A data-driven paradigm shift for the recycling industry
The new EU's Corporate Sustainability Reporting Directive (CSRD) has fundamentally changed the rules of the game for European business in 2024-2026. In the recycling and scrap industry, this means more than just new administration -- it's a paradigm shift in how companies value data. We explain why data-driven reporting has become a critical competitive advantage in the circular economy.
CSRD is the EU's tool to make firms' sustainability as transparent and comparable as their financial performance. Through the detailed framework ESRS (European Sustainability Reporting Standards) now demand precision in everything from carbon emissions to corporate governance.
Who is covered in 2026?
The introduction takes place in stages. For the year 2026, large companies meeting at least two of the following criteria are affected:
- More than 250 employees.
- Net sales in excess of SEK 550 million.
- Balance sheet total over SEK 280 million.
Although smaller enterprises (SMEs) are not directly covered yet, they are already affected as subcontractors. Large industrial giants require data from their entire value chain in order to complete their own reporting.
[Image showing a professional review of a sustainability report on a tablet with industrial recycling in the background]
Double essentialism: A new yardstick
CSRD introduces the concept double materiality. This means that a company must report in two directions:
- Impact materiality: How business affects people and the environment.
- Financial materiality: How sustainability issues (such as climate change) create financial risks or opportunities for the company.
Possibility of Scope 3 emissions
One of the biggest novelties is the requirement to report Scopia 3 — emissions throughout the value chain. For the recycling industry, this is a huge opportunity. Because recycled materials have a significantly lower carbon footprint than virgin raw materials, recyclers' data becomes a key for the customer to lower their overall emissions.
Skrotify Portal: From Numbers to Strategic Data
Since all data is now to be audited by auditors, guesswork is not enough. By using Skrotify Portal Automate the collection of logistics data and environmental benefits. We help companies offer their customers:
- Real-time climate financial statement data: Specific CO2 values for each waste stream.
- Avoiding emissions: Clear calculations on the environmental benefit of choosing recycling over landfill.
- Risk minimization: Black and white that the business lives up to the latest legal requirements.
CSRD has transformed recyclers from service providers into strategic data partners. In a world where carbon dioxide has a price, the companies that have the best control on their data win.
