There’s been a buzz around CSRD reporting lately. Our recent webinar explored whether it’s worth investing in sustainability reporting and how the upcoming Omnibus vote in the European Parliament could impact businesses. Read our highlights and watch the recording below.
The European Parliament will vote on parts of the Omnibus proposal on April 1. In our joint webinar with Sustashift, we dove into how the potential outcomes of the vote could affect companies. The discussion also covered the benefits of sustainability reporting from a business development perspective.
The speakers were Pasi Nokelainen, Head of Sustainability at Kaskas, and Verneri Laakkonen, CEO of Sustashift, a provider of sustainability reporting tools.
Laakkonen addressed the current state and future of CSRD reporting from a legislative standpoint. His talk unpacked the possible outcomes of the Omnibus vote and their implications for businesses. Nokelainen provided practical steps and tips for how companies can make the most of reporting and prepare for regulatory changes.
Scroll down for three key takeaways from the session — and watch the full recording at the bottom of the post.
1. Sustainability reporting helps mitigate risks and improve business performance
Many companies in the so-called second wave of CSRD reporting are now asking whether the investment is worthwhile. Both Laakkonen and Nokelainen emphasized that sustainability reporting can significantly support business development.
“Even if your company isn’t yet required to report, risks can still impact your business. If you don’t know what those risks are, you should look into them. And if you’re unaware of your opportunities, leadership needs to reflect on how to improve and develop the business,” Laakkonen said.
He shared examples of how reporting can help companies identify opportunities to improve energy efficiency — leading to significant cost savings. Taking care of employee well-being, for example, can also strengthen a company’s competitiveness.
“When used effectively, sustainability enables a company to influence society, access new forms of financing, and develop innovative business models. This is where the magic happens.”
— Pasi Nokelainen
Nokelainen emphasized that companies should carefully consider why reporting is relevant to them.
“I don’t want to downplay the importance of risk management, for example. But when used effectively, sustainability enables a company to influence its industry and society, access new forms of financing, and develop new business models. This is where the magic happens,” Nokelainen added.
He also pointed out that reporting itself should not be overemphasized:
“Reporting is the final phase of a company’s sustainability work — it’s where you communicate what has been done. The real substance lies in what comes before, such as the sustainability program — that’s where the reportable actions are actually created.”
2. Investors’ need for information isn’t going anywhere
Laakkonen highlighted that one of the core purposes of sustainability reporting is to provide comparable data to investors. Even if regulations change, the need for transparency remains — financiers still need to know whether a business is sustainable or not.
“It’s unfortunate if companies don’t communicate about their operations and, as a result, miss the opportunity to access green funds or bonds.”
— Verneri Laakkonen
If, for example, a private equity fund is classified as a sustainability-promoting fund, it has reporting obligations that must be fulfilled. If a company seeking investment from such a fund cannot provide the required information, it cannot be part of the fund.
3. Citizens and business leaders value sustainability
In his presentation, Nokelainen shared data from the Climate Barometer and Nature Barometer. According to these surveys, 80 percent of Finns believe that companies should take action to reduce emissions. In addition, many believe that if a company harms the environment through its operations, it should be held accountable for the costs it causes.
“Climate change and biodiversity loss haven’t been cancelled just because legislation changes.”
— Pasi Nokelainen
According to an international survey conducted by Kearney with 500 business leaders outside the EU, 92 percent of CFOs say they are increasing their investments in sustainability. More than half report significantly increasing their sustainability investments, and the expected returns on these investments are higher than those of traditional ones. Additionally, two-thirds of CFOs say they also measure the cost of inaction.
“Climate change and biodiversity loss haven’t been cancelled just because legislation changes. Investing in corporate sustainability efforts and reporting is still worthwhile,” Nokelainen concludes.
Watch the recording of our webinar on sustainability reporting
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