Tanja Pakarinen, our EQHS & Sustainability Engineer, has written a blog post about Corporate Sustainability Reporting Directive. Read it below.
The Corporate Sustainability Reporting Directive (CSRD) is a European Union directive that came into force in January 2023, directly applicable to progressively listed and large companies, with the aim of improving the quality, comparability and transparency of corporate sustainability reporting. In Finland, the Directive is part of national legislation. The report will be part of the annual report accompanying the financial statements and will carry the same weight as the company’s financial reporting. We at Stalatube, as a Finnish manufacturing company, are committed to complying with these new requirements and will produce our first sustainability report in 2026.
A key element of CSRD reporting is the European Sustainability Reporting Standards (ESRS), which provide uniform principles and requirements for corporate sustainability reporting. These standards ensure that sustainability reporting is comparable, reliable and understandable. This helps our stakeholders to make data-driven decisions and compare companies’ performance in sustainability-related activities.
At Stalatube, we prepared for reporting by conducting a materiality assessment, which identified and assessed both the risks and opportunities that could affect the achievement of our strategy and objectives, and the material impacts of our operations on society and the environment. This assessment helped to identify the material issues to be reported on and laid the groundwork for reporting. The assessment included a review of all ESRS sustainability issues, stakeholder consultation and a description and assessment of sustainability impacts, risks and opportunities.
In addition, the company’s current practices and reporting practices were analysed and how they meet the requirements of sustainability reporting. This step will help us to design the necessary actions and targets for successful reporting. The next step is to prepare the actual report. The report should be clear, comprehensive and easy to understand for stakeholders, and comply with the requirements of the ESRS standards.
Reporting will provide us with many benefits, such as tackling greenwashing, taking into account stakeholder feedback and requirements, understanding the value chain and identifying risks and opportunities. Previous work on sustainability issues, such as calculating company-level emissions under the GHG Protocol, commitment to the SBT initiative and knowledge of the product life cycle (EPD and LCA), will benefit the reporting.
Sustainability reporting not only helps us meet legal requirements, but also gives us the opportunity to gain a competitive advantage in the market. Meeting the changing sustainability challenges supports Stalatube’s efforts towards more sustainable business. Stakeholders, such as customers, investors and public authorities, need access to a wide range of reliable information about the company’s business. The Sustainability Report helps to meet these expectations and to improve transparency and accountability. Being externally audited, the report improves reliability and increases stakeholder confidence in the company’s reporting.
ESRS standards are constantly evolving and we need to keep abreast of new requirements and updates. This requires constant monitoring and adaptation to changing regulatory requirements. Preparing for sustainability reporting and building the process requires careful planning, resources, changes to company practices and collaboration between departments. In the long term, improved transparency, reliability and stakeholder confidence will bring significant benefits. It is important that we see reporting as a platform for new business opportunities and a chance to improve sustainability management and transparency.