A sustainability report is a document that allows companies to present their sustainability work to their stakeholders and gives information about their impact on the environment, society and the economy according to established frameworks. For Swedish companies that meet the CSRD Directive’s criteria, a sustainability report is a mandatory part of an annual report and must be verified by auditors according to the same requirements as financial information.
The content of a sustainability report according to CSRD
A sustainability report produced according to the CSRD Directive must follow ESRS standards, which cover twelve reporting areas. These include, amongst other things, a company’s impact on the climate, water and society, as well as emissions and energy efficiency. Additionally, a sustainability report covers topics such as the circular economy, consumers and a company’s employees. A report must describe both the impact that a company has on the external environment, as well as how sustainability issues affect the company’s operations according to double materiality analysis.
How a sustainability report differs from an annual report
A sustainability report is now an integrated part of the annual report for companies covered by the CSRD Directive. Previously, a sustainability report could be a separate document, but CSRD requires sustainability information to be included as part of the directors’ report with the same verification requirements as financial information. This enhances credibility and ensures that sustainability issues are treated as seriously as financial results.
Professional translation is important
For companies with international investors or operations in multiple countries, an English version is required. A language consultant with ISO-certified system support offers experts in CSRD and ESG terminology, copywriters for strategic sustainability texts, the four-eyes principle and an ICR (In Country Review) platform for client validation. See examples of some of the many annual reports with sustainability reporting that Fluid Translation has translated during the year.