By Katja Artene
One of our clients in Sweden requested a comprehensive sustainability planning and reporting cycle for the year.
This is a great example of a small but impactful project, which we were excited to deliver!
After the project, we thought it was too important not to share. So, simplifying and standardising our work, we produced a graphic illustrating how the reporting year cycle may unfold for Swedish companies, particularly those required to report on sustainability.
While the reporting process is important, we want to emphasize that reporting is not an end goal in itself. The true focus should be on the systematic integration of sustainability issues into the company’s business model and value chain.
This approach ensures that sustainability becomes an ongoing, ingrained aspect of the company’s operations and decision-making, rather than just a periodic reporting requirement.
Key Milestones in the Reporting Year
- Preparation Phase (Q4 of the Year Before Reporting Year)
The Preparation Phase is crucial for setting the foundation for effective sustainability reporting. It involves data collection, goal setting, and aligning the company’s strategy with its sustainability objectives well before the actual reporting cycle begins. During this phase, companies define their sustainability goals, establish KPIs, and ensure the systems and processes are in place to capture relevant ESG (Environmental, Social, Governance) data.
- Monitoring Phase (Q1-Q4 of the Reporting Year)
Throughout the year, companies continuously track and measure their ESG performance. It’s also important during this phase to engage with stakeholders — including employees, investors, customers, and the public — to ensure sustainability efforts remain transparent, relevant, and aligned with stakeholder expectations. Ongoing monitoring allows companies to assess their progress and make any necessary adjustments to stay on track.
- Reporting Phase (Q1-Q3 of the Following Year)
As the financial year ends (typically December 31), companies consolidate their sustainability data and analyse it against the goals set in the Preparation Phase. This is the time to evaluate progress, highlight achievements, and address any setbacks. The sustainability report must align with the chosen reporting standards (such as GRI, SASB or the EU Taxonomy) and comply with applicable regulations, including the Corporate Sustainability Reporting Directive (CSRD).
Companies should also validate their data internally with key stakeholders to ensure accuracy and alignment before finalizing the report.
For companies with a financial year ending on December 31, both the financial and sustainability reports must be submitted by July 31 of the following year.
Once finalised, the report should be made publicly available on the company’s website and shared with key stakeholders, including employees, customers, investors, and regulators. This is also an excellent opportunity to engage with stakeholders, collect feedback, and refine future sustainability strategies.
We hope this overview of the annual reporting cycle proves useful as you navigate the sustainability reporting process. If your company needs assistance with any of these phases, please don’t hesitate to reach out — we’d be happy to support you every step of the way!
