The Regulatory Framework

An overview of the sustainability legislation and standards affecting the European and Nordic screen industry.

Nordic Ecological Standard (NES)

The Nordic Ecological Standard (NES) is a unified sustainability reporting standard agreed upon by all Nordic film institutes and regional funds. It establishes a common framework for measuring and reporting the environmental impact of film and television productions across the Nordic region.

Who is in scope?

All productions seeking public funding from Nordic film institutes and regional funds, and all productions producing for broadcasters that have adopted the standard.

What must be reported?

Emissions reporting across production activities, including energy consumption, transport, materials, and waste — following a standardised methodology applicable across all Nordic countries.

Timeline

Nordic film institutes and a growing number of broadcasters now require NES-compliant reporting. Productions seeking public funding or producing for adopting broadcasters must report their emissions according to this standard.

Productions that do not comply with NES reporting requirements risk losing access to public funding and broadcaster commissions across the Nordic region. Green PFM can handle NES emissions reporting as an integrated part of our production finance services.

Corporate Sustainability Reporting Directive (CSRD)

The CSRD is the centrepiece of the EU's sustainability transparency agenda. Adopted in late 2022, it replaces and significantly expands the Non-Financial Reporting Directive (NFRD). Companies subject to CSRD must disclose detailed environmental, social and governance data using the European Sustainability Reporting Standards (ESRS).

Who is in scope?

Large companies, all companies listed on EU-regulated markets, and certain non-EU companies with substantial EU operations.

What must be reported?

Greenhouse gas emissions, energy consumption, environmental risks, social impact, governance practices — reported under standardised ESRS frameworks.

Timeline

Progressive phase-in from 2024, with reporting deadlines determined by company size and listing status.

Non-compliance may result in financial penalties under national transposition laws. Beyond penalties, companies risk exclusion from public procurement, financing and partnership opportunities.

OECD Due Diligence Guidance for Responsible Business Conduct

The OECD Due Diligence Guidance provides a government-backed framework for companies to identify, prevent and mitigate adverse impacts on human rights, the environment, labour and governance throughout their operations and value chains. Although a recommendation rather than binding legislation, it is widely recognised as the international reference standard for responsible business conduct and underpins EU legislation such as the CSDDD.

Companies that fail to align with the OECD Guidance risk reputational damage, exclusion from responsible investment portfolios and loss of stakeholder trust. Adherence increasingly functions as a de facto market expectation.

Corporate Sustainability Due Diligence Directive (CSDDD)

The CSDDD goes beyond disclosure. It requires companies to actively identify, prevent and address environmental and human rights harms throughout their value chains. This includes direct operations and upstream and downstream business relationships.

Companies must implement due diligence policies, establish grievance mechanisms and report on their risk management. Failure to comply can result in administrative sanctions and civil liability.

EU Taxonomy for Sustainable Activities

The EU Taxonomy provides a science-based classification system that defines which economic activities qualify as environmentally sustainable. It serves as a reference framework for investors, companies and policymakers to assess the environmental performance of economic activities.

Companies subject to CSRD must report the proportion of their revenues, capital expenditure and operating expenditure that is Taxonomy-aligned.

Additional Regulations

The EU regulatory landscape includes further obligations such as the Deforestation Regulation, the Ecodesign for Sustainable Products Regulation (ESPR) and sector-specific environmental standards. These regulations form part of the broader European Green Deal, which targets climate neutrality by 2050.

Need help navigating the regulatory framework?

We help you understand which regulations apply to your production and what action is required.

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