
Collaboration and supply chain management
Collaboration with subcontractors and suppliers is key to achieving CSRD compliance.
Our subcontractors and suppliers must provide accurate data to enable Vision Contracting to produce accurate ESG reporting.
Vision Contracting is ISO 14001:2015 certified, and we implement this standard on all of our projects, where our subcontractors must also comply with the standards. We engage suppliers and vendors that can provide the necessary level of certification and data reports to enable us to comply with the CSRD.
Vision Contracting’s site teams engage subcontractors through Toolbox Talks and project kick-offs to reinforce expectations on waste segregation, responsible sourcing and emissions tracking.
We are also developing a new ESG questionnaire for our clients, suppliers, and subcontractors. This questionnaire is part of our strategy to assess double materiality continuously. The questionnaire will focus on key areas such as the use of materials (like plastics) and transportation to help us better understand our environmental and social impact
Supplier data consistency and accuracy
Early engagement with suppliers at the procurement stage of a project enables us to apply our green procurement policy, ensuring that data is readily available for the selected materials and capturing the embodied carbon content within materials such as steel or concrete. This helps ensure alignment with client and regulatory expectations.
Practical implementation of CSRD
Depending on the type of project and site location, to encourage sustainable practices and circular economy, the following examples can and have been implemented by Vision Contracting.
– Focus on reuse: Excavated material on site should be reused or transported to a facility that can process it for reuse.
– Focus on recycling: On-site waste segregation is essential to enable waste vendors to process it effectively. This allows for maximum recycling and reduces the volume of waste sent to landfill, with the aim of achieving zero waste to landfill.
– Renewable energy: At present, our offices in Cork and Dublin are using 38% renewable energy through Bord Gáis, and our Kerry and Limerick offices are using 58% renewable energy through Electric Ireland.
– Focus on carbon footprint: Looking at the overall carbon footprint of site operations, efforts are being made to reduce reliance on diesel generators by connecting to the local electricity grid or using hybrid generators. We are also looking at moving to HVO fuel where practical. – Solar welfare units are also an option being investigated, along with solar lighting towers. – It is possible to use sustainably-charged small electrical plant as long as an appropriate charging station system is implemented on-site. We are currently exploring options for this, as well as adding electric vehicles (EVs) to our fleet.
– Source materials from local suppliers helps minimise transport distances, and if they have EV transport, then we should request this as part of carbon reduction plans.
Embedding sustainability into project delivery
Since beginning our CSRD compliance journey, Vision Contracting has started mapping out a carbon reduction plan and setting KPIs and targets to hit over the coming years. These sustainability objectives are being integrated into our prestart meetings, design coordination, and weekly reviews.
Key performance indicators (KPIs), such as fuel usage, waste diversion rates, and environmental incidents, are now tracked as part of our carbon footprint reporting and Quality, Environmental, Health & Safety (QEHS) audits.
Opportunities for value creation
Aligning with CSRD gives Vision Contracting a distinct competitive edge when tendering for work with multinational clients and public frameworks that require reporting on our supply chain’s ESG impacts. It also supports stronger relationships with suppliers and opens doors to innovation grants or sustainable construction pilot programmes.
Clients are increasingly shortlisting contractors with strong ESG credentials. Vision Contracting can now clearly demonstrate our ability to deliver green procurement and carbon footprint tracking.
Next steps
At Vision Contracting, we no longer just focus on delivering high-quality, innovative, and cost-effective construction solutions. We now provide data, transparency, and proof of sustainability performance. This has required a cultural shift internally and closer collaboration externally.
Vision Contracting is investing in sustainability training, digital tools and supply chain partnerships to futureproof our operations. The ultimate goal is to integrate sustainability into every level of operations – from bid stage to site handover.
Beyond CSRD
Vision Contracting recognises that navigating CSRD challenges is both a compliance necessity and a strategic opportunity. As client expectations rise, we aim to lead with transparency, collaboration and take a practical approach to sustainability in construction.
The CSRD and ESRS are transforming the construction industry. Contractors like Vision Contracting will need to fully integrate ESG practices into their daily operations in offices and on sites to remain competitive and compliant in a client-led, sustainability-focused market.
Non-compliance risks contractors being left off client-approved supplier lists, as well as the loss of opportunities to futureproof against tightening regulations and investor expectations.
A growing number of ESG platforms are now available for contractors. These can help businesses accurately track and report their carbon emissions and overall sustainability efforts. By using these platforms, contractors can more effectively work towards becoming net-zero companies.
Beyond simply aligning with the CSRD, many Irish building contractors are embracing a new wave of technological innovation to meet evolving sustainability demands. The integration of AI in carbon modelling and lifecycle assessments (LCA) will enable more accurate and efficient measurement of projects’ environmental impacts from inception to completion.
Furthermore, these advanced tools will be crucial for the effective implementation of circular economy practices, allowing companies to optimise resource use, reduce waste, and identify new opportunities for material reuse and recycling.
In conclusion
While the CSRD presents a clear regulatory challenge for the Irish construction sector, it also serves as a powerful catalyst for positive change. Companies like Vision Contracting are demonstrating that a proactive approach to compliance is not merely about ticking boxes, but about creating a more resilient, efficient, and competitive business. By embracing the principles of double materiality, investing in advanced ESG systems, and fostering a culture of transparency and collaboration throughout the supply chain, contractors can futureproof their operations. This shift from a traditional, compliance-focused mindset to a strategic, sustainability-led one will ultimately define success in a market where clients and investors increasingly demand verifiable proof of environmental and social responsibility.
ABOUT THE AUTHOR
Alan Deane joined Vision Contracting in 2014 and became Head of Sustainability (ESG Lead) in 2024. He spearheads CSRD compliance, collaborating with leadership, teams, clients, and stakeholders. Alan also drives the development and implementation of the company’s ESG goals.
The company’s Health & Safety, HR, and Sustainability & ESG Champions are also key drivers in making Vision a truly ‘Sustainable Contractor’.
ABOUT VISION CONTRACTING LIMITED
Vision Contracting Limited’s ESG plans are fully integrated with its core company objectives. Built on established environmental management practices, planning, and compliance standards, such as ISO 14001, its sustainability policies and procedures are robust. Recognising its broader societal responsibility, Vision Contracting ensures its entire team shares the commitment to compliance.