Sustainability & ESG - ACCONSIS, Munich

Every company that wants to position itself sustainably and competitively for the future must face up to the growing responsibility for environmental and social compatibility. On the one hand, the issue of sustainability is becoming increasingly important in the public’s perception. On the other hand, it is important to keep an eye on the legal and regulatory requirements relating to ESG (Environment, Social & Governance) – in particular the requirements of the EU taxonomy, which sets out clear criteria for ecologically sustainable economic activities.

Last but not least, customers, business partners, banks, investors and employees – regardless of the size of the company – expect the company management to act sustainably and that the products and services meet ESG criteria. If a company wants to survive on the market in the long term, there is no way around an ESG-compliant alignment of the company organization and strategy.

For which companies is ESG mandatory?

With the introduction of the Corporate Sustainability Reporting Directive (CSRD), sustainability reporting will be mandatory from 2024, staggered according to company size.

From 2024: capital market-oriented companies with more than 500 employees that are already obliged to provide non-financial reporting
From 2025: companies with more than 250 employees, a balance sheet total of more than 25 million euros and a turnover of more than 50 million euros that are not yet obliged to provide non-financial reporting
From 2026: listed small and medium-sized enterprises, small credit institutions and captive insurance companies

The companies for which sustainability reporting becomes mandatory must, from the date relevant to them

integrate sustainability into their strategic orientation and business model
fulfil high regulatory requirements,
report transparently on their sustainability on the basis of ESG criteria and
have the content of the sustainability report audited by an auditor, sworn accountant or audit service provider.

Compliance with these obligations is important: violations of the sustainability reporting obligation are penalised. In addition to fines, there is the threat of public announcements of violations, which can lead to considerable damage to a company’s image.

Banks must also implement the strict CSRD requirements in conjunction with the EU taxonomy and report comprehensively on their sustainability risks and impacts. However, banks have a special role to play as they not only have to manage their own ESG risks, but also take into account the ESG risks in their loan portfolios and financing activities.

Why should all companies be concerned with ESG?

Although they are not yet subject to any formal ESG obligations, forward-looking companies are already stepping up their ESG activities as they are focussing on the entire value chain.

This includes the following aspects:

Large international companies that are committed to ESG reporting will ask their suppliers about the maturity of their ESG efforts. These suppliers may in turn demand the same level of ESG efforts and reporting from their own suppliers, right down to the smallest companies in the supply chain.
Companies are increasingly being asked about their ESG policies by business partners, investors, banks or other stakeholders.
Without ESG reporting, access to capital and insurance can be completely denied or at least become more expensive, as financial institutions and insurance companies are required to assess potential sustainability risks.
As part of the EU Green Deal, the awarding of public contracts will be linked to sustainability reporting.

Smaller companies should therefore also be prepared to pursue a solid ESG policy in the near future.

Does ESG also offer opportunities?

ESG has now developed from a pure compliance and reporting issue to a key success factor for the future viability, competitiveness and growth of companies. By implementing an ESG strategy, companies and nonprofit organizations not only make an important contribution to the environment and society, but also save energy and resources through appropriate measures. Sustainability is also an important aspect for recruiting employees.

Our ESG consulting at a glance

Thanks to our interdisciplinary expertise in auditing, legal and tax consulting as well as business and financial consulting, we have a holistic view of current developments and requirements. Rely on our experts: They will show you the way through the complex requirements with a focus on the areas that you really need to cover.

Our experts will advise you on all steps of your individual ESG strategy – from introduction to implementation and auditing.

ESG “health check”: How is your company positioned in terms of ESG and sustainability reporting?
Design of sustainability reporting: definition of goals; selection of the appropriate framework
Advice on report preparation: data collection/monitoring; software selection and software implementation; reporting
Advice on funding opportunities for sustainability investments and corresponding measures
Advice on achieving a sustainable and ESG-compliant real estate portfolio; creation of climate protection roadmaps
Review of voluntary sustainability reports
ESG outsourcing

ACCONSIS a pioneer

At ACCONSIS, we also consistently follow this path ourselves and can, for example, prove the CO2 emissions per consulting hour using our certified ecological footprint.

My recommendation

ESG is now mandatory for large companies. Strictly speaking, however, ESG is a decisive factor for the future of ALL companies, as they are part of a value chain. I therefore recommend that you see sustainability and ESG as an opportunity and establish it in the company at an early stage.

Are you afraid of the complexity and effort? Rely on our experts. They will show you the way through the complex requirements – with a focus on the areas that you really need to cover.