Ovako prepares for CSRD by enhancing ESG reporting transparency
Steel company Ovako is taking proactive steps to meet the requirements of the EU's Corporate Sustainability Reporting Directive (CSRD). The company is working to improve the transparency and quality of its ESG reporting ahead of the directive's formal implementation.
Steel company Ovako has initiated measures to prepare for the EU's Corporate Sustainability Reporting Directive (CSRD), which mandates companies to report extensively on their environmental, social, and governance (ESG) impacts. Although Ovako's formal reporting obligation is likely to commence around 2028, the company has adopted a proactive approach.
Ovako's sustainability report for 2024 aims to align with CSRD principles, even without full compliance at this stage. This "CSRD-inspired" reporting facilitates process development and preparation for the upcoming 2026 deadline, which may be eased by the "Omnibus" proposal. The company emphasizes its commitment to transparency and third-party verification of its reports.
CSRD requires the collection and reporting of approximately 1,100 data points, necessitating meticulous planning. Ovako is utilizing a double materiality analysis (DMA) to identify reportable topics and aligning its reporting with the European Sustainability Reporting Standards (ESRS). The company has established a dedicated governance structure, including a sustainability steering group and a project group, to ensure comprehensive and systematic preparation.
Based on the DMA conducted in 2023, Ovako has mapped its existing reporting against ESRS standards and identified gaps. While the company has a long history of sustainability reporting, full CSRD compliance requires additional effort. Ovako views early preparation as a competitive advantage, enabling benchmarking against other leading European companies and addressing challenges before legal obligations come into effect.