Swedish New #Sustainability Act

#RE100

The Swedish government wants to introduce a law that primarily affects 2,000 major Swedish companies to implement a sustainability report. If it goes through it shall enter into force on 1 July 2016. The Act is based on an EU directive in September 2014.

Many believe that the current voluntary sustainability reports deemed to be superficial reports designed to keep the company’s stakeholders in a good mood for sustainability. Some representatives believe that the new law can serve as a decision-making model and thus an effective management tool.

What we know about the law are among others companies to explain how they work with a range of sustainability issues. Current areas to be considered are environmental issues, social issues, issues regarding employment such as work environment, respect for human rights, anti-corruption and bribery.

Description of the diversity policy apply to the company’s board. The goal of the policy and how the policy has been applied and the result of the policy’s implementation. If the company does not apply any diversity policy, the reasons for it noted. Applies only company in the last 2 years, met more than one of the conditions for “big business”.

This bill defines “large companies” of companies that meet at least two of the following conditions. The average number of employees in the company amounts to more than 250 pieces. Total assets will amount to more than 175 million (20 million) or net sales amounted to more than 350 million (40 million euros).

Enterprises of “public interest” is likely to include listed companies, insurance companies and credit institutions Even companies with “social-bearing activity” can be covered and can be comprised of electric utility or other activities in infrastructure and in health care.

Advantages of a sustainability may be that the company has an in-depth dialogue with all stakeholders and understanding of the challenges. Good survey of sustainability activities and the risks and opportunities. More benefits are to involve management in sustainability efforts.

Auditor should verify that the non-financial report has been submitted. No claim today that the report must be certified.

Last but not least, your brand is affected positively by sustainable business. Maybe we dare say that a sustainable business gives your business even more good years on the market.

#RE100

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.