From GRI to CSRD: Early Adoption in Sustainability Reporting
Diana Lashgari has charted an impressive career path in the field of sustainability, transitioning from international relations and political science to her current role as Head of Sustainability Reporting and Project Manager for CSRD Implementation at the Swedish Export Credit Corporation. With a strong foundation in environmental management and sustainability consulting, Diana has navigated the complexities of sustainability reporting, data management, and strategic development in various industries. In this interview, she shares her insights and advice for sustainability managers
Addressing Data Challenges in Sustainability Reporting
Q: As regulations become a major focus for companies, there are both opportunities and challenges in addressing them. What are the key challenges you encounter with these new regulations, both in terms of understanding them and in implementing and managing these initiatives?
Diana: “The different types of reports have made financial institutions realize that we need more data. Data is a significant issue. We need both real data not just from direct sources (consumers) but also through proxies from other companies. This data needs to be much better and cover more areas. Currently, the most developed area for data is climate-related, particularly with scope 1, 2, and 3 emissions. For instance, in scope 3, section 15, we know the specific information required for reporting on our financing. We need similar detailed data for other areas as well, but that isn't available yet, making it challenging to determine relevant disclosures. It is crucial to have sector-specific guidelines to ensure relevance and accuracy in our reporting.”
Diana's emphasis on the need for comprehensive and reliable data aligns with current research. According to McKinsey & Company (2022), financial institutions are increasingly aware of the critical role that high-quality data plays in sustainability reporting. The most developed data is climate-related, particularly scope 1, 2, and 3 emissions. However, the lack of equally detailed data in other areas poses challenges for determining relevant disclosures. This highlights the importance of developing sector-specific guidelines to ensure the relevance and accuracy of sustainability reporting. By addressing these data challenges, organizations can enhance their sustainability reporting and drive meaningful progress towards their sustainability goals.
The Importance of Collaboration in Sustainability Efforts
Q: As you mentioned the data challenge, how can organizations and the broader market overcome these challenges posed by sustainability regulations?
Diana: "So one thing is that collaboration is very important in the sustainability field. We need to see other financial institutions as peers and not as competition, because then we can collectively put demands on customers and suppliers for the data we need.
By working together, we can identify what we actually need and collaborate to become a stronger collective voice. It’s crucial to be part of different networks and groups because this field is very new and nobody has done this before. We aim to achieve significant goals, which cannot be done alone. Collaboration with others is essential.”
Current research strongly supports Diana's focus on collaboration. A study published in the Journal of Cleaner Production (2021) indicates that collaborative networks play a vital role in enhancing corporate sustainability efforts. By enabling knowledge exchange and collective action, these networks are crucial in fields like sustainability, where cooperation can help organizations overcome challenges and achieve ambitious goals that are difficult to reach independently. This collective approach not only amplifies individual efforts but also drives systemic change in the industry, ensuring that ambitious sustainability goals are achievable through shared knowledge and resources.
Advice for Starting the Sustainability Reporting Journey
Q: What advice would you give to organizations starting their sustainability reporting journey?
Diana: "One piece of advice for organizations starting their sustainability reporting journey is to begin as soon as possible. Because I realized that since we have been doing sustainability reporting for a long time in which we already have a foundation, our transitioning from established frameworks like GRI to new ones like CSRD has been more manageable. If we didn't have that, the gap would be much wider.
So, start as soon as possible by gathering existing data and conducting a double materiality analysis, even if it's a smaller version initially. Begin by identifying your most significant impacts, risks, and opportunities. Organize your company around these key areas, focusing on the biggest ones first. Start by doing a little and build up gradually, rather than trying to do everything at once, which can be overwhelming due to the sheer amount of work involved.”
The significance of early adoption and proactive data management is evident in Diana’s advice. With reference to a study by Deloitte (2022), it confirms that early adoption and proactive data management significantly ease the transition to new reporting frameworks. Organizations that begin these efforts early are better positioned to meet regulatory deadlines and enhance their overall sustainability performance. Utilizing automated sustainability reporting tools can further support this transition by streamlining data collection and analysis.
Conclusion
Diana Lashgari's insights provide valuable guidance for sustainability managers navigating the complexities of modern sustainability reporting. Her emphasis on early adoption, collaboration, and strategic planning underscores the importance of proactive and coordinated efforts in achieving sustainable business solutions. By leveraging intelligent sustainability software and other advanced tools, organizations can enhance their reporting capabilities and drive meaningful environmental impact.
The views and opinions expressed in this blog are solely those of the author and do not reflect the official policy or position of any company.
