Charting the course for standardised sustainability

Deloitte's first CSRD Benchmark for Financial Institutions in the Nordics offers a comprehensive analysis of how 25 leading banks and insurance companies in the Nordics are adapting to and implementing the Corporate Sustainability Reporting Directive. This study evaluates their FY2024 sustainability statements, focusing on approaches, industry practices, disclosure granularity, and the initial impact of this regulation. The benchmark aims to provide actionable insights, helping organisations refine their sustainability efforts and enhance the quality of their reporting in line with evolving stakeholder and regulatory expectations.

Sustainability efforts in the Nordic Finance Industry: Progress and priorities

Nordic financial institutions are demonstrating a clear commitment to integrating sustainability, with an average of 36% of annual reports now dedicated to sustainability disclosures . The approach to CSRD is marked by:

• Structured reporting: Universal adoption of ESRS and ESG principles for structuring reports.
• Materiality-driven focus: Institutions are diligently conducting Double Materiality Assessments (DMAs) to identify key impacts, risks, and opportunities (IROs). On average, 5 ESRS topics are assessed as material.
• Environmental emphasis: Strong focus on Climate Change (E1), with growing attention to Biodiversity (E4) and Resource Use (E5).
• Social and Governance foundations: Robust reporting on Own Workforce (S1) and Consumers and End-users (S4), alongside core Business Conduct (G1) principles.
• Challenges in Data and Interpretation: Ensuring high-quality data and navigating the nuances of new regulatory requirements are common hurdles. 
  

Looking ahead

The CSRD is driving a fundamental shift towards more comprehensive and comparable sustainability reporting. Continuous improvement, investment in data and technology, and strategic integration of ESG will be vital for Nordic financial institutions to meet future expectations and leverage sustainability as a driver of value.