The first sustainability reporting standard designed for small- and medium sized companies in the Nordics.

A standard with the small ones in mind

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The Nordic Sustainability Reporting Standard (NSRS) is a simplified sustainability reporting framework designed for small and medium sized enterprises (SMEs) in the Nordic region. The project is run by the Nordic Accountant Federation (NAF), funded by Nordic Innovation, and supported by a multidisciplinary expert team stretching across the Nordic region. The project was initiated by former CEO in Accounting Norway, Christine Lundberg Larsen, the Norway-branch of NAF. Larsen is known for her ambitious and bold efforts towards sustainability-oriented initiatives. TILT Lab was engaged in an early phase of the project which lead to the funding-application to Nordic Innovation in April 2020. Since then TILT has been doing the project management, system design and process design. The first version of the standard was released for testing in april 2021, and the plan is for it to enter the market space during fall 2021. Read more about the project on www.nsrs.eu.

I have been working together with Kaja and Marthe Sofie an intense year on the development of the Nordic Sustainability Reporting Standard (NSRS). I have learned to know them both as extremely dedicated to the end result, they have broad competencies and high working capacity, they are structured and communicative on budget, progress and status towards milestones, they are able to handle obstacles in a constructive manner and able to motivate the team during the entire project.  They are inclusive and open for suggestions and alternative approaches. The NSRS-project would not have been delivered on time and budget without the strong efforts of Kaja and Marthe Sofie.

– Hans Christien Ellefsen, Leader Technology, Innovation & Sustainability, Accounting Norway.

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The 1st Edition of NSRS consists of the NSRS Foundation, NSRS Reporting Requirements, NSRS Implementation Manual Beginner, NSRS Implementation Tool Beginner, NSRS Report Index Beginner, NSRS Glossary, NSRS Theoretical Annex and an example report prepared with NSRS Beginner.

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Background for the project

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Sustainability reporting is a highly accessible transparency tool that - if implemented effectively - can enable policy-makers to track private sector activities’ positive and/or negative economic, social and environmental impact, as well as direct investments towards sustainable businesses.SMEs account for two thirds of the industrial pollution across Europe, but there are few tools available to support them in their green transitions. Drawing on the vast knowledge out there, the NSRS provides a simplified standard that will help SMEs get started with their sustainability reporting journeys and contribute to the larger sustainability transition amounting in the private sector.

While tailored for SMEs, the NSRS primary user is the accountant. Often the closest economic advisor to SMEs, the accountant’s expertise lies in gathering, structuring and reporting financial data. By broadening the accountants repertoire to include non-financial - or sustainability - data, the SME is closely guided throughout the reporting process by an already trusted advisor.

The standardized reporting framework also makes it easier for stakeholders, including banks, investors and customers, to assess the company’s financial and sustainability performance as well as future prospects.