The EU's new Sustainability Reporting Directive (CSRD) was adopted into Swedish law on July 1, 2024. This means that large companies will have to comply with new and more comprehensive rules on how they report their sustainability performance. The aim of the CSRD is to create more transparency and traceability so that the EU can achieve climate neutrality by 2050.
Although the new rules currently apply to large companies, large parts of the business community are affected. CSRD covers the entire value chain and extends companies' responsibility for sustainability issues beyond their own operations.
This obviously poses huge risks for those who do not yet prioritize sustainability issues, but also huge opportunities to respond to new needs. Here we highlight some areas where the new reporting requirements create opportunities for innovation - and where new solutions will be needed.
Data collection
To comply with CSRD, companies need to create new ways to collect sustainability data accurately and from many different sources, both inside and outside the company. Automation and real-time monitoring are important to manage large amounts of data effectively and reduce errors. It is also important that the new systems work well with the company's current systems so as not to disrupt daily operations.
Training programs
Knowledge and skills are the foundation of successful sustainability work. Employees need to understand the new rules and requirements that CSRD imposes on the company, including how to collect, analyze and report sustainability data. Training reduces the risk of error, can foster innovation and increase engagement with sustainability issues within the company. Therefore, new solutions that simplify and make upskilling accessible will be needed.
Verification technologies
Innovation of third-party verification technologies to ensure accuracy and integrity. Lack of control in their value chains is an increasingly critical issue for businesses, especially in sustainability.
Digital solutions
Implementing blockchain and AI for transparent and reliable tracking of value chains' emissions and sustainability practices.
It is also important to remember that reporting does not have an intrinsic value - the ultimate aim of the new requirements is to reduce climate change and secure our future on Earth. New solutions are needed across all sectors that reduce emissions, restore nature and create resilient communities.
