Sustainability reporting – what is it?
Sustainability reporting is the practice of disclosing non-financial information about a company’s impact on the environment, society, and governance (ESG). Companies publish these reports to communicate their sustainability goals, progress in achieving them, risks, and initiatives such as reducing greenhouse gas emissions, energy consumption, and employee practices. In the context of the food industry, reporting covers the carbon footprint in the supply chain, sustainable sources of raw materials, and waste management.
FAQ
What are CSRD and ESRS in sustainability reporting?
CSRD (Corporate Sustainability Reporting Directive) is an EU directive that requires large companies to report on sustainability, replacing the previous NFRD and expanding the scope of entities. ESRS (European Sustainability Reporting Standards) are sets of standards that define what and how to report – they include 12 guidelines, including general (ESRS 1-2) and thematic for ESG, with an emphasis on double materiality (company impact and impact on the company).
Why is sustainability reporting important in the food industry?
In the food sector, reporting helps manage risks such as climate change, resource shortages, and regulatory pressure, building investor and customer confidence through transparency on GHG emissions, water consumption, and ethical sourcing. Food companies, such as those in the cocoa or organic product supply chain, use blockchain to track sustainable practices and publish annual ESG reports.
What standards should be used for sustainability reporting?
Popular frameworks include GRI (Global Reporting Initiative), SASB, and ESRS for EU companies; reports should comply with regulations such as CSRD and avoid greenwashing through complete, consistent data. In the EU, large companies must report digitally, with an emphasis on climate (ESRS E1) and other material topics.
