As part of the EU’s sustainable strategy in reducing emissions and combating climate change the EU introduced the Corporate Sustainability Reporting Directive (CSRD) in 2022. This directive requires the reporting of sustainability information from a significantly wider group of companies. The CSRD imposes higher demands on reporting and especially within a company’s Scope 3 transportation emissions. The study aims to identify and understand the challenges newly affected companies face in collecting and reporting scope 3 transportation emissions to comply with the CSRD. The study also intends to shed light on the resource and capability gaps that newly affected companies encounter and propose strategies and solutions to address these challenges. The study draws from institutional theory combined with are source-based view of a company to propose a hypothesis that companies face resource and capability gaps due to institutional pressure. The research methodology employed was exploratory multi-method qualitative research. The findings identified how companies, needing to adapt to the CSRD, perceived a regulatory institutional pressure in the form of new and higher requirements and demands now placed on them. In addition the exploration resulted in identification of external challenges, affecting companies ability to comply with the new legalization. Furthermore, internal and supplier challenges were discovered as factors within companies that affect their compliance. These highlighted the presence of resource and capability gaps within companies. In order to close these gaps, the study proposes several strategies and solutions together with a roadmap to address these challenges, ultimately guiding companies towards managing institutional pressures and enhancing their sustainable competitive advantage. Solutions regarding management and strategy as well as tangible operations were identified. These solutions and strategies include developing a sustainability culture within the organization, engaging with stakeholders through collaboration and communication efforts, and implementing technology solutions for data collection and analysis. The study can potentially be utilized by companies to navigate useful solutions when trying to comply with the CSRD. Additionally, the study contributes to guiding companies towards a future position of managing institutional pressure while enhancing their sustainable competitive advantage. Companies are encouraged to shift and transform their viewpoint of complying with the institutional pressure of CSRD from a compliance-focused approach towards a corporate social responsibility-driven sustainable approach with long-term value development. The study thus contributes with a new perspective by highlighting how complying with sustainability reporting can become a tool for advancing corporate responsibility and contributing to a more sustainable development and responsible business landscape.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:kth-329303 |
| Date | January 2023 |
| Creators | Munthe Nilsson, Alexandra, Nilsson, Karin |
| Publisher | KTH, Skolan för industriell teknik och management (ITM) |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
| Relation | TRITA-ITM-EX ; 2023:360 |
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