A Comparative Analysis of Nordic companies' Sustainability Reporting: Aligning with the EU's Corporate Sustainability Reporting Directive

Abstract

This thesis examines sustainability reporting practices by two leading Nordic telecommunications companies, Elisa Oyj and Telia Ab, with a focus on their alignment with the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). As CSRD becomes mandatory for large EU companies from the 2024 financial year onward, this research explores how these firms have adapted their reporting to comply with the directive, particularly within their reporting standards and disclosure of environmental, social and governance (ESG) topics.

Using a qualitative content analysis approach, the thesis examines the companies' 2023 and 2024 sustainability reports to assess the evolution of their reporting frameworks, the integration of double materiality assessments, and the depth of ESG disclosure. A coding framework is applied to classify the reports based on themes aligned with the criteria and requirement of the CSRD.

The findings indicate that both companies made significant strides in aligning with CSRD requirements in 2024. Both Elisa and Telia have made a significant transition from diverse, voluntary reporting frameworks towards a more standardized approach anchored in the ESRS. A key aspect of this transition is the adoption of the double materiality principle, which has led both companies to broaden their focus from traditional stakeholder-oriented materiality assessments to more comprehensive evaluations encompassing both the impact of their operations on the environment and society, and the impact of sustainability matters on their business. This has resulted in more granular and comprehensive ESG reporting.

While the CSRD has enhanced transparency, accountability, and comparability, and fostered a degree of standardization in reporting, both Elisa and Telia continue to exhibit distinct sustainability strategies. These differences reflect their unique organizational values, market positions, and stakeholder priorities. The study concludes that the CSRD has successfully promoted a more rigorous and structured approach to sustainability reporting, without eliminating the potential for companies to differentiate themselves through their specific sustainability initiatives.