Navigating CSRD compliance: Challenges in sustainability reporting for the real estate sector

This study aims to investigate the challenges faced by the Norwegian real estate sector in complying with the Corporate Sustainability Reporting Directive (CSRD), addressing a critical gap in understanding how these regulations impact sustainability reporting practices. The research seeks new insights into the barriers to implementing CSRD-compliant reporting, contributing to a deeper understanding of the sector's readiness and areas requiring improvement. The study employs a mixed-methods approach, utilizing a scoping literature review to map existing knowledge and semi-structured interviews with industry stakeholders to supplement findings. Data were collected from peer-reviewed articles, master's theses, and interviews with key stakeholders, and analyzed using thematic coding and qualitative analysis. The results reveal that the main challenges include limited knowledge of sustainability matters, difficulties in conducting Double Materiality Assessments (DMA), high costs, poor data systems, and administrative burdens. These findings provide evidence that while some companies proactively prepare for CSRD compliance, many, especially small and medium-sized enterprises (SMEs), struggle due to resource constraints and a reliance on manual processes. This highlights significant implications for improving digital solutions and stakeholder collaboration. This research offers a novel perspective on sustainability reporting in the Norwegian real estate sector, providing valuable insights into the sector's preparedness and key barriers. The study's findings contribute to advancing digital reporting practices and support for SMEs, highlighting areas for future research and potential policy development to ease the transition to CSRD compliance.