What is sustainability reporting according to CSRD?
CSRD means: Corporate Sustainability Reporting Directive, and is intended to contribute to increased transparency in the financial market and to companies working more systematically to reduce their environmental impact. The CSRD deals with environmental, social and governance (ESG) factors. The Nordic Swan Ecolabel, which is the official ecolabel of the Nordic region, can provide valuable insights to use in companies' sustainability reporting.
The directive equates sustainability reporting with financial reporting and therefore places higher demands on sustainability reporting than before.
Double materiality analysis provides key insights for your business
CSRD allows companies to analyze and understand the connections between their operations and the surrounding environment, and then strategize to reduce the environmental impact they cause. One tool to facilitate this work is to conduct a double materiality analysis. It maps:
- How the business affects climate, environment and other factors (inside-out analysis)
- How climate, environment and other factors affect the business (outside-in analysis)
The analysis maps the areas where the company's operations have the greatest impact on the environment. These areas must then be reported in detail.
Read more about double materiality analysis.
The Nordic Swan Ecolabel's methodology for developing requirements is based on a MEKA analysis and an RPS analysis, among other things. They can be of great help to those who are going to report on sustainability according to the CSRD. You can find both of these analyses in the background documents of our criteria.
Scandic is a good example of a company that has used the Nordic Swan Ecolabel in its sustainability reporting. You can find their report here.
The CSRD, which is an EU directive, came into force in Sweden in July 2024. The rules apply to more companies than before and place higher demands on the content of the reports. In April 2025, the EU decided that certain companies should be given more time before the requirements come into force.