Sustainability Reporting is No Longer Voluntary

New requirements under the Corporate Sustainability Reporting Directive (CSRD) will affect larger and smaller Norwegian companies. Watch recording and highlights from our seminar.

We recently presented the new requirements under the Corporate Sustainability Reporting Directive (CSRD), and how this will affect Norwegian companies together with NCE Seafood Innovation, and PwC.

You can watch the recording of the webinar at our Member Area (for members of GCE Ocean Technology. Language: Norwegian).

Highlights from the Seminar

CSRD requires companies to report both on how they impact the environment, society, and governance (ESG), as well as how sustainability issues can affect their financial performance.

This "double materiality" approach requires reporting on both direct and indirect impacts.

The New Role of the Finance Department

CSRD mandates that sustainability reporting must be treated on par with financial reporting. This means that the finance department will play a much bigger role in sustainability efforts, and reporting must be accurate, traceable, and auditable, just like financial statements.

Stricter Reporting Requirements

Under CSRD, companies must report according to detailed European standards (ESRS). This includes reporting on ESG factors in their own operations and throughout the value chain, with both quantitative and qualitative data. The reporting must also cover future risk assessments and plans.

Cross-Departmental Collaboration is Essential

PwC emphasized that sustainability reporting cannot be handled by one person or department alone. It requires cross-departmental collaboration where multiple teams, including finance, governance, and operations, must be involved to meet the new requirements.

Who has to Report, and When?

Although CSRD comes into effect in 2024, there are some transition periods for specific sectors and companies. PwC clarified that the directive expands who is required to report, including large, listed companies and SMEs by 2026.

The Fight Against Greenwashing

A major challenge is ensuring that sustainability reporting is credible and does not contain false or misleading claims about sustainability. This requires strong internal processes, improved data quality, and greater transparency to avoid greenwashing – a problem that PwC highlighted as increasing in the business world.

94% of investors believe that companies' sustainability reporting contains errors (greenwashing). Therefore, it is important to increase trust in reporting” – Hanne Sælemyr Johansen, PwC.

Examples form Shearwater and Bolaks

The seminar also showcased practical examples of how sustainability reporting can be operationalized. Knut Arild Langeland from Shearwater and Samuel Anderson from Bolaks shared their experiences on how their companies have implemented report systems that meet the new standards.

Both emphasized the importance of a cross-disciplinary approach and the inclusion of the entire value chain in the reporting process.

Samuel Anderson highlighted the importance of gaining recognition within the organization that sustainability/ESG is our responsibility.

“It is not a one-man job. In Bolaks, we recognise the need for a cross-disciplinary approach to tackle the various challenges we face, like reducing emissions and dealing with salmon lice. “

Knut Aril Langeland emphasized the need to simplify the language. “Most of this is new to everybody, and the language consists of a lot of concepts and abbreviations – it is important to use a language that everyone understands”.

Langeland also showcased that sustainability also can be an economical advantage. “Shearwater's largest emission source by far is fuel for the boats we operate.

Fuel also costs money—if fuel consumption is reduced, expenses decrease, which means that the bottom line improves”.

What’s Next for Norwegian Businesses?

It became clear during the seminar that the implementation of CSRD will require considerable effort from Norwegian companies. Finance departments must prepare to manage large amounts of new data, work closely with sustainability teams, and ensure their reporting is both accurate and verifiable.

How to get Started

“Start early! You can’t do everything at the same time. Start with the "double materiality" so you know what your business have to report on and which resources it will demand” – John Wikström, PwC.