It’s the time of the year when many outdoor brands prepare – or should prepare – for their sustainability reporting. Suston reaches out to experts to learn best practices, common challenges, and how to overcome them. Aiko Bode and Saskia Bloch from Fenix Outdoor, with brands like Fjällräven and retailers like Globetrotter, share their key insights.

Fenix Outdoor produced its first annual CSR Report already in 2013. Can you share some tips for outdoor brands just starting with sustainability reporting, on how to create a solid foundation and process?

Aiko Bode: “No matter if it is a large group of companies such as Fenix Outdoor, or a smaller and dedicated brand, I think its paramount important to first identify those fields and areas where the company has most environmental and social impact.  In the best case, these fields are also linked to the company’s own mission and vision, and cultural heritage. So that the sustainability reporting will support the long-term goals of the company.”

Saskia Bloch: “When it comes to creating the foundation, it is important to get early involvement of keypersons in the organization. And to search for a system solution – internal or external –which can gather the information, and which is directly connected to the chosen reporting standard, for example GRI or the legally backed European Sustainability Reporting Standards. It is also important to set up the basic structure. Define responsibilities: Which department needs to deliver information, who is writing the text, how is Finance involved. Create a timeframe with all needed steps: Include the time for last text corrections. Etc.”

 

How is the sustainability reporting aligned with your organization’s broader sustainability goals and commitments?

Saskia Bloch: At Fenix Outdoor, the CSR report follows the setup of our internal ethical guidelines, called The Fenix Way. Through this structure, we make sure we involve the strategic “Action Areas” which has been defined in the sustainability strategy. And since our CSR team is responsible for the text creation, the individual expert makes sure to align with the overarching goals. Also, our data system is constructed with this structure in mind.”

 

Stakeholder engagement is a critical aspect of sustainability reporting. How does Fenix Outdoor and its companies engage with internal and external stakeholders, to gather meaningful input and feedback?

Aiko Bode: “From day one it was clear that we wanted a stakeholder dialogue and involvement. Those days, this was not a common approach. However, after three international Stakeholder Roundtables with a wide array of participating groups, we experienced that constant exchange and dialogue is more valuable than a big event once in a while. Today, we use various formats and forms of dialogue and engagement with our stakeholders. Internally we hold training sessions, workshops and discussions in various locations and teams. With external stakeholders, we investigate issues-based topics, in form of dialogues, podcasts, training sessions, and also in direct communication. Critical voices and scientific expertise are needed so we can improve or even get firmer in our direction we decided to take on an issue.”

 

How do you recommend brands strike a balance between showcasing successes and addressing areas where improvement is needed, with the risk of damaging their reputation or credibility?

Saskia Bloch: “We believe that honesty is the best key to success and will bring every brand authenticity. The more a brand reports transparently, the better it is for investors or other stakeholders to judge their ESG performance. A CSR report should not be about creating a marketing image but to deliver a clear picture of the sustainability journey a company takes. There should be room to talk about successes but also failures and corrections a company went through.”

Aiko Bode: “We sometimes are puzzled how little awareness exist even about legally regulated matters among various actors of the industry. Therefore, we offer dialogue and support to our peers in order allow them to tackle such challenges.”

 

The EU is raising the bar for larger and medium-sized companies. Will the upcoming CSRD & ESRS regulations affect your CSR reporting – if so, how do you address this?

Saskia Bloch: “As a listed company we are of course affected by the new legislations. We need to go deeper in our disclosure, become more transparent and enhance the pressure on our teams in order to receive more reliable and verifiable information. Ultimately in 2025, our chartered accountants will check also the CSR Report and testify if and in how far our accounts are reliable.”

Aiko Bode: “Such regulations show that politicians finally have understood that Sustainability and CSR work is not just a “nice to have”, but essential for the long-term survival of a company. However, it will create a bureaucratic burden and may in fact overwhelm companies that will fall under the legislation, due to size or turnover. Should such companies not have done anything substantial in the field of sustainability yet, they will struggle. Because no marketing budget will buy you decent and reliable data and no PR person could show the way into a sustainable future. Within Fenix Outdoor, Sustainability and CSR, but also Compliance and Ethics, is established as a key strategic pillar of the company. Thus, we directly report to the Chairman and CEO of the Group. Positioned like this, I believe we will be able to cope well with the upcoming regulations.”

 

Lead Photo: Fenix Outdoor (Composite)