Amendment to the Accounting Act 2024: what does it mean for your business?

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In June 2024, new amendments to the Accounting Act came into force. The most significant change for many businesses is the requirement that sustainability information must now be reported on the same level as financial information and included in the ordinary annual report. This reporting must also be audited in the same manner as the financial statements.


This means that many companies must now address sustainability reporting, climate accounting and ESG data, regardless of size or corporate structure.


 


Key amendments to the Accounting Act


The regulatory change consists of three main elements:


  • Mandatory sustainability reporting in accordance with the EU’s CSRD (Corporate Sustainability Reporting Directive)


  • Updated threshold values defining which companies are required to report


  • Guidance on disclosure obligations under the Equality and Anti-Discrimination Act



 


3 steps to meet the new sustainability reporting requirements


 


1. Identify which requirements apply to your business


Large listed companies, financial institutions and listed SMEs must report in line with the EU CSRD Directive already from the 2024 financial year. However, non-listed and smaller companies should also begin preparations now. Why?


  • Customers and partners increasingly demand ESG reporting


  • Better access to financing when sustainability is documented


  • Strengthened competitiveness in tenders – public procurement must weight climate and environmental considerations by at least 30%


  • Improved insight into business operations enables more sustainable and profitable decision-making


2. Anchor the work internally and involve key stakeholders


Sustainability reporting is no longer a standalone process – it must be integrated into day-to-day business operations. Utilise existing accounting data, engage departments across the organisation, and where appropriate, involve customers and partners. The reporting becomes more relevant and effective when multiple perspectives are included.


3. Start early and divide the work into logical areas


Early planning ensures more accurate reporting and reduces stress. Consider structuring the work according to ESG categories:


  • Environment (E): Climate impact, resource use, biodiversity and circularity


  • Social (S): Working conditions, human rights, local community


  • Governance (G): Ethics, risk management, leadership involvement



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Climate accounting – a natural first step


For most businesses, climate accounting is the most logical starting point in sustainability efforts. A modern climate account is based on financial data and supplier information and serves as the foundation for sustainability reporting – regardless of the reporting level of the organisation.


By gaining insight into your emissions, you can:


  • Identify areas for improvement


  • Document progress to investors and customers


  • Make better business decisions


Would you like to know how your company can easily establish a climate account? Contact Camilla::