Get ready, we will be hearing a lot more about it…

Sustainability – a Hot Market

A lot has happened in the Sustainability Market in the last few years. According to Allied Market Research, the global green teach & sustainability market is forecasted to reach USD 48.36 billion by 2027. 

All kinds of companies and brands are starting to use the word “sustainable”, net-zero, and 100% slave-free in their marketing. Whether it is a t-shirt made from ethical cotton or an “eco” car – companies are increasingly keen to show off their green credentials. At worst, they make claims based on manipulated or biased research.

On the surface, this is good news. The climate crisis is the biggest threat to our existence, so if companies promise to reduce their carbon footprint, shouldn’t we celebrate?

Well,

NO! Read this article and you will understand!

Also, Investors are eager to invest in sustainable companies or impact companies – because they see that Sustainability is the future. However, they also believe ethical businesses will deliver better investment returns.

Investors are increasingly considering companies’ Environmental, Social, and Governance (ESG) activities when making investment decisions, and this sustainability trend will continue to accelerate.

Why lack of transparency and standardization creates an uncertain world

Data availability, quality, and comparability are critical to the success of ESG investments. Until now, the available date has not yet been sufficiently comparable.

While third-party ESG data providers help gather information about companies’ sustainability performance, their different methods limit the relevance of ESG scores. This lack of standardization is worsened by in-house developed methods and a lack of transparency around data collection, materiality, aggregation, and metric weighting.

Companies that use terms like “green” are not bound by any regulatory marketing standards. It allows several brands to advertise themselves with misleading claims and untruthful products.

In a world where greenwashing and fake news occur, this has led stakeholders to be skeptical of corporate sustainability promises!

On what basis can investors, customers, and business partners verify the truth?

The key to eliminating greenwashing is transparency and standardization.

And if transparency is the key to building trust among stakeholders, then data that can be verified is the key to achieving transparency.

It is about verifying and confirming the correctness, of a statement or a claim.

In a major step towards the establishment of a new sustainability reporting system in Europe, the European Parliament adopted the Corporate Sustainability Reporting Directive (CSRD)

The rules will begin applying from the beginning of 2024 for large public-interest companies with over 500 employees, followed by companies with more than 250 employees or €40 million in revenue in 2025, and listed SMEs in 2026.

The reporting requirements will be based on the ESRSs – European Sustainability Reporting Standards. 

Why another reporting framework?

In a nutshell, CSRD is the EU’s aspiration to strengthen and standardize European companies’ communication on sustainability-related information, by putting financial and non-financial information on equal terms.

ESRSs will streamline the most critical European policies and global sustainability standards into a single, unified framework.

This way, data reported by all business will be consistent, comparable, and aligned with both Paris Agreement & EU’s Green Deal (Net-zero emission by 2050).

Sustainability information will be on an equal footing with financial information where the ESRS specifies both qualitative (statements) and quantitative information (data) to be disclosed, using both a retrospective and forward-looking approach.

What are the main challenges for companies?

• ESG is entering the annual reporting process.
• Sustainability information will sit alongside financial information.
• The amount of data that needs to be collected will significantly increase.
• Sustainability statements will have to be audited by an accredited 3rd party.
• Double Materiality will enter the reporting.

What will the standards require companies to disclose?

The first drafts of ESRSs have been published.

We had a look at what kind of climate-related reporting will be required.

A transition plan and strategy: How the company takes the climate-related risks and opportunities into account and how they impact their core business.

Policies, actions and resources the company has adopted to manage climate-related risks and opportunities.

Metrics and measurable climate-related targets: All scopes (1-3)

If the business has a net-zero emissions target, it must disclose the scope, methodologies and frameworks appiled.

Current greenhouse gas emissions: All scopes (1-3)

Scope 3 includes emissions occurring in the company’s value chain. For the food industry, this is the primary source of emissions, hence particularly important to report as precisely as possible.

Greenhouse gas emission reductions and removals, all scopes (1-3)

Again, measuring and reporting Scope 3 reductions in a credible way will be particularly important as Scope 3 has the most impact on total greenhouse gas emissions in many industries such as the food industry.

Sound like a lot?

No worries. You can start to prepare today by using a framework that is already here and covering a lot of the topics!

We help you by following the steps;

1. We measure your level of maturity, find your gaps and help you to decide the way forward. Click here to measure your level of maturity!
2. Your sustainability work and statements can already get verified by VERIFY AGENCY which will strengthen your competitiveness and future-proof your business. Take a look at these inspiring reference cases.
3. The program to verify is ISO 26000 Sustainability Standard and its self-declaration.

I hope these recommendations can help you in your work to prepare for the new EU regulation for sustainability reporting, which will be here in just about 6 months.

Inlägget How To Verify Your Sustainability Work in Line with the New CSRD! dök först upp på VATI of Sweden.

The new EU directive, which will enter into force next year, entails more comprehensive requirements for companies’ sustainability reporting as well as verification of companies’ sustainability work.

– An early adoption of a verifiable sustainability work means an easier transition once the EU directive is put into force, says Eva Vati, CEO and founder of VERIFY Agency of Sweden.

Strengthens brand and raises competitiveness
VERIFY Agency of Sweden is accredited by Swedac, Sweden’s national accreditation body, to verify companies’ claims, including sustainability reports. The verifications are done according to the international sustainability standard ISO26000. Sweden is the first country in the world to offer this opportunity.

– Verification of a company’s sustainability statements by an accredited third party is a good way to strengthen the brand and rise competitiveness. This is why Mazars in Croatia partnered up with VERIFY Agency from Sweden, says Vali Marszalek, ESG Director at Mazars in Croatia and responsible for providing sustainability services to Mazars clients in the Adria region; Croatia, Slovenia, Serbia, and Bosnia and Herzegovina.

Expands the services in the region
Mazars is an international audit, tax, and advisory firm committed to helping its clients confidently build and grow their businesses. Present in over 95 countries and territories, they combine their skills and expertise with both a global perspective and local knowledge to provide clients with a broad range of services in audit, accounting, financial advisory, consulting, and sustainability.

– Together with VERIFY Agency we can now also provide companies in this region with an opportunity to go through the process of verification of their ISO26000 Self-Declaration and ensure more transparency of their sustainability work. Through this process they will also get guidance on their sustainability journey, Vali Marzalek adds.

Certified Impact Auditors
As a certified Impact Auditor, Vali will be auditing in Croatia and Adria region within this partnership. The verifications will be issued by VERIFY Agency of Sweden.

– Being a Certified Impact Auditor is a requirement to work as an auditor connected to VERIFY Agency. It means that the auditor has undertaken our certification program, in order for us to ensure quality of performance to the client, explains Eva Vati. As the demand for verification increases, the number of auditors will grow as well.

In line with international strategy
VERIFY Agency of Sweden is a subsidiary of VATI of Sweden, which has an ambition to grow internationally via hubs and partnerships around the world. The aim is to offer verification of companies’ sustainability work, training, and business consulting.

– Our partnership with Mazars in Croatia is in line with our international expansion strategy and our mission to unify people, business, and societies in a mutual effort to create a better world by doing good business, says Eva Vati, CEO and founder of both VATI of Sweden and VERIFY Agency of Sweden. Both parties are very excited about this newly established partnership and collaboration.

ABOUT VATI OF SWEDEN

Founded: 2019

VATI offers training within a sustainable business; Customized workshops and seminars; A wide range of consulting services where we effectively and agilely help companies integrate sustainability into their business strategy.

www.vatiofsweden.com

ABOUT VERIFY AGENCY OF SWEDEN

Founded: 2021

Was the first company in the world to be accredited to verify companies’ claims according to ISO17029

Our mission is to verify organisations’ sustainability work and thereby enhance their positive impact for a better world.

www.verifyagency.com

ABOUT MAZARS CROATIA

Founded: 2013

Mazars is a leading international audit, tax, and advisory firm, aspiring to build the economic foundations of a fair and prosperous world. Operating as a united partnership, Mazars works as one integrated team, leveraging and tailored services in audit and accounting, financial advisory, consulting, and sustainability.

Founded in Europe, Mazars is present in over 95 countries and territories, with more than 47,000 professionals – 30,000+ in our integrated partnership, and 17,000+ via the Mazars North America Alliance – dedicated to helping clients make the most of business opportunities and operate with confidence.

https://eng.mazars.hr/

Inlägget VERIFY Agency of Sweden partners up with Mazars in Croatia dök först upp på VATI of Sweden.

Barcelona will be VATI’s first hub outside of Sweden. Our partner on site, who will help us with the establishment, is Jessika Klingspor, a well-established entrepreneur who has been driving change in Barcelona since 2001. With her vast experience in various businesses, she had successfully linked Nordic clients and talent with the city’s vibrant ecosystem, which led to the creation of Nordics in Barcelona, a collaborative digital platform aimed at fostering disruptive co-creation between the Nordics and Barcelona.

An attractive destination for businesses
– Barcelona offers a strategic location, a thriving economy, access to talent, a supportive entrepreneurial ecosystem, a high quality of life, access to markets, and government support. These factors make Barcelona an attractive destination for businesses looking to expand and grow, and create a dynamic and exciting environment for innovation and entrepreneurship, says Jessika Klingspor.

This is something that the Swedish incubator Norrsken also has recognized and therefore has decided to invest SEK 200 million in Barcelona and established Norrsken Barcelona House, which will be Europe’s largest impact hub.

Help organisations get ready for new sustainability regulation
The new Eu directive CSRD, Corporate Sustainability Reporting Directive, which will come into force next year, entails more comprehensive requirements for companies’ sustainability reporting as well as verification of companies’ sustainability work.

-There are many companies that have not yet progressed far enough in their work to be verified, especially small- and medium-sized companies. We can help these companies to become verified according to EU directives and ensure a more sustainable business, says Eva Vati, CEO and founder of VATI of Sweden and VERIFY Agency.

An early adoption of a verifiable sustainability work means an easier transition once th EU directive is put into force. In addition, verification creates a strong competitive advantage and trust by increased transparency.

Vibrating hub with great potential
VATI has the ambition to grow internationally, and via hubs around the world offer training, business consulting, and verification of companies’ sustainable work. the verifications are issued by VERIFY Agency of Sweden, which is accredited by Sweden, Sweden’s national accreditation body, to verify companies’ claims, including sustainability reports. The verification is done according to the international sustainability standard ISO26000.

– We believe that Barcelona will grow to become one of Europe’s largest and most vibrant hubs for technology, start-up companies, and sustainability impact, which is why we choose to establish our first international hub here, says Eva.

– The city also offers a strong spotlight that stretches worldwide, above all it is the gateway to Latin America, adds Jessika.

Exciting collaboration for good business
Both parties are very much looking forward to the collaboration.

-It’s especially exciting to connect a company from my home region in the south of Sweden to Barcelona, which is a leader in sustainability and the first in the world to offer verification as an accredited organ. As someone who is passionate about inner development and sustainability, I am thrilled to see where this collaboration will take us, says Jessika.

– VATI’s mission is to unify people, businesses, and societies in a mutual effort to create a better world by doing good business, which this collaboration and establishment in Barcelona is a part of, concludes Eva.

ABOUT VATI OF SWEDEN
Founded: 2019
VATI offers training within a sustainable business; customized workshops and seminars; a wide range of consulting services where we effectively and agilely help companies integrate sustainability into their business strategy.

www.vatiofsweden.com

ABOUT VERIFY AGENCY OF SWEDEN
Founded: 2021
Was the first company in the world to be accredited to verify companies’ claims according to ISO17029
Our mission is to verify organisations’ sustainability work and thereby enhance their positive impact for a better world.

www.verifyagency.com

Inlägget Swedish Startup First In The World To Verify Company Claims – Establishes In Barcelona dök först upp på VATI of Sweden.