13 years ago, I joined a leading multinational corporation in the Nordic region during a time when the concept of sustainability was getting more and more onto the companies’ agenda. At that point, sustainability was often used more as a promotional tactic rather than a genuine commitment by many companies. However, the company I became a part of stood out for its serious dedication to sustainable practices. This article explores my experiences from that period and discusses the impact of the European Union’s new regulations on corporate sustainability efforts.
In the early days as an intern and later data analyst, sustainability was an emerging idea, and our company was at the forefront. We were proactive in publishing yearly sustainability reports and appointed key individuals to manage these initiatives. It was in this environment that I became familiar with the concepts of scope 1, 2, and 3 emissions. I was assigned to create green products to offer to our existing customers. My role also involved collecting and reporting sustainable related data, which allowed me to understand the environmental effects of activities like diesel combustion or electricity consumption. I learned about how much CO2 emissions comes from burning a litter of diesel, gasoline, or using a kilowatt-hour of electricity.
Our company initiated a variety of projects to reduce the carbon footprint, such as replacing traditional light bulbs with energy-efficient ones across our properties, introducing paperless billing in our finance department, and switching from diesel to electric-powered forklifts. We also encouraged our operations to focus on waste separation, marking a significant move towards a more sustainable business model.
One personal challenge I faced was consolidating 50 pages of PDF data on company car fuel usage. This task highlighted the importance and time-saving potential of administrative work with automation. I researched and discovered a semi-automated method for transferring and cleaning data from PDFs to Excel, which expedited and improved the accuracy of the process (13 years ago this was a wow moment, I remember how the Director of Operations Excellence was impressed by this).
Fast forward to 13 years later, the corporate sustainability landscape has transformed remarkably. The EU has enacted the Corporate Sustainability Reporting Directive (CSRD), which requires various companies to report on sustainability. The implementation timeline is as follows:
- Starting 1 January 2024 for large public-interest companies (over 500 employees) already covered by the Non-Financial Reporting Directive (NFRD), with reports due in 2025;
- Beginning 1 January 2025 for large companies not currently under the NFRD (with more than 250 employees and/or €40 million in turnover and/or €20 million in total assets), with reports due in 2026;
- From 1 January 2026 for listed SMEs and other entities, with an option for SMEs to defer until 2028, and reports due in 2027.
Moreover, non-EU companies with an EU turnover exceeding €150 million will also need to comply.
While these regulations may increase administrative burdens, they are essential for a sustainable future and must be embraced as a responsibility, not a choice. Fortunately, advancements in technology and tools have made it easier to automate data collection, calculation, and reporting processes. There are many Robotic process Automation tools out there that can help to facilitate this work.
At PowerMetricsPro we use Microsoft Power Automate software and its other Power tools, we have deep knowledge in environmental reporting and specialize in automation technology. Recognizing that not all companies have these specific skills, our team is equipped to help. We help in establishing and automating dashboards for scope 1, 2, and 3 emissions, covering everything from data collection to emissions calculation and reporting. Navigating the complexities of sustainability reporting is manageable and can be efficient with the appropriate tools and expertise.
p.s. P.S. The image featured in this article is identical to the one I utilized in my presentation 13 years ago, during the development of the GoGreen product presentations. At that time, it was a glimpse into a visionary future; today, it stands as a testament to a now-proven reality.
Author: Ion Ilovan, 08 Dec 2023