“The ESG Report should be understood as an integral part of entrepreneurial action! ”
WHAT IS ESG REPORTING?
The abbreviation ESG comes from English and stands for environmental, social and governance. In other words, a company's efforts in the areas of environmental, social and corporate governance. Within this reporting, relevant company data is recorded in the so-called sustainability report.
According to the current situation, companies are required to evaluate over 50 key figures from the ESG areas.
ESG CRITERIA
Measurable ESG criteria are created for the three areas. With the help of these criteria, the sustainability of a company can be assessed.
A detailed overview of the individual key figures is provided by Global Reporting Initiative (GRI), that Sustainability Accounting Standards Board (SASB), as well as the Task Force on Climate-Related Financial Disclosures (TCFD).
IS THERE AN ESG REPORTING REQUIREMENT?
Yes, there is an ESG reporting requirement!
The European Union has adopted the Corporate Systainability Reporting Directive (CSRD). In addition to financial reports, this requires organizations to publish information on environmental and social issues, as well as responsible corporate governance.
When does the ESG reporting requirement apply?
From 2024, this provision applies to all large listed companies and from 2025 also to small or medium-sized enterprises (SMEs). As soon as they have at least 250 employees and more than 40 million euros in net revenue, or 20 million euros in balance sheet total, they are then required to submit an annual ESG report.
From 2026, the publication rules apply to all capital market-oriented companies, with the exception of micro-enterprises.
START YOUR ESG REPORTING NOW
From 2026 at the latest, the CSRD regulations (Corporate Sustainability Reporting Directive), which are mandatory for the vast majority of companies in Germany, will take effect.
To be well prepared for this, you should address the requirements for your company in good time and clarify responsibilities for data collection and reporting internally. Both the procurement of “figures that do not yet exist” and the establishment of a suitable data solution or a reporting or software tool require time in advance.
Benefits of sustainable reporting
There are also other reasons why you should start preparing now. On the one hand, your organization receives more transparency in expenses and processes. For example, energy consumption in the individual business units is clearly shown and deliberately questioned in order to to improve processes and Make optimizations to be able to.
On the other hand, sustainable and resource-saving action should be understood as a competitive advantage, even beyond economic benefits. Employees, business partners, but also customers increasingly value and appreciate transparency and sustainability when making decisions about a provider's products and services.
OUR ESG RECOMMENDATION FOR COMPANIES
Being aware of all the effects of your own actions and making them transparent is a fundamental part of a sustainable company. You should not see ESG reporting as a burden, but above all as an opportunity. In this way, economic and social metrics can be established that directly contribute to the economic development of your organization.
