Accelerating the green transition requires measures to steer financing towards more sustainable production and consumption patterns. This means, very soon all Nordic companies must keep a record of climate footprint, measure and report on circularity.
However, today’s standards for sustainability reporting are developed with the large companies in mind and is difficult for smaller companies to adopt. We need a Nordic objective reporting standards that are applicable for SMEs.
With co-funding from Nordic Innovation, the national accounting organizations in Norway (Regnskap Norge), Sweden (Srf konsulterna) and Finland (TAL) have now launched the first edition of the Nordic Sustainability Reporting Standard (NSRS) – a sustainability reporting standard with the smaller companies in mind, but comparable with established international standards.
The standard consists of 11 steps with 64 reporting requirements, and has been piloted with Nordic SMEs.
The Nordic Sustainability Reporting Standard framework consists of the NSRS Foundation, NSRS Reporting Requirements, NSRS Implementation Manual Level 1, NSRS Implementation Tool Level 1, NSRS Report Index Level 1, NSRS Glossary, NSRS Theoretical Annex and an example report prepared with NSRS Level 1.
We will create a standard that makes it easy for the smaller companies to deliver on sustainability. The support from Nordic Innovation enables this.
Christine L. Larsen, former CEO, Accounting Norway
Why is a sustainability standard important for SMEs?
The demand for validated and comparable sustainability reporting will increase in the Nordic area regardless of company size.
The EU is moving towards a sustainable economic system. The Nordic countries will be affected by EU's progressive transition. Large companies are already obligated to report their sustainability work. This will lead to further requirements of their suppliers – the small and medium size companies. Eventually, banks' expectations and legislations regarding sustainability reporting will include all businesses.
Additionally, we need Nordic companies that actively cooperate to create a new framework for sustainable products and develop new solutions that have a net positive climate effect. Those companies that rethink the business model will have a major competitive advantage.
The Nordic Sustainability Report will help Nordic SMEs to stay relevant in public and private tendering processes, classify for green loans, add value for their costumers and stay up to date in a fluctuation regulative landscape.
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Who is the Nordic Sustainability Reporting Standard for?
The Nordic Sustainability Reporting Standard is designed with three user groups in mind: SMEs; accountants; and stakeholders seeking non-financial data. Below is a list over possible benefits of using the standard for each user group.
SMEs
The NSRS is a simple and tangible guide and toolbook for your accountant, so you can get the help you need to stay up to date on your sustainability reporting:
- Stay relevant in public and private tendering processes
- Classify for green loans with competitive interest
- Add value for your consumers
- Stay up to date in the fluctuating regulative landscape
- Use the standard as a transition tool for your business
Accountants
In many cases, the accountant is the closest advisor for SMEs. With NSRS, you as an accountant can:
- Add a service to your core activities.
- Gain a competitive advantage in the green economy.
- Extend your knowledge base in regards of the green transition.
- Be a change-maker.
Stakeholders seeking non-financial data
For investors, large companies, banks, government, consumers and other stakeholders who are seeking insight into non-financial data in the SME they are involved with.
- Easier for you to collect non-financial data
- Comparability between actors
- Easier to develop targets and goals
- Be a change-maker
Project background
The Nordic Sustainability Reporting Standard was developed throught the project with the same name and was co-funded by Nordic Innovation through a call for proposals on Circular Cities & New Circular Solutions in our Nordic Sustainable Business Transformation Program. The program, which runs from 2018–2021, aims to challenge Nordic industries to a adapt to a circular future.
Read more about the Nordic Sustainable Business Transformation program
The Nordic Sustainability Reporting Standard is a concrete tool for small and medium-sized businesses to be a part of the circular transition. Developing the standard on a Nordic level have several benefits.
For example, the standard will make cross-border transactions between businesses easier, helping them seize new business opportunity – and governments may use the framework in policy-work and integrate it as a part of public purchases.
In sum, the Nordic Sustainability Reporting Standard contributes to the Nordics taking a lead in the sustainability transition, and thereby becoming a pioneer by showcasing what integration between countries can look like.
