ESG Report (CSRD / ISSB)

Overview

Compile Environmental, Social, and Governance reports aligned with CSRD/ESRS and ISSB/IFRS S1-S2. The skill walks through the full workflow — double materiality assessment across all ten ESRS topical standards, GHG emissions collection and arithmetic validation against the GHG Protocol, and structured report drafting with a professional template. Two automated tools catch materiality logic gaps and emissions math errors before the report is finalised.

Getting Started

Activate the ESG Report (CSRD / ISSB) skill and tell the agent your organization name, reporting period, and which framework(s) apply (CSRD, ISSB, or both). If you have existing emissions data, sustainability reports, or interview notes, add them to the workspace. The agent will guide you through materiality assessment, data collection, validation, and report drafting.

Example Conversation

You: We need to create our first ESG report under CSRD. We’re a manufacturing company with ~800 employees, facilities in Germany and Poland, and we have Scope 1 and 2 data from last year but haven’t done Scope 3.

Agent: I’ll guide you through the full CSRD/ESRS workflow. I’ve created esg-data.json and set the framework to CSRD/ESRS. Let’s start with the double materiality assessment — we need to evaluate all ten ESRS topical standards (E1–E5, S1–S4, G1) from both an impact and financial perspective. Starting with E1 (Climate Change): your manufacturing operations likely involve significant direct emissions. What are the primary energy sources at your plants?

You: Natural gas for the furnaces and grid electricity. We emitted about 1,250 tCO2e Scope 1 and 2,100 tCO2e Scope 2 (location-based) last year. We also have RECs that bring market-based Scope 2 down to around 900 tCO2e.

Agent: Good — I’ve added E1 Climate Change as material (high impact severity, medium financial likelihood due to EU ETS exposure and carbon pricing transition risk) and populated Scope 1 and Scope 2 in the data file. Let me continue through the remaining standards. For E2 Pollution — do your furnaces produce air emissions beyond CO2, and do you handle substances of concern?

You: Yes, some NOx and particulate matter from the furnaces. We have permits for those. E3 Water isn’t significant for us, and E4 Biodiversity doesn’t apply — we’re in an industrial zone.

Agent: I’ve assessed E2 as material (regulated emissions, permit compliance risk) and E3 and E4 as not-material with rationale. Continuing through E5, S1–S4, and G1…

Agent: All ten standards are assessed. Let me run double_materiality_mapper to validate the assessment…

Agent: Here are the results:

— ERRORS (1) — [ERROR] s2_value_chain_workers (Workers in the value chain): Impact materiality not assessed. Double materiality requires evaluating effects on people and environment.

— WARNINGS (2) — [WARNING] e2_pollution (Pollution): Material topic lacks financial materiality rationale. Explain the financial risks or opportunities. [WARNING] materiality_assessment: ESRS topical standards not addressed: ESRS E5. Each standard must be explicitly assessed as material or not-material.

We need to fix three things: (1) assess impact materiality for S2, (2) add a financial rationale for E2, and (3) add an assessment for E5 Resource Use and Circular Economy. For S2 — given your manufacturing supply chain, are there labour-condition risks with raw material suppliers?

You: Good catch. Our steel suppliers are mostly European, so risk is lower, but we should still assess it. For E5 — we do generate significant metal scrap that we recycle. Let me also add the financial rationale for E2: non-compliance with air permits could lead to production shutdowns.

Agent: Updated all three. Re-running double_materiality_mapper… All checks passed. Now let’s move to GHG emissions. I already have Scope 1 (1,250 tCO2e) and Scope 2 (2,100/900). For Scope 3, we need to go through all 15 GHG Protocol categories. I’ll start with the ones likely most material for manufacturing. Category 1 — Purchased goods and services: do you have spend data or supplier-specific emissions for steel, aluminium, or other materials?

You: We spent about €45M on raw materials last year. No supplier-specific data yet.

Agent: I’ll use the spend-based method with EEIO factors for now. I’ve estimated Category 1 at approximately 8,500 tCO2e. Let me populate the remaining categories and run ghg_protocol_sync…

Agent: Running ghg_protocol_sync on the emissions data:

— EMISSIONS SUMMARY — Scope 1 (direct): 1,250.00 tCO2e Scope 2 (location): 2,100.00 tCO2e Scope 2 (market): 900.00 tCO2e Scope 3 (value chain): 15,400.00 tCO2e Categories included: 11, excluded: 4 TOTAL: 18,750.00 tCO2e

— WARNINGS (2) — [WARNING] Scope 3 Cat 10: Category 10 (Processing of sold products) is not listed. All 15 categories must be addressed. [WARNING] Scope 3 Cat 13: Category 13 (Downstream leased assets) is excluded without rationale.

Two gaps: Cat 10 needs to be assessed (do your customers process your products further?), and Cat 13 needs an exclusion rationale. Everything else checks out — arithmetic is correct.

You: Cat 10 — yes, our customers do further processing. Cat 13 — we don’t lease any assets, so that’s not applicable.

Agent: Added Cat 10 as included (estimated at 1,200 tCO2e based on downstream processing energy) and Cat 13 as excluded with rationale “No downstream leased assets.” Re-running… All checks passed. The data is ready — let me draft the full report from the template now.

Output Excerpt

After the agent validates all data and drafts the report, the output covers governance, strategy, the full materiality assessment, and detailed GHG emissions. Here is a representative excerpt from the double materiality and climate sections:

# ESG Report — Müller Manufacturing GmbH

**Reporting Period**: FY 2024 (1 January – 31 December 2024)
**Framework**: CSRD / ESRS
**Date of Publication**: March 2025

---

## 5. Double Materiality Assessment

### 5.1 Methodology

The assessment followed ESRS 1 requirements. All ten ESRS topical standards
were evaluated across both impact materiality (effects on people and
environment) and financial materiality (risks and opportunities affecting the
company's financial position). The process included a management workshop,
input from employee representatives, and review by the supervisory board.
Materiality thresholds were set at "medium" or above on either dimension.

### 5.2 Material Topics

| Topic                   | ESRS     | Impact Severity | Financial Magnitude | Classification |
|-------------------------|----------|-----------------|---------------------|----------------|
| Climate change          | ESRS E1  | High            | High                | Material       |
| Pollution               | ESRS E2  | Medium          | Medium              | Material       |
| Resource use & circular | ESRS E5  | Medium          | Low                 | Material       |
| Own workforce           | ESRS S1  | Medium          | Medium              | Material       |
| Business conduct        | ESRS G1  | Medium          | Medium              | Material       |

### 5.3 Topics Assessed as Not Material

| Topic                        | ESRS     | Rationale                                                      |
|------------------------------|----------|----------------------------------------------------------------|
| Water and marine resources   | ESRS E3  | Minimal water use; no operations in water-stressed areas.      |
| Biodiversity and ecosystems  | ESRS E4  | Facilities located in existing industrial zones; no impact.    |
| Workers in the value chain   | ESRS S2  | EU-based supply chain; existing supplier code of conduct.      |
| Affected communities         | ESRS S3  | No significant community impacts identified; industrial zone.  |
| Consumers and end-users      | ESRS S4  | B2B products with no direct consumer safety exposure.          |

## 6. Environment

### 6.1 Climate Change (ESRS E1)

#### GHG Emissions

| Scope                    | tCO2e      | Methodology                              |
|--------------------------|------------|------------------------------------------|
| Scope 1 (direct)         | 1,250.00   | Fuel records, IPCC AR6 emission factors  |
| Scope 2 (location-based) | 2,100.00   | IEA grid emission factors 2024           |
| Scope 2 (market-based)   | 900.00     | Supplier RECs, residual mix factors      |
| Scope 3 (value chain)    | 16,600.00  | Mixed methods (see breakdown)            |
| **Total (location)**     | **19,950.00** |                                       |

Year-over-year change: −6.7% (prior year: 21,400 tCO2e). The reduction is
primarily attributable to the procurement of renewable energy certificates
(Scope 2 market-based reduction) and efficiency improvements in furnace
operations (Scope 1).

##### Scope 3 Breakdown

| #  | Category                           | Included | tCO2e    | Method / Exclusion Rationale                       |
|----|------------------------------------|----------|----------|----------------------------------------------------|
| 1  | Purchased goods and services       | Yes      | 8,500.00 | Spend-based (EEIO factors, €45M raw materials)     |
| 2  | Capital goods                      | No       | —        | No significant capital expenditure in FY 2024      |
| 3  | Fuel- and energy-related (not 1/2) | Yes      | 420.00   | T&D losses and upstream extraction factors         |
| 4  | Upstream transportation            | Yes      | 1,850.00 | Logistics provider data (tkm-based)                |
| 5  | Waste from operations              | Yes      | 310.00   | Waste mass by treatment type                       |
| 6  | Business travel                    | Yes      | 450.00   | Distance-based from travel booking system          |
| 7  | Employee commuting                 | Yes      | 320.00   | Employee survey (n=640), transport-mode averages   |
| 8  | Upstream leased assets             | No       | —        | No upstream leased assets                          |
| 9  | Downstream transportation          | Yes      | 780.00   | Estimated from shipping records                    |
| 10 | Processing of sold products        | Yes      | 1,200.00 | Customer processing energy estimates               |
| 11 | Use of sold products               | Yes      | 1,940.00 | Product lifetime energy modeling                   |
| 12 | End-of-life treatment              | Yes      | 230.00   | Material composition, recycling rates              |
| 13 | Downstream leased assets           | No       | —        | No downstream leased assets                        |
| 14 | Franchises                         | No       | —        | No franchise operations                            |
| 15 | Investments                        | Yes      | 600.00   | Equity-share method for minority holdings          |

#### Emission Reduction Targets

| Target                    | Base Year | Current  | Goal       | Target Year | SBTi   |
|---------------------------|-----------|----------|------------|-------------|--------|
| Total GHG (abs.)          | 2020      | 19,950   | 12,500     | 2030        | Pending |
| Scope 1+2 intensity       | 2020      | 4.18     | 2.50       | 2030        | —       |
| (tCO2e per €M revenue)    |           |          |            |             |        |

All emissions figures are validated by the ghg_protocol_sync tool — subcategory sums match scope totals, and the grand total equals Scope 1 + Scope 2 + Scope 3. The materiality classification was validated by double_materiality_mapper to confirm both impact and financial dimensions are assessed for every topic with rationale.

Extension Tools

The skill includes two validation tools that check the structured data file before the report is finalised.

double_materiality_mapper validates the materiality assessment against CSRD/ESRS rules:

• Both impact and financial materiality dimensions are assessed for every topic
• Material topics have rationale explaining why they are material
• Not-material topics have rationale explaining why they were excluded
• Classification is consistent with severity/magnitude ratings (e.g. high severity + “not-material” = error)
• All ten ESRS topical standards (E1–E5, S1–S4, G1) are explicitly addressed
• Stakeholder input is recorded for material topics

ghg_protocol_sync cross-checks Scope 1, 2, and 3 emissions against GHG Protocol standards:

• Scope 1 subcategory sums match the reported total
• Scope 2 has location-based (required) and market-based (recommended) figures
• All 15 Scope 3 categories are listed — included with a tCO2e value, or excluded with rationale
• Included-category sums match the reported Scope 3 total
• Grand total equals Scope 1 + Scope 2 + Scope 3
• Year-over-year changes exceeding 20% are flagged for narrative explanation