Translating sustainability reports

Does your company publish sustainability reports? If so, you’re far from alone. According to the latest edition of KPMG's Survey of Sustainability Reporting, 96 per cent of the world's 250 largest companies – known as the G250 – provide some form of reporting on sustainability or Environmental, Social and Governance (ESG) issues. And among the N100, i.e. the 100 largest companies in each of the 58 countries analysed in the survey, 79 per cent say they report sustainability and ESG data, a proportion that rises to no less than 98 per cent in the case of Sweden.

But why should companies focus on sustainability reporting, what benefits does such a strategy provide, and should we be translating sustainability reports into other languages? We hope to provide answers to these questions, and a few more besides, in this article.

Climate – one of the most important issues of our time

It cannot have escaped anyone’s attention that the environment, climate and sustainability have become some of the most important issues of our time. Despite earth-shattering events such as ongoing wars, refugee crises and pandemics, we see that channels and platforms such as television, newspapers and social media are filled almost everyday with extensive reporting on environmental and sustainability issues. And with that, we have all – including companies, almost regardless of the industry – become much more aware of what is at stake and the responsibility we bear. 

Developments in the environmental and sustainability field have led an increasing number of companies to realise the importance and benefits of publishing sustainability reports, not only on an annual basis but also continuously on their website and through other channels. But why should companies consider investing in this type of reporting? We describe a few of the many reasons below.

Sustainability – a competitive advantage

As we, in our capacity as consumers, grow ever more aware of how important sustainability is for the future of our planet, and our children and grandchildren, the companies that can demonstrate good performance in this area benefit. For example, what goes through your mind when you’re doing your weekly shopping and find the supermarket shelves packed with organic, eco-friendly options? Or when you’re buying new clothes for the upcoming season (if you even buy ”new” anymore)?

Our everyday lives are filled with the important choices we each must make if we’re all to do our bit and make a real difference together. And for companies, it represents a major opportunity; today, the ability to show that products are manufactured responsibly and sustainably using recyclable materials and climate-smart methods, is key to increasing sales, and thus profitability and market share. And in addition to its ongoing marketing activities, a company's formal reporting is an important arena where its sustainability and environment-related strategies and performance can be showcased for customers and other stakeholders.

A winning strategy – but what are the rules?

Recognising the benefits of reporting on sustainability and climate-smart methods is one thing, but are companies actually obliged to report in this area? In Sweden, regular financial reporting in the form of quarterly and annual reports is regulated by requirements found in e.g. the Annual Accounts Act and various standards, regulatory frameworks and guidelines. But what’s the deal in the case of sustainability? And do these requirements also mean we need to translate sustainability reports into other languages?

Already popular in the 90s – and much has happened since then

Sustainability reporting began growing in popularity back in the 90s, as environmental concerns became increasingly relevant in many parts of society. A lot has happened in the field since then, and developments continue to this day. Listed below are some of the major events that have influenced sustainability reporting over the past 30 years.

1992 – Adoption of the United Nations Framework Convention on Climate Change (UNFCCC)

1997 – Adoption of the Kyoto Protocol and development of the Global Reporting Initiative (GRI)

2010 – Publication of ISO 26000, a guidance standard in social responsibility and corporate social responsibility

2014 – Introduction of the EU Non-Financial Reporting Directive (NFRD)

2015 – Adoption of the UN's 17 Sustainable Development Goals

2015 – Establishment of the Task Force on Climate-related Financial Disclosures (TCFD)

2024 – New EU Corporate Sustainability Reporting Directive (CSRD) enters into force replacing the NFRD

Do the new rules apply to our company?

According to the new rules on sustainability reporting which came into force on 1 July 2024, large companies and small and medium-sized limited liability companies listed on a regulated market inside the European Economic Area (EEA) must submit sustainability reports. These reports must be included in the annual report as a separate section of the directors' report.

More comprehensive information on the new sustainability reporting requirements is available on the following websites:

Hållbarhetsrapport – Swedish Companies Registration Office

Sustainability reporting – Swedish Financial Supervisory Authority

However, companies that are not subject to the mandatory reporting requirements should also at least consider the value of investing in sustainability reporting. As already mentioned, it can provide an important advantage in relation to the market and the company's customers. It can also be a way of presenting the company as a responsible employer and thereby attracting the best talent when recruiting. And these days, many investors value sustainability very highly when formulating their investment strategies and making investment decisions.

ESRS – what do the new standards mean?

The European Sustainability Reporting Standards (ESRS) is a new common reporting framework for sustainability reporting. The new standards mean that significantly more information linked to environmental, social, and governance (ESG) matters must be included in the sustainability report. The goal is to increase transparency and comparability regarding the impact companies have on people and the environment, as well as how operations are affected by sustainability issues. Furthermore, if a company conducts operations that require reporting in multiple languages, a position should also be taken on the implications of the new rules regarding the translation of the sustainability report.

Are you keeping track of all the new terms?

The Swedish translation of ESRS received criticism from certain quarters and the EU has now come out with a revised translation of ESRS in which the majority of terms and expressions have been given new translations while others have been retained, including the debated concept hållbarhetsförklaring as corresponding to sustainability statement.

Below is a selection of concepts and terms that were amended in the revised translation of ESRS.

Naturally, it’s important not only to keep track of the new terms that appear in the revised Swedish translation of ESRS, but also the corresponding terms when translating sustainability reports from Swedish into English and other languages. Thus, it’s important to engage a translation partner with the right expertise in this area.

So your sustainability report is ready – need it in more languages?

Now that you’ve invested so much time and effort into producing a top-quality sustainability report – for a wealth of good reasons – it’s both logical and highly advantageous to consider whether to translate the report into other languages. Naturally, Språkbolaget would like to take this opportunity to promote our services should your sustainability report need translation into another language. We work with translators who specialise in this field and know precisely how a Swedish report should be correctly translated into English and other languages. We also have translators who translate from English into Swedish. This requires knowledge of the various regulations and standards, as well as other related topics. For example, Agenda 2030 and the Sustainable Development Goals and, where applicable, the Taxonomy Regulation. In addition to their translation skills, our translators also possess knowledge of this kind of subject matter and extensive experience in sustainability-related assignments.

By publishing your sustainability report in English and other languages, you enable its important information to reach your current and future customers, suppliers, investors and other stakeholders in your existing and intended markets.

So do not hesitate to Contact us to discuss your specific needs regarding sustainability report translation.