Insights on impact in the financial sector, Double Materiality Assessments, Life Cycle Assessments and the EU Deforestation Regulation

We're excited to share with you another edition of our monthly sustainability insights. In this issue, we introduce our impact assessment survey findings and explore the original purpose of Double Materiality Assessments. We also look into the potential of Life Cycle Assessments (LCA) to drive business transformation, insights from our latest webinar and we breakdown the EU’s Deforestation Regulation.

Approaching impact is proving to be a challenge for financial institutions. Last month, we launched a survey to uncover the main issues Nordic and European firms encounter when working on impact in the financial sector.

?Here are 3 key findings we unveiled on impact investing:

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1. Regulation won’t get you there | Don’t be fooled into thinking SFDR Article 8 or 9, CSRD or EU taxonomy will get you to the point of impact investing. You need to go further if you want to claim impact. These frameworks provide a solid foundation, but true impact investment requires clear and communicated intention.
2. Choose your metrics wisely | As an investor, define what impact means to you and be as specific as you can on the outcome you want to achieve, before selecting KPIs and metrics to collect data and report on.
3. Be specific at sector and/or topic level?| You will run into hot water if you are vague with your impact investment objective. Be as specific (and scientific) as possible and ensure you have the data to evidence real-world improvement

We share our learnings and reflections with you to make this journey easier to navigate for companies in the long run.

? You can access the full white paper here →

Leverage your double materiality assessment to create strategic value

Companies are already navigating the first wave of requirements as the EU rolls out the new corporate sustainability reporting legislation (CSRD/ESRS). Many companies are merely focusing on compliance and overlook the purpose of the Double Materiality Assessment - to inform and strengthen corporate strategy.

Here are 3 key findings we unveiled on why and how to do Double Materiality:

1. Strategic integration:?Link your business model with sustainability initiatives as mandated by ESRS, detailing impacts and opportunities across your value chain.
2. From compliance to value:?Use the DMA insights strategically to mitigate impacts, identify opportunities, and ensure long-term resilience.
3. We encourage companies to use the DMA not just for compliance but as a cornerstone for innovative, sustainable business practices that drive long-term value.

? You can read the full insight here →

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Unlocking the full potential of Life Cycle Assessments

With growing regulatory pressure, it's crucial for companies to make the best out of the available tools. While many already use LCAs to back-up a company's green claims, few realise their full potential as strategic tools.

? Discover more on LCA's in our full article here →

Webinar | How-to guide to ESRS E1 implementation

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On May 22nd, we are hosted a new webinar delving into the new requirements of the European Sustainability Reporting Standard for Climate Change (ESRS E1).

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Detailed overview of ESRS E1:?Learn what the standards entail and all the disclosures required.

Preparation strategies:?Get actionable tips on ESRS E1 implementation.

The 5-step ladder: Five we will propose a waysteps to tackle and prepare for the reporting on burden of ESRS E1

Practical advice:?Our experts will share insights to help you navigate the complexities of compliance.

? ?You can watch the webinar here →

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A comprehensive breakdown of the EU’s Deforestation Regulation

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The EU's Deforestation Regulation (EUDR) requires businesses handling high deforestation-risk products to submit due diligence reports for enhanced transparency. The EUDR is part of a broader EU sustainability initiative, including the Corporate Sustainability Due Diligence Directive (CSDDD), Forced Labour Ban Regulation, and Critical Raw Materials Act.?

? ?Read the article to find out:

1. Does your company need to act?
2. What is a due diligence report?
3. Which are the next steps

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Thank you for reading another edition of our newsletter. If you think a fellow sustainability nerd would need to hear about the latest sustainability news, forward this newsletter to them.

We want this newsletter to be a two-way conversation. Share your thoughts and questions with us on?LinkedIn ?and join our?virtual events .

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Kind regards,

the Nordic Sustainability team?