Watershed launches new software solution to aid compliance with EU’s CSRD

Watershed, a leading provider of climate solutions software, announced the introduction of “Watershed for CSRD,” a cutting-edge software solution designed to assist companies in collecting and managing data for disclosure under the European Union’s new Corporate Sustainability Reporting Directive (CSRD).

The CSRD, which became applicable to certain companies at the start of 2024, mandates expanding the number of businesses required to furnish sustainability disclosures. This directive will encompass over 50,000 companies, substantially increasing from the approximately 12,000 currently covered. 

Moreover, it will introduce more comprehensive reporting requirements regarding company impacts on the environment, human rights, social standards, and sustainability-related risks. Over time, the CSRD will extend its purview to include numerous large non-EU-based enterprises operating within the EU.

According to Watershed, their innovative solution empowers companies to collect, compute, and manage the complete array of Environmental, Social, and Governance (ESG) data mandated under the CSRD, spanning over 1,100 data points. Key features of the solution include guided workflows and project management tools aimed at enhancing collaboration across various departments such as sustainability, finance, compliance, audit, IT, and supply chain. 

Additionally, an automated report builder aids in identifying data gaps or inaccuracies while tracking progress against CSRD standards. Watershed’s platform also offers data governance tools and permits access for external auditors.

Having launched in 2019, Watershed’s platform boasts a comprehensive climate database for detailed emissions measurement, specialized software tools for sustainability reporting and supply chain engagement, and a marketplace for carbon removal and clean power. The introduction of this new solution follows a significant $100 million capital raise by Watershed earlier this year, with the fresh funding earmarked for supporting the company’s expansion efforts and investments in emissions measurement, sustainability reporting, and decarbonization solutions.