Klappir helps society push towards sustainability

Emphasis on sustainability in business operations is growing, and the legal environment is developing continuously, requiring more detailed and coordinated disclosure of corporate information relating to environmental issues and other non-financial aspects.

By Lára Sigríður Lýðsdóttir

During the past decade, Klappir has developed a range of products that support the sustainability journey of companies and society as a whole. Much has changed since the company was established in terms of sustainability; emphasis on sustainability in business operations is growing, and the legal environment is developing continuously, requiring more detailed and coordinated disclosure of corporate information relating to environmental issues and other non-financial aspects. During these years, Klappir has worked systematically to build a solid infrastructure that supports a digital ecosystem of customers who support each other through the free flow of sustainability data, which will be a source of information on sustainability issues in the present and future. Klappir recently expanded its operations to Denmark, by establishing its . subsidiary, Nordic ApS, with offices in the harborfront sector Islands Brygge in Copenhagen.

Klappir's digital ecosystem continues to grow

The software has been in constant development for a number of years, enabling companies and organizations to share sustainability data with each other through automatic data connection which provides them with a detailed overview of all the key aspects of their operations, such as greenhouse gas emissions, water and energy consumption and waste disposal.
Users of the software can communicate with other companies in their value chains by sending them questionnaires and data requests in order to obtain a detailed overview of the sustainability performance of all stakeholders. "We make sure that all the data that must be retained is available in one place. Sustainability managers and others who work with the data no longer have to use Excel files, collect data manually and map the use of electricity, water, heat and fuel, for example," says Anton Birkir Sigfusson, director of growth and sustainability at Klappir. With an increasing number of users of the software, Klappir's digital ecosystem has grown considerably and now totals more than 1,500 legal entities in 41 countries.

Growth opportunities abroad

The company has now established itself in Denmark with its sustainability solutions. Klappir helps Danish companies and organizations manage their sustainability data and provides advisory services and support in the preparation of sustainability reports. "We have gained a firm foothold in Denmark. Our approach to inter-company cooperation in sustainability issues through Klappir's Sustainability Platform fits well with corporate needs in that country, and the benefits are considerable,” says Sigfusson.

New EU directive signals a turning point for Klappir

The EU aims to play a leading role in the world's fight against climate change; Europre has set a goal of reaching carbon neutrality by 2050. The European Commission’s new Corporate Sustainability Reporting Directive (“CSRD”) and corresponding European Sustainability Reporting Standard (“ESRS”) together establish a legal framework for corporate reporting on sustainability in a broad sense. The CSRD is an important part of the EU Green Deal. Its goal is to promote an increased flow of capital to sustainable industries and projects at the expense of unsustainable ones, and accurate data reporting will be vital for this initiative. EU and EEA member states and the corporate world clearly need to join together if the continent's ambitious climate and sustainability goals are to become a reality. CSRD is a European directive that EU and EEA member states are obligated to incorporate into their own national law. In the coming years, the directive will apply to an estimated 50,000 companies based in the EU. Large, listed companies are required to start their sustainability reporting work next year, 2024. Klappir is confident that the value chain approach that the directive and the standards incorporate will undoubtedly drive all European companies to participate in the sustainability journey, irrespective of their size. Klappir is confident that its Sustainability Platform is the ideal toolkit for corporate compliance and is now working hard to adapt its own technology and methodologies to this new European reality.

"We intend to provide our customers with top-class support with educational materials, meetings and web presentations about the CSRD and ESRS. We have already started the conversation with our biggest customers and aim to collaborate closely with them to find out how we can best help companies on this journey. This is a considerable challenge, but if it goes well, the benefits to society will be immense," says Jon Agust Thorsteinsson, CEO.

By Lára Sigríður Lýðsdóttir30 March 2023