Sustainability reporting is a key tool for demonstrating accountability, creating transparency, and strengthening relationships with stakeholders such as customers, investors, and employees. But with new regulations and reporting standards being introduced, such as ESRS and VSME, and as the thresholds for mandatory reporting are adjusted, many organizations are beginning to ask themselves: How much information and data is enough? How do we find the right level for our reporting? What is considered best practice?
Many companies look to one another for guidance—but the truth is that no one really knows yet. The requirements are new, interpretations are evolving, and that’s exactly why it’s more important than ever to find the right reporting level. Finding the right level means creating a report that is relevant, credible, and useful, both for your own operations and for the outside world.
With long experience supporting companies in sustainability reporting and a strong understanding of our clients’ challenges, we at 2050 know how crucial it is to find the right balance between compliance, value, and ambition. In this 2050 Highlights, we provide concrete advice on how to find a level that works in practice.
1. Navigate the New Landscape
Start by gaining a clear overview. Have you updated your interpretation in light of Omnibus 1 and upcoming reporting requirements? Are you, for example, affected by the transitional provisions for sustainability reporting following the implementation of the so-called “stop the clock” directive in Swedish law—which would mean reporting under the previous provisions of the Annual Accounts Act (ÅRL)?
Even for voluntary sustainability reporting, many companies choose to be inspired by recognized frameworks to create structure, future-proof their reporting, and facilitate comparability. It can therefore be helpful to familiarize yourself with frameworks such as ESRS (reporting standard for large companies reporting under CSRD) and VSME (a voluntary reporting standard developed for small and medium-sized enterprises) and evaluate whether one of these could serve as a useful starting point.
It may also be relevant to look at sector-specific frameworks, for instance those issued by the Global Reporting Initiative (GRI), or to explore other industry practices that might apply to your business.
Understanding your starting point and orienting yourself within the various frameworks and standards will give you a solid foundation for planning your upcoming report.
2. Identify the target audience and the purpose of the report
Once you’ve familiarized yourself with the relevant regulations and frameworks, the next step is to understand the purpose of your sustainability report. Why are you producing it—and for whom?
Understanding the reason behind the report and who the intended audience is will help you prioritize the right content and level of detail. Different stakeholders have different needs, and a report can serve multiple purposes—from meeting formal requirements to building trust, strengthening the brand, and driving internal improvement.
At this stage, it’s often wise to pause and spend some extra time on dialogue. By engaging with your key stakeholders, you’ll gain a clearer picture of which issues are most relevant—and how your reporting can create real value.
A selection of questions to ask yourself:
- Who are our key stakeholders (customers, owners, employees, financiers)?
- What expectations might they have, and how do we meet them?
- What do we want to achieve with our sustainability work, and how can reporting show that we’re making a difference?
- How might these expectations evolve over time?
- How will the report be used—internally as a management tool, externally for transparency, or both?
- What decisions or insights do we want it to support?
3. Define the Scope and Content of the Report
Once purpose and audience are clear, the next step is to decide what should actually be included in the report—and what can be left out. Setting clear boundaries is about focusing on what’s most relevant to the business while keeping ambition levels realistic given available resources.
A common mistake is trying to cover “everything at once”. A well-balanced report develops gradually and reflects the company’s maturity, structure, and capacity. By narrowing the focus, the report becomes both more relevant and more manageable.
A good starting point is the company’s (double) materiality assessment, where impacts, risks, and opportunities are identified and prioritized. Industry-specific guidance can also provide valuable support—such as sector standards or established best practices in your field. When data or structure is lacking, existing standards like ESRS and VSME can be used to bring clarity and structure. These can also support indicator selection and data presentation to strengthen comparability—over time and across companies.
At 2050, we often work with clients to develop an overarching structure and framework for reporting. This means starting with the materiality assessment, identifying the most significant issues in terms of impact, risk, and opportunity, and linking them to concrete indicators, goals, and narratives. In this way, reporting becomes not just a compliance product—but a tool for management, learning, and development.
4. Collect Data – Both Qualitative and Quantitative
Once the framework is set, the next step is to ensure you have the right data foundation. Credible sustainability reporting relies on robust, reliable data that accurately reflects the organization’s impact and progress.
Effective reporting often requires the involvement of multiple departments (e.g., finance, HR, environment, procurement, and communications). This fosters alignment, accountability, and shared understanding of sustainability efforts.
A common mistake is to treat data collection as a one-off task before publication. In reality, it should be viewed as an ongoing process that evolves over time—where quality assurance, documentation, and ownership are as important as the data itself. High-quality data is traceable, comparable, and consistent over time.
At 2050, we often use a three-step model to create a structured and reliable process:
- Mapping and Baseline Analysis
We identify existing data, its sources, and any gaps. Roles, responsibilities, and ownership within the organization are clarified. - Procedures and Quality Assurance
We establish a systematic approach to data collection—with clear processes, controls, and routines to ensure quality and traceability. The focus is on creating a workflow that functions in practice, year after year. - Analysis and Alignment
Data is put into context. We collaborate across the organization to interpret results, build shared understanding, and ensure that the report accurately reflects reality.
5. Write, Review, and Communicate
A good sustainability report is about more than numbers—it tells the story of your efforts, goals, and progress. Qualitative information, such as descriptions of governance, processes, targets, and improvement work, provides context and makes the reporting comprehensible and credible. It’s the combination of quantitative results and qualitative storytelling that gives the full picture of your sustainability work.
As a final step, consider where your sustainability information will have the greatest impact. It may make sense to highlight certain information outside the report itself—for example, on your website, in the front section of the annual report, in investor dialogues, or through internal communications. This way, you reach your various audiences with the right message in the right place.
Our advice:
Sustainability reporting takes time. By starting the work this autumn, you’ll create the right conditions for a meaningful report and a more structured data collection process.
Want to know how to get started—or find the right level for your company?
Feel free to reach out to our experts!
Lova Rosenqvist
Senior Consultant at 2050
Ronja Widing
Consultant på 2050
This article is part of 2050 Highlights, a series where we explore pressing sustainability and business topics. Want to learn more about how your company can navigate the evolving regulatory landscape? Contact us at 2050!