Clear and transparent sustainability reporting
Investing time and resources into your sustainability reporting is not only a legal requirement for many, but it is also a strategic decision that will help your business remain relevant in the long term. A company’s sustainability work should be clearly linked to your brand. It will also have a direct impact on your ability to access capital, make the most of business opportunities and to foster the trust of your customers.
Sustainability reporting also enables companies to identify and manage any risks related to climate change, social factors and governance issues in a systematic way, helping businesses take proactive measures to reduce negative impacts on the environment and society, which in turn can lead to increased long-term profitability and sustainable growth.
Sustainability reporting and the EU’s new European Sustainability Reporting Standards (ESRS)
The EU’s new CSRS Directive came into force in 2023 and, with it, the requirements for sustainability reporting increased. The CSRD is the regulatory framework that dictates what should be reported, and the ESRS is the standard for how it should be reported. The ESRS is the common reporting framework that is now in the process of being phased in for different-sized companies at different rates. These rules are part of the EU's ambition to improve transparency and accountability around companies' sustainability performance and to create more consistent and comparable reporting at an international level. For companies, it means an increased obligation to report on their environmental, social and governance (ESG) performance.
The importance of the ESRS
The new ESRS regulations require companies to report more comprehensively and in greater detail about their sustainability actions and results. The regulations focus on providing stakeholders with a clear picture of how companies are managing their environmental and social risks and opportunities. The ESRS requires companies to include both quantitative and qualitative information in their reports, including targets and results for climate impact, resource use, working conditions and governance structures.
For companies that have not yet implemented sustainability reporting, adapting to the new rules can be a challenge. However, putting sustainability at the heart of your company’s strategy and reporting is an investment in your company’s future. It builds trust among investors, customers and other stakeholders and enables you to drive sustainable change that has a positive impact both economically and socially.
Read our articles about the importance of clear communication in sustainability reports and the new regulations.
Translation of sustainability reporting
With new regulations and new terminology, publishing your report in two or more languages will become an even greater challenge. At Fluid Translation, we have many years of experience in sustainability reporting and a large network of experts who are ready to help you with the transition to a new reporting standard.
Ahead of the 2024/2025 annual and sustainability reporting season, Fluid's sustainability terminologist developed a completely new term database that reflects the new nomenclature. Many of our clients are LargeCap companies that are already required to partially report in line with the ESRS framework. Many others are now laying the groundwork and preparing to transition to ESRS during the coming year. Clients such as AFRY, AAK and NIBE hire us to carry out the translation of their sustainability reporting, confident that we have the right expertise and the resources required to convey their important messages about sustainability work to investors and stakeholders worldwide.
Read more about sustainability reports that we have translated for ETS NORD and the Indutrade Group.