Translation of sustainability report

Does your company publish a sustainability report? If so, you are far from alone. According to the latest edition of KPMG's study ”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 ESG issues (”Environmental, Social and Governance”). And among the N100, i.e. the 100 largest companies in each of the 58 countries analysed in the study, 79 per cent state that they report sustainability and ESG data, a figure that rises to as much as 98 per cent when it comes to Sweden.

But why should companies focus on sustainability reporting? What benefits does such a reporting strategy provide? And might it be relevant with sustainability report to other languages? Here you will hopefully find the answers to these questions and a few more.

The climate – one of the most important issues of our time

It has surely escaped hardly anyone that the environment, climate and sustainability have become some of the most important issues of our time. Despite earth-shattering world events such as ongoing wars, refugee crises and pandemics, we see that channels such as television, newspapers and social media are filled more or less daily with extensive reports on environmental and sustainability issues. And with this, we all – including businesses, almost regardless of industry – have become much more aware of what is at stake and the responsibility we bear. 

Developments within the environmental and sustainability field mean that an increasing number of companies have begun to realise the importance and benefits of publishing a sustainability report, usually on an annual basis but also continuously on their website and via other channels. But why should companies consider and invest in this type of reporting? The reasons can be many, but here are a few.

Good sustainability a competitive advantage for businesses

As we as consumers become increasingly aware of the importance of sustainability for the future of our planet and our children and grandchildren, businesses that can demonstrate a good level of performance in this area benefit. What goes through your mind, for example, when you are doing your weekly shop and are met in the supermarket by options that are organic and meet environmental requirements? Or when you are buying new clothes for the upcoming season (if you even buy ”new” anymore)?

Our everyday lives are filled with important choices that must be made for us as individuals to do our bit and together make a significant difference. And for businesses, this represents a major opportunity. Being able to show that products are manufactured in a responsible and sustainable way, using recyclable materials and climate-smart methods, is today key to increased sales and thus increased profitability and greater market share. And in addition to ongoing marketing, a company's formal reporting is an important arena where the business's sustainability and environment-related strategies and performance can be highlighted to customers and other stakeholders.

A rewarding strategy – but what are the current requirements?

Recognising the benefits of reporting on sustainability work and climate-smart methods is one thing. But is it also a requirement for companies to report in this area? In Sweden, regular financial reporting in the form of interim reports and annual accounts is regulated by the requirements found in, for example, the Annual Accounts Act and various standards, regulatory frameworks and guidelines. But what is the actual situation when it comes to sustainability? And do these requirements also create a need for the translation of sustainability reports into other languages?

Popular already in the 90s – and a lot has happened since then

Sustainability reporting started to become popular as early as the 90s, as environmental concerns became increasingly relevant in many parts of society. A lot has happened within the field since then, and the development continues to this day. Below, you can see 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 directive Corporate Sustainability Reporting Directive (CSRD) enters into force and replaces the existing NFRD directive

Do the new rules apply to our company?

According to the new rules on sustainability reporting which came into force on 1 July 2024, a sustainability report must be provided by large companies and small and medium-sized limited liability companies listed on a regulated market within the European Economic Area (EEA). The sustainability report 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, for example, the following websites:

Sustainability Report – Companies Registration Office

Reporting – Finansinspektionen

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

ESRS – what do the new standards mean?

ESRS (”European Sustainability Reporting Standards”) 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 will need to be included in the sustainability report. The goal is to increase transparency and comparability regarding how companies impact 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, consideration must also be given to the implications of the new rules regarding the translation of the sustainability report.

Do you keep 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 sustainability declaration as an equivalent to sustainability statement.

Below is a selection of concepts and terms that have been subject to amendment in the revised translation of ESRS.

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

The sustainability report has been produced – is it needed in more languages?

Once you have invested a great deal of time and effort into producing a high-quality sustainability report – for many good reasons – it can be both logical and highly advantageous to consider whether the report should be translated into other languages. Here at Språkbolaget, we naturally want to take the opportunity to promote our services should your sustainability report need translating into another language. We work with translators who specialise in this field and know precisely how a report in Swedish should be correctly and optimally 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 that exist, as well as other related topics. For example, Agenda 2030 and the Sustainable Development Goals and – where applicable – the Taxonomy Regulation. In addition to core translation expertise, our translators also possess this kind of subject-matter knowledge and extensive experience in sustainability-related assignments.

By publishing your sustainability report also in English and other languages, you ensure that this important information reaches 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.