The updated standard makes it easier to report on sustainability in line with existing and future requirements in one tool – regardless of level.
The Nordic Accountant Federation (NAF) has updated its Nordic standard for sustainability reporting (NSRS) for small and medium-sized enterprises (SMEs) based on the draft of the new voluntary European standard (VSME ESRS), which is built on, among others, NSRS.
Tool and guidance for sustainability reporting
NSRS is a standard adapted to SMEs and their accountants. Until now, the NSRS universe has consisted of two separate levels: Entry Level and Level 1. These have now been merged into one standard and one tool.
– NSRS offers one simple free tool in the form of an Excel file that you use for reporting, as well as guidance material. In this way, we simplify the reporting burden for the business community, says Sara Wilsgaard, sustainability expert at Regnskap Norge, and continues:
– When the European standard is adopted, NSRS will go from being a standard to a continuously updated tool and guidance. With this update, we show that we support the idea of one common European standard. At the same time, NSRS still plays an important role towards users in the Nordic market, she says.
Why updated standard?
A recent survey conducted by NAF shows that there is a need for simple tools for sustainability reporting.
– Even if the EU Commission adopts a new European standard, they will not offer any tools to help companies respond to the standard. With NSRS, NAF wants to make it as simple and accessible as possible for businesses to report on sustainability, says Wilsgaard and adds:
– In addition, there are certain areas that are unique to the business community in the Nordic region. We therefore facilitate reporting in line with national regulations and examples. For example, we will provide information about work-life balance and parental leave arrangements, along with guidance and examples relevant to local conditions, such as the Norwegian Transparency Act.
How to access the standard
To access the standard, users must fill out a form with contact information.
– The reason for this is that we want to ensure that we keep users updated when changes and updates occur. The user gets access to the standard, a tool in Excel format to be used for reporting, after filling out the form. In addition, NSRS users get access to simple guidance in the tool, as well as detailed guidance on NSRS.eu, explains the Norwegian sustainability expert.
Why you should report on sustainability
When the final version of VSME ESRS is adopted, small and medium-sized businesses may also be required to report on sustainability according to this standard from their banks, insurance companies or clients.
But according to Wilsgaard, there are several reasons other than legal requirements to engage in sustainability reporting:
– Sustainability reporting contributes to holistic company reporting, better management of environmental and social challenges, increased competitiveness and resilience, access to financing and better loan terms, and reduced reporting burden.
– Sustainability reporting contributes to holistic company reporting, better management of environmental and social challenges, increased competitiveness and resilience, access to financing and better loan terms, and reduced reporting burden.