From voluntary to mandatory: Biodiversity reporting in Nordic renewable energy companies under the corporate sustainability reporting directive

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Volume Title

School of Business | Master's thesis

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Date

2025-07-31

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Major/Subject

Mcode

Degree programme

Master's programme in Strategic Management in a Changing World

Language

en

Pages

69

Series

Abstract

This thesis explores the state of biodiversity reporting in Nordic energy companies in 2024. It examines how reporting practices have developed since 2018 and how they reflect the transition from voluntary disclosure to the mandatory disclosure requirements introduced by the Corporate Sustainability Reporting Directive (CSRD) and its biodiversity standard ESRS E4. As biodiversity loss has emerged as a global crisis with significant ecological and economic consequences, energy companies, due to their dependence and impact on nature, face increasing expectations to report transparently. This research contributes to the growing field of biodiversity reporting by analyzing how four major Nordic renewable energy companies report on biodiversity and how reporting has evolved between 2018 and 2024. The study uses qualitative content analysis and a framework combining academic literature with the European Sustainability Reporting Standard ESRS E4, introduced under the Corporate Sustainability Reporting Directive (CSRD). Findings indicate that biodiversity reporting has expanded and become more structured since 2018. Companies more often provide site-specific information, report on biodiversity risks through IRO assessments, and show improved disclosure on performance and biodiversity policies. Strategic alignment is increasingly visible, for example through transition plans. However, major gaps remain. Measurable targets, cost information, and species-specific data are often lacking or have declined in detail. While CSRD has promoted broader disclosure, it has not yet fully ensured consistency, depth, or practically relevant reporting. The study highlights both progress and shortcomings in current biodiversity reporting and contributes to academic and policy discussions on corporate responsibility for biodiversity and nature.

Description

Supervisor

Pälli, Pekka

Keywords

biodiversity reporting, biodiversity, CSRD, ESRS E4, energy sector, sustainability reporting

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Permanent link to this item

https://urn.fi/URN:NBN:fi:aalto-202508146071

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[gradu] Kauppakorkeakoulu / BIZ