Sustainability reporting – Transparency, impact and strategic guidance
Sustainability reporting is a way for a company to openly communicate the impacts of its operations on the environment, society and the economy. It is not just an obligation, but a strategic tool that supports business development, risk management and stakeholder trust.
Sustainability reporting – a clear and effective package for companies of all sizes
Corporate responsibility work is undergoing a transformation. The EU's new CSRD (Corporate Sustainability Reporting Directive) expands responsibility reporting obligations to thousands of European companies – including in Finland. At the same time, the complexity of emissions calculations, especially for indirect emissions in the value chain (scope 3), can seem confusing and difficult to manage.
🔹 Who does CSRD apply to?
The CSRD applies to large companies that meet at least two of the following criteria: more than 250 employees, a balance sheet of more than €25 million, or a turnover of more than €50 million. The obligations will gradually be extended to listed SMEs.
🔹 What about VSME?
Although small and medium-sized enterprises (SSMEs) are not directly required to report, they are often part of the supply chains of larger companies. SSME reporting helps meet ESG information requests from customers and financiers – and improves competitiveness.
🔹 Emissions calculation applies to everyone
More and more companies are demanding emissions data from their suppliers. Emissions accounting is a key part of sustainability reporting and influences the formation of financing, partnerships and customer relationships.
ESG report
An ESG report is a company's responsibility report that reports on the impact of its operations on three areas:
1. Environmental responsibility
The report includes information about the company's environmental impacts, such as:
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Greenhouse gas emissions and carbon footprint
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Energy consumption and use of renewable energy
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Consumption of materials and natural resources
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Waste generation and treatment
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Taking biodiversity into account
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Climate risk management
2. Social responsibility (Social)
The social dimension covers, among other things:
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Employee well-being and working conditions
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Equality and diversity
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Occupational safety and training
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Respect for human rights
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Impacts on local communities
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Supply chain responsibility
3. Good governance
Administrative responsibility includes:
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Ethical principles and values
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Transparent decision-making and reporting
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Prevention of corruption and bribery
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The role of the board and management in responsibility
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Integrating responsibility into strategy and risk management
4. CSRD and ESRS standards
The EU Sustainability Reporting Directive (CSRD) introduces expanded reporting obligations based on the European Sustainability Reporting Standards (ESRS). Small and medium-sized enterprises report according to the VSME standard. Companies must report sustainability information with the same level of accuracy as financial information.
5. Metrics and targets
The report includes both quantitative and qualitative metrics that describe:
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Sustainability goals
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Measures taken
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Achieved results and impacts
6. Stakeholder interaction
Sustainability reporting takes into account the expectations of different stakeholders and serves as a tool for dialogue. It shows how a company responds to social and environmental challenges.
7. Verification and reliability
Increasingly, sustainability reports are verified by an external expert, which increases their credibility and transparency.