OPINION
The sustainability transformation creates growing skills requirements for finance professionals
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esponsible business, sustainable development and the shift towards a carbon-neutral society are challenging companies to renew their strategy, internal measurement and external reporting. It is no longer enough to discuss sustainability issues only internally – external stakeholders also expect open and transparent reporting. In addition to owners and employees, companies’ ESG (environmental, social, governance) issues are of growing interest to customers, business partners, investors, financiers and ESG rating providers, among others. And the regulators will give a final boost to reporting in companies that are otherwise reluctant to publish their sustainability data.
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Increasing reporting requirements
A major shift in financial reporting is expected when, as part of the Sustainable Finance Action Plan, the European Commission proposes to make Corporate Sustainability Reporting Directive (CSRD) and its independent assurance mandatory for listed companies and other companies with more than 250 employees from 2023. Sustainability information should be published in the annual reports alongside the income statement and balance sheet. On top of that, it would have to be approved by the Board. Sustainability reporting has become a serious issue. The EU’s proposed sustainability reporting requirement would apply to 600-800 Finnish companies.
