Sustainability Reporting – Rules, Challenges and the Way Forward

Sustainability reporting is no longer an optional corporate practice when the new EU-legislation is gradually introduced from 2024. In Sweden, we have strong traditions of responsibility and sustainability, and the regulations surrounding sustainability reporting are clear. In this post, we will explore the Swedish regulations regarding sustainability reporting, identify the challenges companies may face, and offer you a possible way through this challenging jungle.

Swedish regulations on sustainability reporting:

  • Annual Accounts Act: According to the Swedish Annual Accounts Act, large companies must include sustainability reporting in their annual accounts. Here, companies should report on social, environmental, and economic aspects that are relevant to their operations.
  • Global Reporting Initiative (GRI): Many Swedish companies follow GRI’s guidelines for sustainability reporting. GRI offers a comprehensive framework for reporting a company’s impact on society and the environment.
  • Swedish Association for Listed Companies (AFS 2014:12): Regulations for companies listed on the Swedish stock exchange require them to report on sustainability aspects that are material to their operations.

Challenges in sustainability reporting:

  • Data quality: Collecting, monitoring, and reporting sustainability data can be complex. Companies need to ensure data quality and have systems in place to manage it.
  • The breadth of reporting: Sustainability reporting is extensive and requires expertise in various areas. Companies need to strike a balance between reporting with enough detail and not overwhelming their stakeholders.
  • Legal changes and expectations: Regulations for sustainability reporting can change, and stakeholder expectations are rising. Companies must be flexible and forward-thinking.

Interim one possible solution

For companies facing the challenges of sustainability reporting in Sweden, an interim sustainability expert can be the perfect solution instead of or in addition to hiring. BayInCo is known for its expertise in sustainability and currently helps companies navigate the complex world of sustainability reporting.

BayInCo offers tailored solutions for companies, helping them to:

  • Identify material sustainability aspects: Help and assist companies in identifying the aspects most relevant to their operations and stakeholders.
  • Collect and monitor data: Expertise in collecting and managing high-quality data to ensure companies meet reporting requirements.
  • Create meaningful reports: Help companies report in a way that is meaningful to stakeholders and aligns with regulations and standards.

Sustainability reporting is no longer an optional exercise. It is a strategic advantage and an obligation. If your company needs help navigating this complex arena, consider reaching out to BayInCo interim consulting. Together, we can build a more sustainable future for Sweden and the world.

Click here to here more about what we can do for you or download the Sustainability Regulations, SOU 2023:35 in its entirety if you want to read more.