When it comes to sustainability, the winners are the forerunners. Companies need to take sustainability seriously, because their customers, financiers and the law that comes from EU demand it.

The topic was discussed more closely in Boardman’s Kaamosfoorumi on November 16th, 2023, by Rochier’s Partner Seppo Kymäläinen, Huhtamäki’s CEO Charles Héaulmé, Paulig Group’s CEO Rolf Ladau and Raute’s CEO Mika Saariaho.

Kaamos Forum was organized in Saariselkä on November 16th and 17th, 2023.

It became clear from the discussions that if the company does not take sustainability seriously, its business will fade away in the future. However, not everything can or should be done and measured.

Every company should decide its own ESG goals and be realistic in those. ESG needs to be at the core of the company’s strategy, and the whole company, especially people in the leadership positions, need to commit to it.

Commitment should be remembered, because transforming the company to a more sustainable is not financially profitable in the short term.

Sustainability reporting becomes mandatory for more companies

So far, the majority of sustainability reporting has been voluntary for many companies and the reporting requirements have not been standardized. This will not be the case for much longer. The driver for the change comes from the EU, and it is known as CSRD (Corporate Sustainability Reporting Directive).

CSRD broadens the scope of sustainability reporting and aims to align it more closely with financial reporting over time, and it changes in Finland, for example, the Accounting Act, the Auditing Act and the Companies Act.

Roschier’s Partner Seppo Kymäläinen said that CSRD will have a major effect on reporting.

The primary purpose of the CSRD is to provide more detailed data to financial market participants. When sustainability is reported in detail throughout the EU according to specific standards, sustainability information becomes more reliable, and it enables investments to the most sustainable investment opportunities.

CSRD is implemented from the start of 2024

CSRD will gradually apply to approximately 50 000 companies operating in the EU. The reporting obligation applies first to PIE companies (Public Interest Entities), which have previously been subject to the NFRD (Non-Financial Reporting Directive).

The sustainability reporting obligation for these entities under the new standards begins with the financial year 2024. Later, the reporting obligation will expand to include, among others, other large enterprises and specific listed small and medium-sized enterprises.

How to bring sustainability to the center of the game?

• First, make sure that the owners of the company and management are committed to sustainability.
• Create a strategy that includes ESG. Remember to select your own fights – do not try to focus on everything.
• Select ambitious but realistic goals. For example: By 2030, all of the company’s operations will be carbon neutral. What cannot be changed, will be compensated.
• Once the decision to move towards more sustainable business is made, commit to it. This should be carried out all the way, as moving towards a more sustainable way of doing things is not profitable in the short term.
• Hire ESG people to your company and ask for help from consultants.
• Do not think of sustainability as a one-time project. When you jump on the sustainability train once, you’re always on board.

Raute’s CEO Mika Saariaho said that they have brought ESG at the core of the growth strategy.

Let ESG Guide help youI

Boardman has, together with its partners PwC and Futurice, written an ESG guide that provides an overview of ESG themes and reporting requirements. It includes checklists and questions for the board of directors and management to consider.

The guide is updated annually to address the newest reporting requirements.

Download the free guide for yourself here!

Text: Karoliina Kuhalampi

Pictures: Julia Ruotsi