WHAT EXACTLY IS SUSTAINABILITY REPORTING?

Have you heard that the EU's new Corporate Sustainability Reporting Directive (CSRD) is being introduced now, from the 2024 financial year? And do you know how this actually affects you and your business?

In Norway, the Accounting Act sets requirements for how you should report on sustainability, and the Transparency Act sets requirements for how you collaborate with suppliers. Through the EEA Agreement, Norway is part of the EU's Green Deal, which means that we must comply with the EU's new Sustainability Directive (CSRD).

This directive aims to ensure meaningful and standardized reporting of sustainability information by companies, broken down by risks, opportunities and impacts. The CSRD sets out reporting requirements and is mandatory for all large European companies and those listed on EU regulated markets, including EU subsidiaries of non-EU parent companies.

At present, around 300 Norwegian companies are covered by the sustainability reporting requirement, but this will increase to an estimated 1,200. Initially, this applies to larger companies (based on number of employees and turnover), but from 2026 it will also apply to listed small and medium-sized companies.

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Which data should be reported?

CSRD covers a wide range of different metrics and data within environmental, social and governance aspects. Within the social area, there are a large number of HR data points. Examples include organization demographics and composition, annual total compensation, base salary, gender pay gap, maternity and family leave, number of sick days, hours spent on overtime, training, employee development, occupational health and safety, and so on. These requirements include, but also go beyond, the requirements that follow from gender equality and discrimination reporting requirements, and largely apply to both contracted and permanent employees. You must also be able to document changes in data over time.

What does sustainability reporting mean for HR?

In the section above, it is clear that HR and sustainability reporting are closely linked, and the two areas that directly impact HR are the sections 'Own workforce' (ESRS S1*)) and 'Business conduct' (ESRS G1*)). Both of these areas will require documentation of policies and processes, as well as specific data points and figures about the workforce. This means two things:

  1. HR-Good quality master data is more important than ever
  2. HR has now moved all the way up to the boardroom

Companies can no longer claim to be a great place to work or have a healthy work-life balance without documenting it. Future generations of talent, customers and investors will look for these numbers when evaluating your organization. The good news? HR can make a difference as a strategic business partner.

How do I collect all this HR data and where do I store it?

The process of collecting and recording CSRD-related data for sustainability reporting can, of course, be done manually, but since you need to report on these figures every year (and track the progress and development of these figures), you should consider investing in a digital HR master data solution that actually supports the reporting standard.

Do you have full control of your HR master data?

Is HR data and other information easily accessible in a user-friendly and intuitive solution? Do your master data solution and HR systems have simple and user-friendly processes for HR, managers and employees, so that the right information is recorded once, and reused automatically where needed? Do your master data solution and HR system have reports and analysis tools prepared for the requirements set by authorities for sustainability reporting, equality, equity and diversity (DEI)?

Can't answer yes to all this? Don't worry, we have the solution and are more than happy to help you ->

SAP SuccessFactors - HR the master data system for the future

SAP SuccessFactors Employee Central is a cloud-based HR platform that gives you full control over your company's master data. SAP SuccessFactors Employee Central The software, along with other modules, gives you full visibility of your entire workforce, and you can easily combine employee data with financial and operational information from external systems. This gives you a holistic insight that makes it easier to make good decisions. Sariba has developed standard reports and analytical tools (dashboards) that meet all requirements for HR data points related to CSRD reporting, working environment, equality and diversity. If your organization has special needs, we can of course solve this too.