"I thought we had good control over our sustainability work, until the auditor asked for documentation on food waste in the canteen. There we stood without numbers, without a baseline, and with a potential audit remark hanging over us."

This is not an unusual situation for property managers meeting the new sustainability reporting requirements for the first time. For listed companies, the 2025 deadline already applies, while other large enterprises may get a postponement until 2027. But regardless of timeline – it pays to be prepared.

→ Finance Norway: EU's stopwatch for sustainability reporting

Food waste reduction and the "do no harm" principle are at the top of the challenge list for both property owners and service providers. The new requirements may seem overwhelming, but there are practical solutions that not only ensure reporting but can also provide financial benefits.

Are you unsure how to handle these requirements without blowing the budget or overloading the operations department with new measurement tasks? You're not alone.

In this article, you'll get concrete advice on how to ensure the canteen in your building meets the new sustainability requirements, with smart solutions that actually provide financial gains.

• 2025/2027: new EU requirements
• Measure food waste in kilos
• Document DNSH ("Do No Significant Harm")
• Errors cost fines/interest cuts

EU taxonomy reporting requirements have the following timelines:

(Stop-the-clock adopted in April 2025; final directive text expected by Q4 2025 at the latest).

For canteens in commercial buildings, this means:

• You must measure food waste in kilos (not portions) as a share of total purchased food quantity
• You must document concrete measures for food waste reduction in line with EU's target of 30% reduction per capita by 2030
• You must ensure full source separation of all waste from canteen operations
• You must comply with "Do No Significant Harm" principle (DNSH) – which means canteen operations cannot harm any of the EU's other environmental goals

Important: Even smaller canteens (under 750 m²) must be included in CSRD reporting if the building is owned by a reporting-obligated enterprise. This also affects you as a property owner through "green leases" where sustainability requirements are included in lease contracts.

Reporting pitfalls in CSRD implementation

Errors in reporting can have serious consequences, from audit remarks to loss of green loans and potential fines of up to 2% of global turnover (proposed maximum, not finally adopted). Here are the most common pitfalls to avoid:

1. Wrong responsibility allocation (scoping)

Challenge:
Many are unsure who has responsibility when the canteen is operated by an external supplier but is located in a building owned by a reporting-obligated company.
Solution:
You must establish clear agreements on data sharing and responsibility allocation. Canteen data must be included in the property owner's report, even if operations are outsourced.

2. Wrong measurement method for food waste

Challenge:
The EU requires you to measure food waste in kilos and as a percentage of purchased quantity, not number of portions or currency.
Solution:
You should implement a weight-based measurement system for surplus food, preferably integrated with your purchasing system.

Step-by-step plan: From measurement to approved report

Follow this process to ensure your canteen operations meet reporting requirements:

1. Map activity codes
   Identify relevant NACE codes for your business (typically 56 for canteen operations and 68 for property management).
2. Measure food waste and EPC energy rating
   Implement a system to measure food waste in kilos and as a share of total purchased food quantity.
3. Connect digital sources
   Integrate data from POS systems, external scales, or other data sources. With the Izy platform, numbers are collected in one place so you can export them to Excel/CSV.
4. Implement prediction
   Predictive models in Izy Prediction provide up to 95% accuracy. Correct forecasts make it easier to order the right quantities of raw materials and reduce food waste.
5. Document "Do No Significant Harm" controls
   Ensure your canteen operations do not harm any of the EU's other environmental goals.
6. Conduct auditor check
   Before the final report is submitted, you should have it reviewed by an auditor.

Financial gains from meeting EU requirements

Green financing

Buildings that live up to the taxonomy qualify for better loan terms. According to DNB's Green Bond report (Q1 2025), the interest rate cut is typically 25-75 basis points for larger properties.

Lower operating costs

When food waste is measured and planning becomes more accurate, raw material consumption decreases. Even a medium-sized canteen can thus save significant amounts every year.

Competitive advantage

Tenants are placing increasing emphasis on sustainability. A building that documents compliance with the taxonomy is in a stronger position in the market.

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