Ljubljana, 13 December 2023 - There is still a long way to go to reach the EU's target of zero net emissions by 2050, and the call for sustainability reporting is becoming an inevitable requirement for many companies, according to a today's Tea with Reason entitled "Navigating Sustainability Reporting" organised by the British-Slovenian Chamber of Commerce in Ljubljana. Representatives of Slovenian companies heard expert advice from PwC Slovenia, which provided insights into key aspects of the Sustainability Reporting Directive (CSRD), including the key reporting steps, the basic guidelines of this new regulatory framework and a glimpse of the many opportunities that reporting may bring.

"There is still a long way to go to achieve the EU's net zero emissions target by 2050 and it requires a collective and effective effort from individuals, governments and businesses. The clock is ticking and the call for sustainability reporting is becoming an inevitable obligation for many companies," said Barbara Uranjek, CEO of the British-Slovenian Chamber of Commerce in her opening remarks. She also urged companies "to consider sustainability reporting as an opportunity to grow their own business, not just as a regulatory burden."

"Many small companies mistakenly think that their greenhouse gas emissions are low and that sustainability is not their concern," said Dr Jure Stojan, Partner and Director of Research and Development at ISR, during a presentation on the readiness of small and medium-sized enterprises (SMEs) for sustainability reporting. On whether SMEs would be more motivated by the carrot or the stick to act and report sustainably, he highlighted the role of the latter, which is already manifesting itself in the form of natural disasters such as the August floods that affected Slovenia and many companies.

»The CSRD is a major legislative change, triggering the largest sustainability transformation for companies across the EU market. It will bring non-financial reporting on par with financial reporting, and will require a change in sustainability governance, strategy, impact, risk and opportunity management, and the setting of sustainability metrics and targets,« underscored Erato Panayiotou, Manager of Consulting at PwC Slovenia. She informed the audience on who and when sustainability reporting will apply and what concrete steps companies will have to follow in practice. The CSRD, according to Panayiotou, is more than just a reporting requirement, it goes beyond the need for compliance.

The fact that the CSRD will bring a large amount of quantitative and qualitative data in the context of sustainability reporting was highlighted by Živa Jezernik, Chief Sustainability Officer and Chief Risk Officer, Triglav Skladi, in a panel discussion on reporting experiences with business representatives. She added: "We expect that this data will now be more accessible and comparable, as it will follow the same standards, and will also be of higher quality, as it will be subject to audit." Alenka Recelj Mercina, Head of Sustainability at NLB, stressed that management and supervisory bodies should also take responsibility: "They have an increasing role to play in measuring the risks and opportunities arising from sustainability. This is no longer just about reporting, but about actively risk and performance management."

"For many, reporting will be sudden and new," said Zooullis Mina, Managing Director at Pivovarna Laško Union. "Small organisations will face more difficulties in integrating sustainability programmes into their strategies and will need support to do so. It is important that we support them in this and not just require them to report." On the experience of integrating sustainability into the strategy of Pivovarna Laško Union, he added: "The key is to steer the management of the company towards long-term cash flow generation and to invest in objectives that promote sustainability. That is why we have developed a sustainability programme that is an indispensable part of the overall corporate strategy."

Photos from the event are available here.